Nine Weaknesses in the Mentality of Investors

Nine Weaknesses in the Mentality of Investors. The fluctuations of stocks always affect people's thoughts. Everyone imagines gaining profits from stocks, using statistics, and playing stocks. Most people have common problems. Let’s take a look at the nine weaknesses of stock investors’ mentality to see if you have any. Nine weaknesses of investor mentality 1

Investing too much

If you invest too much emotion, too much time and too much energy at the expense of your quality of life, you may end up winning money but losing. life. Many people have given up all their consumption habits such as traveling, changing cars, and even having big meals on weekends because of stock trading. This is a standard sacrifice of the good and the last. They have forgotten the purpose of making money by stock trading.

Only focus on profits

Don’t pay attention to safety. Before expecting to make profits, you must first ensure the safety of funds. The reason why investment masters become masters is that they have a high probability of success, and even more so because of their high probability of success. Understand that preserving principal is far more important than making profits. Remember, for every 50% you lose, you have to make 100% to break even.

Simple thinking

Stubborn and difficult to adapt, new investors often want to simplify complex problems due to lack of knowledge. They either follow the trend and chase the rise and fall, or take full positions in a stock. They only recognize their own principles and are unwilling to be flexible.

No opinion

If you don’t have enough determination, you must have an opinion when investing. The market is full of games. You have made a plan before buying and selling stocks, but when you When you enter the market, you become distracted when there is any disturbance and cannot implement as planned. I followed the rumors in the morning, chased the inside story in the afternoon, and cried at the tragedy in the evening. Remember, spend the time making plans before the market, and strictly operate in a robotic manner during the market, so as to avoid being deceived by the market.

Only then will you be most familiar with and confident about the behavior of stocks. If you are tempted as soon as you hear the news and toss a lot of stocks back and forth, you will often end up losing more than you gain.

Gambling psychology

Game attitude: buy and sell as you like, enter and exit by feeling. Treat stock trading as gambling and bet on every move; treat trading as a game and pursue the pleasure and satisfaction of operation.

Blind Panic

It is very necessary to follow the herd and stay alert in the stock market, but this does not mean that listening to the wind means rain. There are many kinds of news in the stock market, and there is no shortage of false information created by people with ulterior motives. , It is always a small number of people who make big money in the stock market. When everyone agrees, you must be calm and cautious.

Fear of losing

In the competitive stock market, there is no winning general, but many people always win more than they can afford to lose, which will make them lose even more. If you want to minimize the loss when failure occurs, you must set a stop loss position and close the position promptly when you find the mistake. If you are not good at the beginning, use a small amount of funds to operate. If the position is full as soon as you start, you will lose to your bones. , it will be difficult to handle in the future.

I like stocks

The available funds in my account are almost zero every day. I either do short-term quick speculation or long-term holdings. Once the available funds appear in my account, I feel uneasy and worry about missing out. There are opportunities to make money, so you can’t wait to buy stocks. If you often walk by the river, your shoes will never get wet. The more operations you make, the higher the probability of failure. Learning to wait and daring to take short positions is a sign of maturity.

Nine weaknesses of investors’ mentality 2

The four stages of investors

The first stage: first entering the world, fresh leeks

Newborn calves are not afraid of tigers and like to watch Stock review news, always fantasize about bull stocks, eager to chase the rise and kill the fall, easy to get trapped

The second stage: study hard and be fooled every day

Now you have the foundation , learn analysis, go with the flow, make profits and losses unstable, lose control, and easily fill up positions

This is the most painful and long stage, about 5 years, most of the stock market is trapped here, and some have disappeared

The third stage: retreat and practice, professional investors

Accurately analyze the main force, predict the trend, stabilize profits, control positions, set plans, and stop profits and losses

The fourth stage: self-worth, stock review stage

Everything is bearish, money is not money, bystanders are clear, a high degree of self-discipline, and the nine weaknesses of the mentality of heroic stock investors are discussed in the wine. 3

The investment mentality of investors at different stages

1. The mentality of investors who are new to the stock market:

The most appropriate description is that the ignorant are fearless. They always like to listen to some Regardless of the news, whether it is from colleagues around me or from so-called experts, they don’t care whether the stock is profitable or not, and just buy it based on its fundamentals. If it goes up, they will be very happy and then they will continue to increase investment, thinking that the stock market Making money is so easy and much better than working. I keep encouraging people around me to join the stock market and constantly promote that it is easy to make money in the stock market.

2. The mentality of investors after experiencing a round of rise and fall:

At this stage, investors at this stage experienced the power of the stock market for the first time and began to calm down and study. What exactly is the stock market, but I have no idea. Some investors who have lost money may have stopped and stayed away from the stock market, but most of the remaining ones are still unwilling to do so and want to make back their losses from the stock market. So I started to learn investment, such as K-line, MACD, Gann theory, etc. I studied it for a while and then practiced it in the market. However, there were gains and losses during the operation, but the overall loss was still there.

3. After constant exploration, they still cannot maintain a profitable mentality:

At this time, they slowly realized that the stock market is really not for ordinary people. It seems that The threshold is very low, but it is very difficult to make money. So they began to systematically learn stock knowledge, slowly figured out a set of investment concepts that suited them, and slowly made money after practicing it in the market. At this time, they felt that the stock market was nothing more than that, and they had mastered the core of investment and the methods of making money. However, this was not enough. A stock market crash brought him back to his original shape.