[Trading experience] - Why do you always lose?
(Thanks for liking and following, which is the biggest motivation)
Do you often ask yourself why I always lose, why I didn't execute according to the trading plan, I knew how to do it, but I didn't do it? Why are retail investors always losing money? In this cruel financial market, how many retail investors can make a profit? 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 affected by market sentiment, blindly chasing ups and downs, resulting in constant frequent trading
2. Lack of professional knowledge and experience: When entering the market, the knowledge of investment and trading is limited, and the skills of understanding the basic principles of the market and technical analysis are lacking. There is no in-depth study of the fundamentals and industry dynamics of the investment target, and investment is made only by listening to others' deception or blindly following the trend.
3. Lack of risk management and investment plan: Usually lack of strict risk management strategy and investment plan
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. Long-term full position, full position, either get rich or go to zero
7. Like to carry orders, a big taboo!
8. Too subjective, constantly changing trading plans.
[This is not this year's post, I found last year's record and reminded myself, and I am sharing it again]