The stock market is unpredictable, and no investor can guarantee that they will always be invincible in the stock market. There are many excellent investors in the market, and investment strategies and methods can be used as references, but it is important to understand that even the essence of other people's ideas will always be someone else's, and the most important thing is how to find the most suitable for yourself in the vast sea of theories and transform them into your own investment style, which requires a long time of practice and accumulation. Therefore, after investors enter the actual combat, they must pay attention to the accumulation and integration of knowledge, constantly adjust the investment strategy according to their own preferences, and will definitely form their own investment style over time.
In order to have a stable profit model, first of all, we must have the right operation ideas. Let's talk about the common thinking mistakes of retail investors:
(1) I like to copy the bottom. Especially stocks that are at historically low levels.
(2) Reluctance to stop losses.
(3) Unfortunate chasing.
(4) Don't dare to chase leading stocks.
(5) I like to predict the market.
(6) The number of shares held is too large.
(7) There is no systematic understanding of the main trading method.
(8) Unwilling to let go of every opportunity.
(9) The operation method of the bull market and the bear market cannot be distinguished.
There are five specific differences between experts and ordinary retail investors:
First, what the master wants to chase is the undoubted rise, and what he wants to kill is the unmistakable decline. And many ordinary retail investors think they understand and act before they think they will go up or down, which is often wrong.
The second is that the master chooses an absolute short position when the market is uncertain and falling, and is not in a hurry to operate, and the trend is clear and enters the market quickly. However, many ordinary retail investors operate frequently, constantly have losses, and when they encounter the fierce main force, the losses are even greater.
Third, the master is good at short positions, and the short position time is much greater than the position holding time. Ordinary retail investors are basically full of positions every day, and they are uncomfortable if they are not satisfied with their positions for one day, they can't sleep well at night, and they are in a hurry to fill their positions the next day, as if they will lose the opportunity to make a lot of money if they are not satisfied with their positions.
Fourth, the master is good at waiting and waiting. Waiting for the big opportunity to come, and then go all out, while ordinary retail investors do not wait, do not waste time, and work hard every day. The principle of speculation is deeply rooted in the bone marrow, and drifting with the tide has become a habitual behavior, and it is impossible to control itself when there is a wind and grass.
Fifth, the level of expert reading is higher than that of ordinary retail investors, and the probability of making mistakes is less than that of ordinary retail investors. Moreover, the response speed of correcting errors is faster than that of ordinary retail investors, and it is not absolutely impossible to make mistakes, and there is no excuse for mistakes.
These five questions all show that the skills of the general retail investor's technique and mentality are not yet at home. In order to solve these problems, the only way to solve these problems is to study, study, and study again, think, think, and think again, constantly improve our technical level and comprehensive quality, and build our own mentality of winning in the sea.
Retail investors with a principal of less than 50,000 yuan may wish to try this stable and profitable stock trading method
In the stock market, whether it is an old shareholder or a new shareholder, everyone should know that if a stock price wants to rise, it needs to have the main capital in it, if there is no main fund, it is difficult to form a joint force to promote the stock price to rise, and the main capital often needs to open a position before pulling up a stock. The process of washing and pulling, and when the stock price appears in a relatively low position, there is a large amplification of the volume of the situation, generally there is the main capital to open a position in this position, and after the release of the multiple, there will be a follow-up disk in, so the main funds will begin to fully shuffle, clean out those undetermined chips, and also charge cheap chips at this stage, and then will start a round of the main rising wave of the market.
So how do we buy and sell this kind of "bottom-copying multiple column" trend of stocks after we find it, here are a few details that we must grasp:
1. Everyone needs to know that this kind of stock has been at a relative bottom for a long time. On a certain day, a relatively large white candle suddenly appeared, and there is no need to be a daily limit here, and the trading volume also appeared obviously enlarged when the big white candle came out, and there was a multiplier.
2. After this large-scale white line, the main funds often go to clean up some floating chips in order to easily pull up later, so the stock price will often appear for a period of time after the correction process, this process is best shorter as possible, not more than 30 trading days, and the stock price can not fall below the lowest point of the multiple yang line during the period of correction.
3. When the main funds are fully shuffled, they tend to quickly pull up the stock price, and when the stock price breaks through the highest point of the multiplier yang line, it is time for us to buy.
After confirming the buying and selling points of individual stocks, we also need excellent money management to protect us and make us continue to make profits:
(1) Determine the maximum loss limit for each market, such as 1%-3% of the stake, the exact amount depends on the size of the account. For small accounts, limiting losses to 1% of the capital may not be practical. Because the stop-loss limit is too tight, the market price fluctuates frequently due to various factors, which may cause you to suffer a series of losses. There's nothing magical about the technique of establishing limits, it just helps to enforce the binding force and control losses in an objective and systematic way.
and (2) equiprising the risk of each position with the minimum amount of funds to be traded. It is a reasonable strategy to limit risk to a certain percentage so that a certain percentage of risk is acceptable, especially for trading. The amount of money traded is determined on a per-trade basis, often linked to market variability and, indirectly, to the risk and profit potential of individual markets.
(3) Retain 2/3 as reserves. Traders should not use more than 1/3 of the capital for speculative trading accounts as funds to hold positions. 2/3 must be set aside as a reserve, which can be held to earn interest and act as a buffer. If the equity in the account falls, it is necessary to look for opportunities to reduce the position in order to maintain the recommended 1/3 ratio.
(4) Truncate your losses. Whenever you open a speculative trading position, it is important to have a clear understanding of where your exit point (stop loss) is. Experienced traders, who sit in front of networked monitors, have a constraint point in their minds, and close their positions as soon as they see the price reach a safe exit point. They may not really want to place a stop-loss order on the floor, especially if they have a large position, because it may be a magnet to attract the attention of the floor trader to hit the stop-loss price. The key here is restraint, and not placing a stop-loss order does not have to be used as an excuse to be overly stuck in the market, nor does it have to be used as an excuse to delay liquidation at the stop-loss point.
Finally, many traders often look for various reasons to rise because they want to go long, rather than because they see a signal to rise.
Making money is because the trader follows the rhythm of market fluctuations, and the same loss of money is also because the trader does not follow the rhythm of market fluctuations, the direction may only be up or down two, but the rhythm is varied, the rhythm is not right, even if the direction is right, it is difficult to make money, and for traders, what needs to be dealt with is that you not only have to find the direction, or open a position at the right rhythm point, you must meet these two conditions at the same time, which is the most rare, which is why a good analyst is not necessarily a good trader, analysts only need to find the direction, do not care about the rhythm because they do not enter the market, but the trader is not, the losses are real money.
There is something to do, there is no way to do it, trading is not required to enter the market all the time, one is to look at the overall trend of the speculative market, the other is to look at the trader's own state, when the market rhythm is disordered, or their own state is not good, do nothing, is the best operation, many traders lose money, not strict stop loss problems, but some transactions should not be entered at all.
Compared with the profitable order to close too early, there is another extreme, running too slowly, there is no fate that only rises and falls, many traders often focus on how to improve the accuracy of the entry point, in fact, compared with the entry, exit is more important. So when the loss reaches the stop loss level, you should close the position and then stop, jump out of the original way of thinking, and re-examine what you did wrong, sometimes you can do it, sometimes you can't, this is the problem of market rhythm.
The technology itself is not good or bad, some traders use him to make money, some traders use it but lose money, the so-called profit and loss of the same source, profit from loss, loss also from profit, as for the final gain is profit or loss, to be put in more trading results.