(This is Uncle Ai's experience over the years. Thank you for your likes and attention, which is the greatest motivation)
Do you often ask yourself why I always lose, why I didn’t follow the trading plan, why I knew what to do but didn’t do it? Why are retail investors always the ones who lose money? How many retail investors can make a profit in this cruel financial market? How many people don’t give up after losing money? How many people know how they lose money?
1. Emotion-driven decision-making: Retail investors are often easily influenced by market sentiment and blindly chase ups and downs, resulting in constant and frequent trading.
2. Lack of professional knowledge and experience: When entering the market, they have limited knowledge of investment and trading, lack the skills to understand the basic principles of the market and technical analysis. They have not conducted in-depth research on the fundamentals and industry dynamics of the investment targets, and only invest based on others' hype or blindly follow the crowd.
3. Lack of risk management and investment plans: There is usually a lack of strict risk management strategies and investment plans.
4. Information asymmetry and manipulation: There is information asymmetry and manipulation in the capital market, and retail investors are often at an information disadvantage.
5. Like to go against the trend, constantly buy at the bottom and touch the top
6. If you keep your position full for a long time, you will either get rich or lose everything.
7. It is a big taboo to like to carry the orders!
8. Being too subjective and constantly changing trading plans.
(Thank you for your likes and attention. I will update you in the next issue on how to change it.)