Myth 1: It’s easy to make money in the stock market

Stocks, stocks, the first feeling that many people don’t understand is that if you learn stocks, it is very easy to make money. Although the return on investing in the stock market may be high, investors lose more money than they gain. In other words, in general, there are more losing stocks than earning stocks.

First, let’s see where the money comes from. First, dividends and bonuses of listed companies; The second is: investors’ money. Dividends and bonuses are usually fixed, which means that the more money you invest, the more dividends and bonuses you get. It’s like putting money in a bank. The more money you save, the higher the interest rate. It should be noted that this income accounts for a small proportion of investors’ principal.

What is investor’s money means that you make money from the stock market. It is the money invested by others, the money earned by others, and also the money you invest. Having said that, many people may understand what happened. Let me tell you a story:

This is the story. There are ten people, ten turtles, and the ten people have 1000 yuan in their pockets. Then the ten people choose one of their favorite turtles, who chooses the turtle to run first, and the other nine people take 10 yuan out of the 1000 yuan to this person; Then ten people choose the tortoise to compete again. If the tortoise completes first, the other nine people will also give the person 10 yuan. Then we will re-select the tortoise. The rules are the same as above. This is a bicycle race. Assuming that the turtles look the same, they can’t see any difference, and they won’t starve or die. If you have a choice, can you make money eventually? Although this is not a particularly good description of the stock market, it is a vivid reflection of the rules of stock trading. If you want to make money, you must be able to choose tortoise. The perfect ending is that everyone has 1000 yuan left in his pocket.

Of course, if you have a good vision, you may win in the end.

Misunderstanding II. Long-term investment return

Unlike saving money in the bank, the bank pays higher interest for a long time. If you understand this, then you should know that the statement that “long-term investment returns more” is wrong.

Although the stock price may rise for a long time, it will always fall. Investors are tasting sweet friends here. Don’t indulge in victory, recognize your current situation, and avoid a sharp fall. Due to a variety of factors, stock prices rarely rise or fall directly. For example, current economic trends, company conditions, general market trends, and even natural disasters and wars will affect the stock price trend. Therefore, it is wrong to think that long-term investment returns are higher. For private investors, it is more important to recognize the risks of long-term investment, so it is necessary to study more short-term operations.