If you have to use two words to describe the current retail investors, there are only two words left, anxious.
Maybe last year, I would describe it as impetuous, but the current situation is indeed anxious.
After all, when everyone is looking forward to a bull market with great anticipation, but feels back to the familiar taste of a bear market, it is doomed to be anxious.
Restlessness, as the name suggests, anxiety + irritability.
It's easier to understand irritability, because there are few opportunities in the market, it's hard to make money, and if you're not careful, you will lose money.
Anxiety, on the other hand, is because it is always struggling between hope and despair, which is very painful.
Bull and bear, bull and bear, the mentality is repeatedly anxious, which is also the essential reason for anxiety.
Two of the most frequently asked questions.
Question 1, whether you can still hold a certain stock in a deep set is hopeless.
Since it's already a deep set, why not choose to lie flat.
Because of the fear of continuing to fall, the fear of thunderstorms, and the fear of delisting, there will be no recovery.
If you know that the fundamentals are so bad when you buy it, then don't buy it at that time.
When I bought it, I thought I was doing a short term, it didn't matter, but I ended up in it, and I couldn't extricate myself.
Of course, there are also some high-level big white horses, which are also deeply set in.
Halfway up the mountain, I don't discuss the issue of cutting meat, and when I get to the foot of the mountain, I want to stop the loss, which is the standard bear's mentality.
Question 2, whether it has fallen to the bottom, whether it is considered to have bottomed out, whether it can increase or cover positions.
Some investors actually have some money in their hands, or they have left a part of the adjustable positions.
They are in a hurry to buy the bottom, for fear that they will not buy the lowest point.
Those who are in a hurry to replenish their positions are often not short positions, and they have some stocks in their hands and want to make up their positions at a low level to solve them.
On the one hand, whether the stock you bought is right or not, and on the other hand, whether you should cover the position now.
There must be no standard answer to these questions, and no one is an immortal.
But this mentality is obviously easy to copy halfway up the mountain.
This kind of bull and bear alternating market, both afraid of falling and afraid of rising, is a normal state of mind, but it also reflects the inner restlessness from the side, unable to settle down.
If you are impetuous, you will definitely not make money, because the way you shoot, the point of your shot, and the action of your shot will be distorted and deformed.
What does it mean to sink your mind?
First, know how to rest.
Knowing how to rest means not to be blind and not to always trade.
The higher the frequency of transactions, the greater the error rate.
Calm down means not to make unnecessary transactions, but to know how to rest.
We just want to make money too much, we want to make money every day, so we can't bear to be lonely.
When you don't have chips in your hand, you always feel like something is missing.
A downtrend often lasts for a long time, but there is always an opportunity for the stock on the way down, and you can't help but want to buy it.
This feeling of being in the market every day is actually very good, because dopamine is at work.
But in reality, not knowing how to rest means that there are some stages that are destined to lose money.
Especially now that 4,000-5,000 stocks are falling and shrinking to more than 600 billion in the market, it is wise to take a break.
Second, know how to observe.
What is called observation is actually to observe the disk and observe the movement of funds.
Excellent trading must come from seeing more and moving less.
Many retail investors are at two extremes, either paying special attention and it is best to keep an eye on the market at any time, or they don't pay attention to it and don't look at the stock market at all.
Both are certainly wrong.
Knowing how to observe is actually a process of continuous search and verification.
This process is not achieved overnight, it is not to look at it today and talk about it tomorrow when you are busy.
This process must be continuous and cumulative.
There are some stocks, in fact, a market maker repeatedly does, if you can track and observe for a long time, you can grasp the operation of individual stocks, and the probability of making money will be greatly improved.
Third, know how to wait.
Knowing how to wait means waiting for a good time.
In the stock market, opportunities are available every day, but good opportunities are rare.
Good opportunities often arise when the market is very cold, or when there is a panic.
It can't be said that stock speculation must be guarded, but it is also necessary to know how to hibern.
Like a leopard, prostrate on the ground and wait patiently for the prey to come within range of what can be caught.
Fast, ruthless and accurate are the basic principles of stock trading.
But this has nothing to do with short-term and long-term speculation, it refers to when choosing stocks, you should try to calm down your mentality, and then win with one move.
Repeated hunting is not only a low success rate, but also a waste of physical strength.
The principal amount of money invested is precious, and although there is a margin for error, it is not a reason to make mistakes repeatedly.
If you don't have a good opportunity, don't start easily, trial and error is fine, but don't always try and make mistakes, and try the principal.
Fourth, know how to implement.
Knowing how to execute means executing your strategy according to a plan.
The reason why many retail investors lose money is that they do not execute their trading strategies according to their plans and always do what they want.
When people want to buy or sell stocks, their hearts are restless.
Because only trading can make money, and not trading is just facing a group of numbers, which is very cold.
But in fact, the strategy is right, the restlessness is wrong, and emotionality can easily lead to the strategy not executing according to plan.
During the session, you see a lot of stocks going up, and you think they are good stocks, but as soon as you buy them, they go down.
To execute this thing, you must calm down and calm down before you can do it.
If there are turbulent emotions in the heart, there will definitely be mistakes, so don't do trading outside the strategy in the intraday, just strictly implement it.
Of course, to achieve strict implementation, it needs to go through a certain amount of experience.
When trading, turn yourself into a cold machine and don't be emotional.
Fifth, know how to adjust.
Knowing how to adjust refers to knowing how to adjust one's own mentality and one's own strategy.
Many retail investors execute trading ideas, trading strategies, are actually wrong.
If you don't adjust, you'll never have a chance to make money, because one mistake comes wrong after another.
If you find yourself trading with repeated defeats, don't get on the edge of the bull's horns, because it may be inherently wrong.
Especially in the field of short-term trading, there are many tactics that are inherently wrong, and the more you learn, the deeper you set.
When you make mistakes in a row, you have to stop and reflect on your trading and what the problem is.
Don't be impatient to buy a stock to recover your losses, the more anxious you are, the more you will lose money.
Summarize and reflect on mistakes, adjust strategies, adjust mentality, reassess the situation, and figure it out before you come back.
People who speculate in stocks want to make money, otherwise what stocks to speculate, but stock speculation pays attention to ways and methods, as well as mentality and execution.
Don't be impetuous, and don't be impatient.
The imbalance in the mentality cannot solve the problem of stock speculation, and only by sinking down can you make money.