Many new investors in the stock market is a mistake, the stock market as a grocery store. After the new investors entered the market, they were afraid to buy too much of each stock because they were not so comfortable. At the same time, it is easy to change, today it is good to look at this stock, buy a little, tomorrow it is good to look at that stock, buy a little. Over time, the stocks in the account are dazzling and numerous, but the number of each stock is often not much. It’s like a grocery store. It has everything and a little bit of everything.
Stock has become a grocery store, nothing more than two kinds of mentality caused. One is that you want to spread your risk, don’t feel comfortable with individual stocks, and put a bunch of eggs in a basket. But as you spread the risk, you must also spread the benefits. If investors don’t have the confidence and confidence to pick just one or two stocks, then most of the dozen or 20 stocks they choose don’t make money or make little money. The other mindset is that these stocks look good, so just do the same. But with the same amount of money, even if you pick the best stocks twice, you can buy ten stocks and buy one.
In fact, the biggest problem with the stock market “grocery store” is that it can seriously distract investors from carefully analyzing each stock. When there are more than five stocks in hand, it is difficult for the average investor to understand the fundamentals and technical aspects of each one, let alone follow the daily trend of each stock.
As a rule of thumb, for the average investor, a maximum of two or three stocks in an account is fine, or even just one stock. It is better to be specialized and refined than miscellaneous and impure.
There are many reasons why investors lose money in the stock market. But “impatience” is definitely the main reason for the losses. In the bear market, investors are anxious to buy the bottom of the field, a cause deep lock; Bull market and rush to cash out of the top, resulting in premature exit. It’s all a sign of impatience among investors.
Investors should be well aware that “Rome wasn’t built in a day” and that if it is a big run, it will have a longer bottoming and a longer upswing. Investors can easily buy in the process of building a bottom, or in the early days of the rise. If you have to buy in a day or two, otherwise you will miss the market, then this market, can only be a short-term rebound market, rather than what big market, miss also miss, there is no pity.
Investors need to be able to calm down during a day or two of rallies. Similarly, investors still need to be able to hold their nerve during daily intraday moves and not be tempted by a straight line.
Today Xiaobian shares some opinions on the problems that should be paid attention to by the novice stock market. This may be helpful and reference for your novice stock market entry. At the same time, thank you for the pictures and text support from Winner Wealth network or stock 767 stock website, which help us learn the knowledge of stock market and provide a more convenient way to learn.
