As an old stock investor who has experienced many bull and bear market changes in the stock market, I deeply understand that it is not easy for a retail investor to make money through stock trading. In this market, the fate of the vast majority of investors is leeks.
Don’t blame me for sounding so pessimistic and depressing. Just remember that good advice is harsh to your ears and good medicine is bitter to your mouth.
In every round of bull market and bear market rotation, a group of investors will inevitably be eliminated due to losses and leave sadly; at the same time, there will also be individual investors who make huge profits and become "stock gods" and attract a group of new investors. Enter the market. Don't think that it is easy to make money in a bull market. When most bull markets are confirmed, they are often already in the second half of the bull market. Only a few prophets can accurately buy the bottom in a bear market and successfully escape from the top in a bull market. After all, there is only one "Yang Wanwan".
Most retail investors are more likely to be trapped at the top in a bull market. Even experienced investors are often trapped after buying the bottom. There is a famous saying in the stock market: Novices die on the top of the mountain, while experts die halfway up the mountain. That's the case.
There is another metaphor for bargain hunting in the stock market: you think the stock price has dropped to the floor price, but you didn’t expect that there is a basement under the floor, there is hell under the basement, and there are eighteen levels of hell. Explain that sometimes it is very difficult to determine the bottom of a stock price.
Although it is very difficult for investors to make money in the stock market, everyone is eager to give it a try. The greatest charm of the stock market is its ups and downs. Everyone is lucky enough to think that as long as they can sell high and buy low, they will be able to withdraw money from the stock market. If this is achieved, the stock market is a permanent cash machine. But wishes are beautiful, but reality is often cruel.
Of course, there are people who have made money in the stock market. Those who have been in the stock market for many years will undoubtedly have enjoyed the pleasure brought by when stocks rise. This kind of pleasure can easily lead to the illusion that making money is so simple, making the hard money earned through hard work seem very humble and unattractive. It will not wake up without going through a brutal bear market repair. But there are also people who are so stubborn that they become like crazy gamblers, and they still want to buy stocks at the same time. He really spent a lot of money and was brave enough to live in poverty.
The fluctuations of stocks are entirely due to human manipulation. No matter how beautiful the performance of a listed company is, the stock price will not grow automatically like crops. The purpose of the main force in raising the stock price is simply to cash out at a high level, and at the same time, some retail investors will make profits when the stock price rises. After all, this market still requires retail investors to participate, whether they participate by themselves or purchase funds.
Without the participation of the majority of retail investors, it would be impossible for the main force to obtain ultra-high profits in a short period of time. These profits are not brought about by the performance of listed companies at all, but by the price difference of stock speculation.
Most of the funds in the stock market have flowed to listed companies; if listed companies can fully return the money collected in the stock market to the stock market in the form of dividends and dividends, then after nearly thirty years of development, It is impossible for the stock index to still fluctuate on the axis of 3,000 points.
The stock market is fair. No matter what your status is, you must respect the market. Otherwise, the tragedy of "as soon as you enter the stock market is as deep as the sea, and your funds belong to passers-by from now on" will happen. No matter where you come from, if you are really smart enough to accurately step on the rhythm of bulls and bears, and can select high-growth stocks, you will also have the opportunity to achieve financial freedom.
The stock market is also unfair. In the face of huge interests, some people must take risks; I believe that insider trading and rat positions will always exist, but they will become more and more hidden.
Retail investors are undoubtedly at a disadvantage in terms of funds and information. All public news in the stock market is basically the news that the main force needs retail investors to know, but there is very little news that is truly valuable to retail investors' profits. We have all hoped to use indicators to capture the main trading intentions and capital movements, but many main operations and transactions are not in the secondary market at all, and changes in market volume and price cannot reflect the main trading traces.
If retail investors want to survive and make profits in the stock market, first of all, choosing high-growth stocks and holding them for a long time may be a more reliable way to make profits. Secondly, the trend is king, and short-term and swing operations must be based on the principle of making profits and knowing how to make a profit in time. Stock trading still requires some technical analysis skills.
The stock market is completely designed based on human weaknesses. People who make money want to make more, and people who lose want to make a comeback. The final outcome of most investors is generally a loss.
The stock market serves national construction. As long as the lost funds are regarded as contributions to the country, you may feel much calmer. Maybe these funds are turned into a steel plate on the aircraft carrier, or a screw on the aircraft. Can investors not say that stock trading is a patriotic act?
If you have made money in the stock market, congratulations! This not only means that you beat the main force, but also means that you beat yourself.