Retail investors are always unable to hold a strong-willed stock, always like to change shares frequently. Why do retail investors suffer from this disease?
The reason, mainly because of the following points are not correct understanding:
First, the thought of the collection is at stake.
Retail investors always think so: Good to take, sell and then buy a bullish stock, so go on, will never lose money. This view seems reasonable, but it is absurd. Because, in general, after selling a stock to buy other stocks, other stocks are also rising, since you think you sell a stock is risky, then the other stocks because of the rise together, there will be risks.
And those that do not have a rise are not necessarily risk-free. Because, first, since it does not rise, then, you buy, it will not necessarily rise, and you originally sold a stock but the rise, it is nadir risk; second, you buy a stock, it not only in the next market may not rise, but will be a sharp plunge, so that your original profits to naught. This is often the case, where people who have fried shares have a deep feeling in this area.
The second is the weak will in mischief.
Some people always think that the stock they bought is bad. See other shares in the soaring, buy their shares half a day not up, so in the mind, angry half-dead, think they buy is not hot, so in small profit or even loss of the situation to sell, to chase buy those has risen a lot of, self-think is a good stock of hot. There are two problems that are explained in this:
First, that you chose the stock when there is no hard work, is free to buy shares, not carefully selected, buy clothes are aware of the selection, why put so much money to buy stocks but will not be carefully selected? This cannot be done, and it should not be.
Second, your self-confidence is not strong or will not be firm. In fact, after looking at, their original bought shares or a had to share it, it unexpectedly in you sell after a lot of it.
Here tell us two reasons: one, as long as the purchase of stocks is not a national policy to suppress the industry, not the super large-cap stocks, not the sunset industry, not a stock, not the kind of product is the DA Lu Huo of a stock, not the pursuit of the high kind has been several times, not the trend of a bad stock, you rest assured that it will
Second, you must have tenacious willpower, do not because you do not keep up with the hot and angry yourself, you have to believe that the market is fair, the rising day will always come to their head. Later on, this sentence was spoken in China for thousands of years in a sentence. Slowly rocking the ship first to the shore said that is also the meaning.
Third, stir-fry the band to earn more ideas in mischief.
Strictly speaking, fry the big Band is not wrong, the big band of the increase at least to more than 30% of the increase, or not called the band. If the short-term profit exceeds 30%, it is not wrong to sell first. But many people, after selling, did not patiently wait until the original stock adjusted to the end, but then killed another stock. This is a very wrong approach, but also the reason why people make money is one of the important reasons.
Why don't you make money? Because your new stock is likely to fall and fall in the next market, even more than the one you originally sold. Plus the handling fee, went a lot. If you have a hard-to-pick stock and easily do the band, your end result is that you will have fewer shares. Why is it? You have no way to make sure that you come out and turn around, the price of the stock you originally bought will be in the low waiting for you to buy back. Market is so, since a wave of market again in the rise, you originally bought that only a share will certainly rise, the banker is not stupid, since the plate is good, he will struggle to pull up. Therefore, the firing band theoretically is feasible, but in practice operation, its success probability is very low.
Only a firm cover with a strong stock is the best strategy. The reasons are as follows:
One is from the concept, if the long-term firm hold a strong stock, in the stock market will only lose time not lose the principal. At present, the premise is that the purchase of stocks is not a national policy to suppress the industry, not the super large-cap stocks, not the sunset industry, not a stock, not the kind of product is a Da Lu Huo, not chasing high that has been turned several times, not the trend to go bad stock. Because the price of stock is always fluctuating, good stock will rise up as soon as possible. And during this period the company will also bonus shares, dividends, coupled with the market when the price rises, the wealth will soon appreciate.
The second is not to spend more cost. On the contrary, if you always do short-term trading, you face the following problems: One is to spend the transaction costs, and the money is to earn on their own-can earn only God knows, if not earned two times not earned, more than a few times, your principal is less natural, and the second to face the risk of falling prices of new shares, Who can guarantee that the next time they buy a stock will be able to make money? Admittedly, holding a stock is not moving, and the stock is likely to fall, but one thing is certain-you don't have to spend the cost of the transaction? Although the new buy stocks can rise, but you also have to earn back the transaction costs, this must ask the new buy shares up faster to complete the task, and the new buy shares in the end can rise faster, is not able to run faster than the original held shares? Only God knows.
Three is easy to fry. In fact, to do short-term is a very hard work, every day to see the disk, tired half-dead. Long-term shareholdings do not have these exertion.
Four is the long-term is gold. In fact, many of us have overlooked the question: time is money. You hold a stock for a long time, and it will take some money. Our life is limited, our time is limited, we can not afford to toss all the way around. Toss the're wrong about result nothing to catch. It would be a pity if the days were so fruitless. Do not toss, peace of mind hold a good stock, until doubled, so simple, your wealth will be rolling in, food and clothing without worry.
Firmly hold a strong stock bar, no longer blind toss. Your life and time, the bull market and the opportunities you face, can't stand your endless toss. Otherwise, a bull market will be missed again. In our lifetime, the chance of a bull market is limited. And our lives are limited.
The experience of the old investors ' blood and tears: Good stock why can't you hold it?