Retail investors account for the majority in the A-share market, but they are also the ones with the biggest losses. 7 losses, 2 draws and 1 profit. Taking into account time value, 90% are losses.
So how should retail investors trade stocks to make profits?
If you do the following three things, the probability of profit will be greatly increased, and it will be possible to make money in the stock market.
First, stocks should not be speculated. Stock speculation is a relatively vivid word given by A-shares. "Speculation" is of course very hot. Therefore, most people who speculate in stocks are chasing hot topics in the market and are keen on chasing ups and downs.
, short-term trading, hoping to achieve sudden wealth.
As long as you have this mentality, the probability of failure for retail investors is 99.99%.
It's very simple. You have no financial advantage, no chip advantage, no information advantage, no technical advantage, and no team advantage. Why do you want to grab meat from the main force's bowl?
Second, don’t touch rubbish. Generally speaking, serious companies have outstanding main businesses and relatively stable performance. If they do what they do, they should be refined and become the industry leader.
Some companies, however, just focus on whichever hot spot there is. The result is that they are still learning in Handan.
This kind of enterprise has many conceptual themes, and listed enterprises have become a platform for major shareholders to integrate capital.
Especially in the case of full circulation, some listed companies have become the best weapon for major shareholders to use hot topics to control stock prices.
If retail investors want to survive for a long time, they must start from life, choose "big brands" and high-quality blue chip stocks, buy them when they are undervalued, or buy them in the middle and late stages of a bear market and hold them for the long term.
If you don’t know how to pick stocks, as Buffett said, just buy index funds.
Third, urgent money does not need to be called urgent money, which means money that will be used within three to five years, especially money that will be used within one year. Generally, do not invest in high-risk stock markets.
A cycle of bulls and bears in the stock market usually takes seven or eight years. If you invest urgent money in the stock market, your mentality will be unstable, and it is easy to breed the "get rich suddenly?" mentality, which can easily lead to short-term pursuit of gains and losses. Especially in the case of losses,
It is easier to make mistakes in judgment. In addition, retail investors should never borrow money to speculate in stocks. This is also the bottom line that retail investors should keep in mind.