First, why do retail investors always lose more and win less?

The reason why retail investors do not make enough money when it rises is not enough to lose money when they lose money is mainly because they frequently change stocks during the rise stage and like to attack the short-term. As a result, they make small profits; while the market is often completing its rise.

The decline after the stage is all from a steep angle, and you can lose all your profit in a month in a few days.

Moreover, nine out of ten retail investors lose money, but no one thinks that he is the one. Everyone counts their "reasonable arrogance" as the 10% of making money. Of course, no one thinks about why the money in stocks is so high.

It’s hard to make money; investing in stock selection means contending with institutions with huge financial strength and research researchers, unexpected policies, and the irrational emotions of the masses. At the same time, you are also at war with heaven and man in your heart, and you have to bear seemingly

Not many transaction costs add up to scary amounts.

Retail investors do not have the professional knowledge of so many industries and can clearly see the future of industry development. They rely more on unstable technical analysis systems and handicap performance to make decisions. They are at a disadvantage in the competition in the investment field. There are only super bull markets.

Retail investors only have the opportunity to make money when overall opportunities appear, and this opportunity only accounts for 15% of the development of the stock market. Unfortunately, retail investors treat any stage as a bull market. It is a miracle that they can make money in the long term.

Second, why do retail investors trade frequently? Because everyone thinks that the next trade is a rare and magical trade that can make money for a whole year. It is the so-called "Donkey Kong Effect" where Donkey Kong fell to his death from the peak of glory.

Many people often end a trade after losing everything.

Many investors choose stocks every day and are deeply afraid of missing every magical transaction. As a result, they will arouse constant expectations and frequent transactions, ignoring the importance of capital control. They only know how to study "decision-making" all day long and spend most of their time.

In "deciding" which stock to buy, the real money-making part is not stock picking, but money management.

How to decide the exit point and timing after buying a stock? Most investors have no plan. As a result, most of the exit points are exited after a painful loss, and sometimes even the previous profits are lost.

For investors who are not willing to wait for stocks that are on an upward trend, there are hot spots and bright spots in the market every day. When new hot spots arise, investors who are watching the market are eager and can't help but not act. As a result, the holdings in their hands have not yet been made.

After finishing the journey, you switch to unfamiliar areas. Operations focusing on stock selection often lead to frequent trading.

To improve this kind of mentality, you can try your hand at stock recommendation competitions on some forums. I participated in the Fortune Winner Forum before. If I win the championship every day, I will get bonuses. The most important thing is to exercise my mentality.

The stock price always fluctuates and rises. Everyone always wants to make money in all the bands. No one is that powerful. No matter how high it goes, it will not go all the way up. There are some that rise steadily and some that rise slowly, but investors

Mentality always changes repeatedly with normal fluctuations.

A correction and a decline are two different things, and most of them cannot tell the difference. If you cannot distinguish the difference, you will never be able to do well in stocks.

Third, why are retail investors unwilling to stop losses?

People's mentality is always to avoid risks. They always think that they can ignore losses if they occur, and they constantly look down for support. This is because most people can only imagine and accept things that are beneficial to themselves, and are not good at accepting things that are not beneficial to them.

It’s about your own environment.

The material society makes people's mentality unbalanced. The most critical point is that everyone sees the "benefits" of "gain" and cannot accept the "disadvantages" of "lost".

The importance of stop loss is often underestimated.

In fact, finding support when a falling wave occurs is a thankless task, because the speed of decline is often three times greater than the speed of rise!

Fear is more dangerous than optimism, not to mention that it is not easy to confirm the bottom. The smarter people are, the more hesitant they are. People always believe that ignoring risks means escaping from risks. People who are not good at stopping losses often lack self-discipline and are unwilling to respect

Negative factors, just like an alcoholic who is unwilling to admit that he is an alcoholic and overestimates his ability to control himself under the temptation of alcohol, investors tend to underestimate the disaster caused by closing losses.

Once a loss is discovered, one always hopes to recover one's capital, but the loss itself has actually occurred, and if it continues, it will be an even bigger loss - investors who bought bank stocks in 2007 ended up being stuck for two years without being able to get out, and in 1997

The investment in Sichuan Changhong that was unwilling to stop losses has been stuck for 14 years!

What is even more regrettable is that investments that are unwilling to stop losses cannot withstand the strong trend pressure of the market, and often end this painful experience when they lose 50% or more, and then continue in a state of psychological imbalance.

For even worse investments, some will even find it difficult to bounce back and return to the market. Instead, they will go to the other extreme - settling a small profit immediately, falling into what we call the second trap of frequent trading.

Therefore, the impact of not stopping losses and not executing stop losses is not only monetary losses, but also a greater force of habit that pulls you far away from the road to success.

Fourth, why can’t retail investors make double the money in large bands?

Every investor has good wishes at the beginning of trading, thinking that the stocks they buy can make a lot of money in a year, double or even N times. Even if the stocks they hold rise in response, few people can make money.

Money that has increased exponentially.