Why do many retail investors fly as soon as they sell, and set up as soon as they buy?
This actually involves some psychological factors and investment misunderstandings.
First of all, retail investors may have "fear" and "greed" emotions when trading stocks.
When the price of a stock falls, retail investors may feel panic and anxiety and rush to sell the stock to avoid further losses, which is "sell and fly";
And when the stock price rises, retail investors may be driven by greed to buy high, and the result is often to buy at the highest point, which is "buy and set".
Secondly, retail investors may lack sufficient investment knowledge and experience, and have insufficient understanding of market volatility and risks.
They may blindly follow the trend, listen to rumors, lack independent thinking and rational judgment, and are easily affected by market sentiment and hot spots, leading to mistakes in investment decisions.
In addition, retail investors may lack the concept of long-term investment, pursue short-term returns too much, trade frequently, and are easily disturbed by market fluctuations and noise, resulting in an increase in investment costs and eventually falling into a trapped-in situation.
To avoid this dilemma, retail investors should pay attention to the following:
Learn investment knowledge and improve investment skills;
Maintain a calm and rational investment mindset to avoid being affected by emotions;
Formulate reasonable investment plans and risk control strategies;
Adhere to the concept of value investment and avoid blindly following the trend and speculative behavior;
Focus on long-term investment and not be swayed by short-term fluctuations.
Through continuous learning and experience, every retail investor has the opportunity to get out of this dilemma and become a more rational and successful investor.
Persist in patience and determination, continue to grow on the investment path, and move towards a more stable and sustainable investment path.
Investing in the market is a long-term process, be patient and determined, and don't be swayed by short-term fluctuations.