A big reason for retail investors to lose money is that when they enter the market, they want to get rich, and they don't know the importance of protecting the principal and how to protect it. First, the importance of protecting the principal

To put it simply, the capital is gone and it is impossible to make a comeback. To understand a simple mathematical knowledge. 1,, loss of 5%, into 5,, but 5,, to return to 1,, you need to make a profit of 1%! If the loss is 7%, leaving 3,, you need to make a profit of 233%. Therefore, if the loss is more than 7%, there is basically no hope of returning to the capital. Second, how to protect the principal

First, learn the theory

As you know nothing about the stock market, you can't do anything about fundamental and technical analysis. You only listen to the news and enter the stock market by introduction and feeling, and the loss is inevitable. This business is actually the same. If you don't know anything about an industry, will you invest blindly? At least there should be a market survey and an investment plan, right? Second, it is better to choose a good stock < P > as a retail investor or three leading blue-chip stocks in different industries. Those concept hot topics are not the dishes of retail investors at all. Because there is no financial advantage and no technical advantage, why go to play hot spots and short-term games? Third, grasp the turning point < P > that is, the timing of buying and selling. To enter the stock market, you should at least know what a bull market and a bear market are about. At the end of the bear market, when no one talked about stocks, the technical 25-day moving average just started to go up. Then hold it in the medium and long term until the bull market ends and short selling when the bear market comes. What are the characteristics of the bull market ending? It is when everyone makes money and the index has risen by more than 7% or even doubled. Fourth, strict discipline

Set a few rules for yourself: don't do stocks in a bear market, and wait for empty positions. Only do stocks with excellent performance and upward trend. If the medium-term trend changes, you must stop.

to keep the principal, the above items are almost enough. The key is to control your hand, otherwise there is no way.

In stock trading, the principal is just like a person's life. If there is no principal, there is nothing. In the market, I often say this: if you don't pay, you become half. There is another law in the stock market: one gains, two draws and seven losses. If you can protect the principal, you will beat 7% of the people. So how to protect the principal?

first, learn to be short. There is a very philosophical saying: the best deal is not to trade. An important reason why most retail investors continue to lose money is not the market, nor the skill level. In fact, it lies in frequent transactions, and the error rate caused by frequent transactions has greatly increased. Even if you earn some money, you will be handed over to the brokers. Therefore, if you learn to short positions, you will actually learn how to keep the principal.

second, only make understandable transactions. Stock trading is really a fight expectation. But if you can have a certain logic and clear understanding of this expectation, you can trade. If the understanding of this expectation is vague, or even an ignorant guess, either your transaction is dangerous. Your ignorance puts your principal in an extremely dangerous state, and such behavior is the most harmful to the principal. Therefore, we must have a clear and rational understanding of stock trading, that is to say, I will do it if I can understand it, and I will not do it if I can't understand it.

third, resolutely implement trading discipline. The trading discipline mainly referred to here is the concept of stop loss. No matter what you do, the first thing you should think of is how to set the stop loss line. That is to say, I did something wrong. What should I do? This thinking must be made clear before the transaction, and it must be resolutely implemented during the transaction. The most taboo is to give yourself reasons, hope and explanation. Only in this way can you effectively protect your principal.

In short, protecting the principal is a basic principle of a stock market trader. Only by protecting the principal well can we realize the maximum income when the market comes, otherwise everything will be a tree without roots and water without sources.

Only by keeping the principal can we gain a foothold in the investment market. Only then can we have the opportunity to deal with the market and have the possibility of defeating the market. Those who don't pay attention to risk control and keep the principal will be swept out of the market in a few years.

how to keep the principal?

I think the most important thing to keep the principal is not the unique skill of stock selection, nor the firm stop-loss discipline.

the most important thing to protect the principal is to put your own funds in a comfortable position.

what is the position of freedom of advance and retreat of funds?

in terms of positions, the funds used for trading are mostly less than half a position. When we talk here, we use our stock friends to say: You are wasting the efficiency of the use of funds.

no.

Tao Te Ching says: 3 strips make a wheel, and it is because the middle is empty that it can play the role of a wheel. There are utensils made of clay, just because the middle is empty, it can have the meaning of utensils. A house is built by cutting a door and building a wall. It can only be used for living because the middle is empty. This is the role of "nothing"

Only by keeping some idle funds in stock trading can we play the strategy of freedom of advance and retreat in stock trading. If you fully Man Cang, heavy positions will become a one-way effort that can only go up but not down. Because the position is always not high, so the loss is limited when the judgment is wrong, because there are idle funds to spare, so you can quickly resurrect with blood and find another opportunity to fight again.

In terms of trading strategy, only put funds into safe stock prices or points. Instead of predicting which position may earn more.

this means that the funds are going to die. Only in this way can the maximum security of the principal be guaranteed. The death in stock trading is the stock price or index that rises by more than one or two times after the speculation. Stocks with inflated valuations and stocks at risk of delisting. Although these risky stocks and indexes are still soaring, they are still full of temptations. But for the safety of funds, investors must not take risks. Remember that the principal will not die. We should only invest in companies with simple business and good development prospects, and in stocks that are still being violently speculated. Stay away from speculation, embrace undervalued stocks, and plan for the long term, not care about the small losses in front of you. . . . Recently, there are so few praises in question and answer. Praise will improve my question and answer ranking. Your praise is my writing motivation. I hope to like it more! After reading the praise, I am rich, thank you for your attention!

the most important thing in stock trading is to protect the principal, which is very correct and I agree with it very much! The three points put forward by Warren Buffett, the first principal is safe; Second, the principal is safe, and third, remember the first two points; Even the man of the hour in the stock market agrees that it is most important to protect the principal in stock trading, and there must be a reason.

Look at these data and you will know why it is most important to protect the principal in stock trading: How to protect the principal

The best way to protect the principal is to stay away from the stock market or wait and see, which is the best way to protect the principal. However, if you stay away from the stock market or wait and see, you will lose the value of investing in the stock market and lose the opportunity to invest in the stock market; Therefore, I want to protect the principal of stock trading, and I don't want to miss the stock market opportunity. I can only protect the principal from the following points.

First: rational allocation of positions

People often say that we should diversify our investments and don't put our eggs in the same basket, which shows the importance of rational allocation of positions in investment. When to be short, when to be light, when to be heavy, and never leave Man Cang, stock market risks are everywhere. Once Man Cang is locked, he loses the chance to move.

Second, there is strict discipline.

In stock trading, we must clearly understand the general trend. If the bull moves in the general trend, we can do it in a heavy position. In a bear market, it is best to wait in an empty position and play in a small position. There is also a stop-loss and profit-taking point for stocks, especially the stop-loss point is very important, which is the key to protect the safety of principal; That is, stock trading points are planned and purposeful, when to buy and when to sell.

third: recognize the general trend and recognize yourself

Stock trading should follow the general trend, follow the general trend and not go against the trend; At the same time, we must also recognize our ability to trade stocks. We must be clear about buying and selling stocks. If we don't understand it, we should not buy it, and we should not do stock trading by chance. This is a good way to protect the principal in stock trading!

Investment is risky, so be cautious when entering the market; This slogan has already suggested that there are risks in stock trading. If there are risks, you will face losses. Therefore, if you want to find a way to avoid losses, you must keep the principal safe. If you can't even protect the principal safety, who is qualified to talk about profit? Therefore, the most important thing in stock trading is to protect the principal security, which is very correct!

many people have made money, but in the end they have lost money because they don't pay enough attention to the principal.

it is possible to make a profit only if you keep the principal. The principal fluctuates too much, which seems to make money. If you do it for a long time, there is a great possibility of losing money because of too much uncertainty.

Keeping the principal is the basis of keeping a good attitude, and the attitude of not losing money and losing money is completely different.

Losses will make people fidgety, frustrated, disappointed, and negative emotions one after another, while keeping the principal will see more hope.

you can easily set sail again by keeping the principal.

and those who finally make a profit attach great importance to the principal.

Dabao has a habit of making stocks. Every time he makes too much profit, he will stop to have a rest and stabilize his mentality, and the process of stabilizing his mentality is also a process of turning profits into capital.

because of the large profits, continuing to operate will produce two results, radical or conservative.

radical because of the huge profits and the desire to accelerate capital accumulation.

and this kind of radicalism will often cause great losses, because many times it will be the end of the market, and it is easy to have deep cuts or continuous cuts if you continue to operate. The best way is to stop and judge the direction, position and mentality of the market, and wait for a wave of intermediate callbacks, rebound and make another wave of market.

and this kind of rest is not inaction. Steady stocks, stocks with high quality and no sharp rise in fundamentals, are the targets of rest, and the falling profits are not retreated much. The rising profits will be considerable due to the superposition of the large profit ratio in the previous period, and most of the markets will have a compensatory increase at the end of the market.

once the end of compensatory growth is established, the stock can continue to operate without compensatory growth, indicating that there is still a market in the later period.

this not only keeps the principal but also keeps the profit, which may also lead to greater profit.

For those who are cautious after making a profit, it is easy to go short. Although many people suggest short positions, short positions in a big market are tantamount to losses.

there is absolutely no need to go to short positions. If you can exchange a small loss for a large profit, remember that short positions are irrational.

Dabao will only adjust its positions through position adjustment and allocation, control risks, and allow profits to retreat, but it will never allow the big market to be empty. After waiting for a big market for five years, the result is missed, and the mentality is unbalanced and high. Isn't this asking for losses?

I feel that the risk is increasing and adjust to low-risk stocks. Appropriately increase the risk ratio after the risk is released. It is enough to resist risks.

in the past 15 years, due to the reasonable adjustment, even if it plummeted, it also showed good returns by using some methods. And it is in a state of full melting.

if there is no loss in short positions, there is no gain.

The qualification for new risk-free arbitrage is gradually lost, which is not cost-effective. It is also easier to be caught in the middle of the rebound, and constantly adjust the risk of holding positions according to the market, so as to maximize profits and reduce risks.

to keep the principal, you don't have to control the position, and you don't need to go to the short position.

so how to judge the risk of individual stocks?

1. Learn to judge the risk levels of different stocks.

the risk of stocks that are used to ups and downs will not be small, and they need to be avoided after the ups and downs. The stocks with little long-term fluctuations are suitable for hedging. In fact, it's very simple. These stocks can be used. If you make a profit, you can buy some stocks with low risk, and there is not much room for decline.

The stocks sold have fallen by 3%. After stabilization, you can exchange stocks when you only lose a few points when you buy stocks. In fact, 2%+ of the profits have been saved, and a few points and a dozen points are allowed to retreat. Of course, it is better if you make profits later, and you have actually earned 3%+ or more.

However, these losses and profits can be omitted, because if we do this for a long time, the profits and losses will be offset and the profits will not change too much.

2. Looking at the increase, the demand for callback with excessive increase will be greater, and there is actually a huge room for profit or loss.

for those long-term and stable ones that have not risen much, it's better to hold them after buying them, or to be a band. If the increase is too large, the risk will be released after a sharp correction.

a five-fold and ten-fold increase and a 5% callback are particularly common. And this down cycle, you can completely operate low-end stocks to make a profit, and then slowly intervene and eat a counter-pumping market.

However, many retail investors can't double the market after intervention, but they are at risk of falling by 5% at any time. Learning to hedge will reduce this risk.

Dabao often says that the stock market will not be completed in one day, and it will give you enough time to switch positions and exchange shares. When selling stocks, you don't have to sell them all at once, and you don't have to exchange them all at once, so you can do it slowly and avoid risks. If you continue to rise sharply, your profit will be good. You will continue to sell slowly and buy slowly. Finally, you will find that such a slow exchange will not only avoid risks but also increase your income compared with one sale.

We must pay attention to preserving the principal and profit, and try to rest when it is time to rest, and increase the possibility of profit, but don't operate aggressively or open positions.

Graham, Buffett's teacher, has actually made a more in-depth analysis on this issue.

if you are investing rather than speculating, you can't emphasize enough to protect the principal.

Graham said something about this, which I hope all friends who invest in stocks can keep in mind:

Two important principles of investment: First, don't lose money; Second, don't forget the first rule.

the principal is so important to everyone, so how can we keep it? You should know whether you are investing or speculating

Graham's definition of investment is: investment is an act that can promise the safety of principal and provide satisfactory returns after in-depth analysis. What can't meet these requirements is speculation.

Therefore, stock speculation is not necessarily speculation. Speculation is usually to buy stocks with the purpose of making quick money.

if it is for the purpose of investment, it is necessary to invest time in analyzing and investigating the company behind the stock. In order to make the principal more secure, we must also ensure that the price we buy has a certain margin of safety, that is, the best price is cheaper. If there is no such good opportunity, at least we can't go after it. In this way, if the stock price falls in the short term, it will not necessarily lose money.

after all, investment will not