The stock market is a negative sum game market. Why do you say that? Because this is a game where everyone's money is played in the same pool.

A-share listed companies have extremely low annual dividends and have always been known as the iron cock. However, the transaction tax in the securities market is surprisingly high. Let's make a rough calculation: suppose that when the market is bad, the daily trading volume of Shanghai and Shenzhen stock markets is 500 billion. According to the transaction fee of 0.5 ‰ and stamp duty of 0.1 ‰, the total transaction tax for the whole year is 5000 * 250 * 0.0013 =1625. In other words, tax authorities and brokers take away at least 654.38+0625 billion yuan from the securities market every year.

Without incremental capital, there will be less and less money in the market. Then, if someone makes money, someone must lose money, and money keeps flowing away from tax channels, then according to the zero-sum rule: making money+losing money+tax =0. As can be seen from this formula, people who make money = people who lose money+people who lose money. Therefore, it is normal for most people not to make money.

Because A shares are a retail market. However, institutions, brokers, large households and funds account for a small part. These institutions have incomparable natural advantages over ordinary retail investors: advanced trading equipment, more professional financial talents, more technical means, more informed and timely inside information and so on. There is also a great capital advantage, which can directly determine the short-term trend of a stock. So they made a lot of money.

In addition to the above conditions, retail investors also like to listen to biased opinions, and often fall into the beautiful trap because of the false news spread by the bookmakers.

In a word, the reasons for the loss of retail investors are: lack of professional skills, backward camouflage, and easy to be induced to listen to rumors after the news.