Wrong practices and coping strategies for retail investment losses in 2021_How to control the risk of falling in stock trading The stock market is very popular among investors because of its high returns, and retail investors account for the majority in the stock market.

As traders in the stock market, we are easily trapped in the curse of "seven losses, two draws and one gain" and are unable to break through. What we need to do at this time is to summarize the mistakes we have made, overcome our own weaknesses, make progress every day, and continue to improve.

.

The following is what the editor has collected for you about the wrong practices and coping strategies for retail investors' investment losses in 2021_How to control the risk of falling in stock trading.

Hope this helps everyone.

Common mistakes and countermeasures for retail investment losses: 1. Run away if you have profits (stop profits too early).

Many investors run away as soon as they make money, fearing that it will not rise again, and cover up when they lose money. They think that if they accumulate a little, they will make a small profit, and they will only make a small profit, and they will be bullish on the stocks.

Later, I chased the rise again, and finally got caught in the hills.

Response: If it is a stock that is accelerating at a high level, you can leave the market when the 5-day moving average moves downward. If it is a high-quality stock that is at a relatively low level, you can refer to the support of the 30-day moving average or the 60-day moving average.

For long-term holdings, you can stop profits by pushing up the stop loss, which can expand the space for taking profits.

2. Don’t leave the market even if the stop loss is broken.

There is no concept of stop loss. If you don't make money, don't leave the market. If you lose, you will take it and then buy new stocks. This will lead to a lot of positions, most of which are losing stocks. In the end, the overall positions will become bigger and bigger, and you can only sit and wait.

Unwinding is very passive.

Response: Before entering the market, set a stop loss position in advance, based on the local low point ahead, the support line of the intensive trading area ahead, the rising trend line, important moving average support, various necklines or top-bottom transition support lines, etc.

Stop loss line, if it falls below it, go away.

3. Increase the position against the trend (buy the stock and spread the cost downward).

After many people buy individual stocks, as soon as a loss occurs, they do not think about reducing losses, but blindly increase positions regardless of whether the trend has changed, trying to spread the cost to unwind.

Response: If the overall floating loss is not large, and the stop loss has not been reached, and it is still in an upward trend, then you can increase the position appropriately to spread the cost, but the overall position must also be controlled, and you cannot take a heavy position or fill the position with one ticket.

4. Trading is all based on feeling, there are no trading rules.

I want to trade every day, but there are no rules for buying and selling. When I see a "good" stock, I don't have any plan. I enter the market as soon as I hit the head. I often chase the rise and fall. I am anxious before entering the market and panic after entering the market.

Response: To form your own fixed trading rules, how to choose stocks, when to enter and exit the market, how to arrange positions, etc., you must write them down to form the rules, and then through repeated testing, if you can make stable profits, then increase your investment.

.

5. Hope to make a fortune in a short period of time (expecting excessive profits).

I want to operate every day, and I also fantasize about getting rich overnight. I regard stock market investment as gambling, and operation depends entirely on luck.

Response: Have a peaceful mind, don't be in a state of blind action all the time, calm down and carefully screen individual stocks, treat stock market investment as a long-term business, and be more patient.

6 Likes home runs (full position operation).

The Jews have an 80/20 rule, which means that 20% of the mistakes you make may cost you 80% of your capital.

In your long speculative career, can you guarantee that you will not make these 20% mistakes? Because your mistakes will cause the principal to shrink.

Then let us avoid this possible 20%, divide your principal into 10 parts, and use 10% of your principal to trade each time.

Response: Adjust positions according to the quality of the market. Dare to take large positions when the market is good, and light or short positions when the market is bad.

How to control downside risks in stock trading 1. Control risks psychologically.

Don't panic when stocks fall. Generally, when stocks fall and your account loses money, that's when you really need to calm down and think independently. Watch more and move less.

When the market experiences such a correction or shock, we must calm down and handle it accordingly. Just like when the market suddenly rises, we must calmly handle our related operations.

2. Control risks operationally.

Many friends especially like to buy today and sell tomorrow, and do frequent operations.

This operation cannot be said to be wrong, it is just one of many trading methods.

If high-frequency short-term trading is in a rising market, it is possible to make money, but once the market fluctuates or pulls back, this method is a bit dangerous.

Judging trends is key.

3. Control risks on positions.

Many friends should know that position reload has a great impact on their overall account. I do not recommend that you operate with a full position at any time.

4. Control risks strategically.

We must learn to take profits and stop losses, and finding a trading system that suits us is the most important thing.

Continuously improve your trading strategies in practice, set take-profit and stop-loss lines, and strictly implement them! Avoid greed and gambler mentality! How ordinary people can become masters of stock trading 1. Learn to read the news and develop the ability to find information from the news.

Habit, in fact, all wealth information is hidden in the news.

It depends on whether you can dig.

2. It depends on the signs of the main force entering the market. For stocks without the main force's attention, whether they have good performance or poor performance, their prices will inevitably follow the trend.