Is it a taboo to buy stocks with a full position and trade in the stock market?

Yes, the risk of buying and selling stocks with a full position is very high. It is certain that high risks are also high returns. However, investment risks must be controlled, so it is not recommended to operate a full position.

Extended information

1. Understand the advantages and disadvantages of all-in, all-out investment.

Advantages of all-in, all-out investment:

1. Investment can maximize returns;

2. There is no difference between risk and split investment , there is no expectation of cognition of the stock;

3. It is possible to buy the whole position at the bottom.

Disadvantages of all-in, all-out investment:

1. The risk taken is too high and there is no risk differentiation;

2. When a loss occurs, all funds are borne Loss.

Those who like to invest in stocks all-in and all-out look at investor psychology based on the advantages and disadvantages:

1. Have a certain gambling mentality;

2. In the face of stock market risks, the all-in, all-out approach has equal opportunities and risks;

3. It is possible to maximize returns.

2. As far as ordinary investors are concerned, the most correct investment method is fixed investment.

For ordinary investors, the all-in, all-out investment method is too risky. There are three stages in the stock market, two of which involve higher risks:

1. In the bull market stage, the all-in, all-out approach can indeed make a profit, even a substantial profit. At this stage, it is more suitable to use the all-in, all-out method;

2. In the bear market stage, investing in the all-in, all-out method at this stage is very risky, and the stock market tends to fall rather than rise. ;

3. In the turbulent market stage, the stock market generally shows a downward trend during the turbulent market stage, so the all-in, all-out investment method will be relatively risky.

Of course, in terms of time, the bull market: bear market: shock market time is 3:1:6. In other words, most of the time it is not suitable to invest in an all-in, all-out manner.

Ordinary investors lack the ability to identify and predict bull markets, bear markets, and volatile markets, and they are even less able to invest in an all-in, all-out manner.

The most suitable investment method for ordinary investors is fixed investment. Fixed investment can not only spread costs and differentiate risks, but also prevent shortfalls during the rising stage, achieving multiple benefits with one stone.

Summary: Investors who like to invest in stocks and like all-in, all-out have a low understanding of stock market investment methods, have no own investment strategy, and have a certain gambling mentality. Of course, this does not mean that the all-in, all-out method is wrong, but it requires correct use and correct execution to achieve profitability.