After losing money in stocks, why do many people prefer to be trapped rather than cut off their flesh?

Stock investors will understand the meaning of holding and cutting. Holding is only a loss of market value, not a loss of money, while cutting is an actual loss of money. There is a big difference between the two. Because of this, many investors treat stocks as losses. They don't want to choose to be trapped, especially small and medium-sized investors.

The meanings of being locked up and cutting off the stock are different. Why do many investors prefer to be locked up rather than cut off the stock? There are only two real internal reasons, namely psychological factors and numerical influences. This is the root of the problem.

First of all, let’s analyze the influence of psychological factors. Being stuck in a stock means temporary losses. The stock will rise and turn losses into profits. Being stuck is actually a semi-surrender. The possibility of turning defeat into victory.

But the meaning of cutting meat is different. Stock trading and cutting meat is tantamount to surrender, tantamount to admitting defeat. There is no situation of turning losses into profits at all, only the opportunity to overthrow and start over. Therefore, many investors will choose to semi-surrender rather than truly admit defeat. The psychological factors of investors have a particularly large impact.

Then, let’s analyze the impact of numbers. I believe everyone knows that the market value of a stock is actually just a virtual number. This number is cashed out after it is recommended to be sold and transferred out of the bank. It is real money. As long as it is repaid If you hold stocks, it's just market value, a bunch of fictitious numbers.

Know that the market value of a stock is a fictitious number. When a stock loses money, if you are just stuck, you can also see how much money you have lost on this stock, and there is also an accurate statistic; investors will Do you know how much money this stock lost? On the contrary, after the stock is cut, the loss will not be displayed in the shareholding details, and the record can only be queried in the delivery order.

Therefore, the numbers of holding and loss amount show that there is no interest rate after cutting off the meat. Many people will choose to hold on and remember how much money they have lost. I will come back to get revenge. Similarly, why do many investors like to keep 100 shares when selling stocks? In fact, the principles are the same. They all have a recorded meaning. To put it bluntly, it is determined by psychological factors.

Secondly, in order to explain in more detail the underlying reasons why many investors would rather hang up than cut off their stocks, let’s analyze it through a practical case. The specific details are as follows.

Give an example

For example, Zhang San has 100,000 yuan and buys a certain stock in full on one day. After buying this stock, the stock price falls all the way. When the stock price falls to 5 yuan means that Zhang San’s actual loss has reached 50%, and he needs to increase by 100% if he wants to recover the capital.

If Zhang San chooses to hold on at this time, at least he can fully see the market value of 100,000 yuan. Although it shows a loss of 50,000 yuan, it is still possible to recover the 50,000 yuan. On the other hand, if Zhang San sells his meat at 5 yuan, there will only be 50,000 yuan left in the shareholder's account. In fact, he has lost 50,000 yuan, and the loss of 50,000 yuan has evaporated. This is the difference between holding up and cutting the meat.

Finally, through the above analysis of the meaning of holding up and cutting off stocks, combined with the actual situation of stocks, and the psychological factors of retail investors, we can find that many investors choose to hold up rather than cut off their shares. The real reasons behind this It is the result of the influence of psychological factors and numerical factors.

One thing to always remember in the stock market is that being stuck is temporary, and there is still a chance of getting back the original investment, and there is still a fight for a turnaround; cutting off the flesh means admitting defeat, and there is no possibility of getting the original capital back, and if you want to turn around, you can only push back and start again. Therefore, after retail investors understand the meaning, the answer to this question is easily solved.