Why do you say that the most important thing in stock trading is to protect the principal? How to protect the principal?

A big reason for the loss of retail investors is that they just want to make a fortune when they enter the market, and they don't know the importance of capital preservation and how to do so.

First, the importance of protecting the principal. In short, without capital, it is impossible to make a comeback. To understand a simple mathematical knowledge. 65438+ million, loss of 50%, into 50000, but 50000, to return to 65438+ million, need to make a profit 100%! If the loss is 70%, leaving 30,000, you need to make a profit of 233%. Therefore, if you lose more than 70%, there is basically no hope of returning to your capital.

Second, how to protect the principal First, learn the theory.

Because you know nothing about the stock market, there is nothing you can do about the fundamental and technical analysis. You only listen to the news and enter the stock market by introduction and feeling. Losses are inevitable. This business is actually the same. If you know nothing about an industry, will you invest blindly? At least there should be market research and investment plan?

Second, as a retail investor, it is better to choose a good stock or three leading blue-chip stocks in different industries. Those concept hotspots are not the dishes of retail investors at all. Because there is no financial advantage and no technical advantage, why should we play hot and short-term games?

Third, grasping the turning point is also the time to buy and sell. To enter the stock market, you should at least know what a bull market is and what a bear market is. At the end of the bear market, when no one talked about stocks, the technical 250-day moving average just started to rise. Then hold it for a long time until the bull market ends and short when the bear market comes. What are the characteristics of the bull market ending? That is, when everyone makes money and the index rises by more than 70% or even doubles.

Fourth, set a few rules for yourself with strict discipline: don't be a stock in a bear market, wait empty. Only do stocks with excellent performance and an upward trend. If the medium-term trend changes, you must stop.

To keep the principal, the above items are almost enough. The key is to control your hands, otherwise there is no way.

Stock trading, the principal is like a person's life. If there is no principal, then everything is gone. In the market, I often say: if you don't pay, you become half. There is another rule in the stock market: one gains two draws and seven losses. If you can protect the principal, you will beat 70% of the people. So how to protect the principal?

First, learn to short. There is a philosophical saying: the best deal is not to trade. An important reason for the sustained losses of most retail investors is neither the market nor the technical level. In fact, it lies in day trading, and the error rate caused by day trading has greatly increased. Even if you make some money, you will give it to the broker. So, if you learn to be short, you actually learn how to keep the principal.

Second, only make understandable transactions. Stock trading is really a kind of expectation. But if you can have a logical and clear understanding of this expectation, you can trade. If the understanding of this expectation is vague or even ignorant, either your transaction is dangerous. Your ignorance puts your headmaster in an extremely dangerous state, and such behavior is the most harmful to the headmaster. Therefore, stock trading must have a clear and rational understanding, that is to say, I will do it if I can understand it, and I will not do it if I can't understand it.

Third, resolutely implement trading discipline. The trading discipline mainly referred to here is the concept of stop loss. No matter what you do, the first thing to think about is how to set the stop loss line. In other words, I did something wrong. What should I do? This idea must be clear before the transaction and must be resolutely implemented during the transaction. The most taboo is to give yourself reasons, hope and explanation. Only in this way can you effectively protect your principal.

In a word, protecting the principal is the basic principle of a stock market trader. Only by protecting the principal can we maximize the income when the market comes, otherwise everything will be a tree without roots and water without sources.

Only by keeping the principal can we gain a foothold in the investment market. Only in this way can we have the opportunity to deal with the market and have the possibility to beat it. If you don't pay attention to risk control and break even, you will be swept out of the house in a few years.

How to keep the principal?

I think the most important thing to keep the principal is not the unique skill of stock selection, nor the firm stop-loss discipline.

The most important thing for capital preservation is to put your own funds in a comfortable position.

What is the orientation of the freedom of advance and retreat of funds?

From the perspective of positions, most of the funds used for trading are below half a warehouse. We are talking here, in the words of stock friends: you are wasting the efficiency of the use of funds.

Not exactly.

Tao Te Ching said: Thirty pieces make a wheel, and it is precisely because the middle is empty that it can play the role of a wheel. There are vessels made of clay, but because the middle is empty, they can have the meaning of vessels. A house is built by cutting a door and building a wall. It can only be used for living because the middle is empty. This is the role of "nothing"

Only by retaining some idle funds in stock trading can we play the strategy of freedom of advance and retreat in stock trading. If you are completely Man Cang, the heavy position will become a one-way effort that can only go up but not down. Because the position is always not high, so the loss is limited when the judgment is wrong, because there are idle funds to spare, so you can quickly resurrect with blood and find another opportunity to fight again.

From the trading strategy, only invest the funds in a safe stock price or point. Instead of predicting which position may earn more.

This means that funds will not die. Only in this way can the maximum security of the principal be guaranteed. The deadlock in stock trading is that after speculation, the stock price or index has doubled or tripled. Stocks with inflated valuations and stocks at risk of delisting. Although these high-risk stocks and indexes are still soaring, they are still full of temptations. But for the safety of funds, investors must not take risks. Remember, the headmaster will not die. You should only invest in companies with simple business and good development prospects, and stocks that are still being hyped fiercely. Stay away from speculation, embrace undervalued stocks, make long-term plans, and don't care about small losses in front of you. . . .

There has been so little praise in the Q&A recently. Praise will improve my question and answer ranking. Your praise is my motivation to write. I hope I like it better! After reading the praise, I have money, thank you for your attention! The most important thing in stock trading is to protect the capital, which is very correct and I agree with you very much! The three points put forward by Warren Buffett, the first principal is safe; Second, the principal is safe. Third, remember the first two points. Even the most important people in the stock market agree that it is most important to protect the capital by stock trading, and there must be a reason.

Look at these data and you will know why it is most important to protect the principal in stock trading:

The best way to protect the principal is to stay away from the stock market or wait and see. This is the best way to protect the client. But if you stay away from the stock market or wait and see, you will lose the value of investing in the stock market and lose the opportunity to invest in the stock market; So I want to protect the principal of stock trading and don't want to miss the stock market opportunity. I can only protect the principal from the following points.

First: Rational distribution of posts.

People often say that we should diversify our investments and don't put our eggs in the same basket. This is the importance of reasonable position allocation in investment. When to short, when to short, when to short, and never leave Man Cang, stock market risks are everywhere. Once Man Cang is locked, he loses the chance to move.

Second: strict discipline.

Stock trading must recognize the general trend, and the general trend can be done in a heavy position. It is best to wait in a bear market and play in a small position. Stocks also have stop-loss and profit-taking points, especially the stop-loss point is very important, which is the key to protect the safety of principal; That is, the stock trading point has a plan and purpose, when to buy and when to sell.

Third: recognize the general trend and recognize yourself.

Stock trading should conform to the general trend, conform to the general trend, and not go against the trend; At the same time, we must also recognize our ability to stock market. You should be clear about buying and selling stocks. Don't buy if you don't understand, and don't take chances. This is a good way to protect the capital of stocks!

Investment is risky and you need to be cautious when entering the market; This slogan has hinted that there are risks in stock trading. If there are risks, you will face losses. So if you want to find a way to avoid losses, you must ensure the safety of the principal. If you can't even protect the principal, who is qualified to talk about profit? Therefore, the most important thing in stock trading is to protect the principal security, which is very correct!

Many people make money, but in the end they lose money because they don't pay enough attention to the principal.

Only by keeping the principal can you make a profit. The principal fluctuates too much, as if making money. If you do it for a long time, the uncertainty is too great and there is a great possibility of losing money.

Keeping the principal is the basis of maintaining a good mentality, and the mentality of not losing money and losing money is completely different.

Losses can make people fidgety, depressed, disappointed, and negative emotions come and go, while keeping the principal will see more hope.

Keep the principal and you can easily set sail again.

Finally, people who make profits attach great importance to the principal.

Dabao has the habit of making stocks. Every time the profit is too large, he will stop to have a rest and stabilize his mentality, and the process of stabilizing his mentality is also the process of transforming profits into capital.

Because of the large profits, continuing to operate will produce two results, radical or conservative.

Radical because of big profits and want to accelerate capital accumulation.

This kind of radicalism will often cause great losses, because many times it will be the end of the market, and it is easy to have deep or continuous meat cutting if you continue to operate. The best way is to stop, judge the direction, position and mentality of the market, wait for a wave of intermediate callback and rebound, and then make another wave of market.

And this kind of rest is not without operation. Steady stocks, high-quality stocks with no sharp rise in fundamentals are the objects of rest, and there is not much retreat of falling profits. The rising profit will be considerable because of the superposition of the large profit ratio in the previous period, and most markets will have a compensatory increase at the end of the market.

Once the stock is established at the end of compensatory growth, it can continue to run without compensatory growth, indicating that there is still a market in the later period.

In this way, not only the principal is saved, but also the profit is saved, and the profit may be even greater.

For those who are cautious after making profits, it is easy to step on the air. Although many people suggest short positions, short positions in big markets are equivalent to losses.

There is absolutely no need to go to an empty warehouse. If you can make big profits with small losses, remember that short positions are irrational.

Dabao will only adjust positions by adjusting positions, control risks and allow profits to retreat, but it will never allow the big market to be empty. After waiting for the big market for five years, the result was missed, and the mentality was unbalanced and high. Isn't this asking for it?

Feel the risk increase and adjust to low-risk stocks. Appropriately increase the risk ratio after the risk is released. It is enough to resist risks.

15, due to reasonable adjustment, some methods have been used, and even if it plummets, there are good returns. And it is completely melted.

There is no loss in short positions, and there is no gain.

It is not cost-effective to lose the new risk-free arbitrage qualification. It is also easier to be stuck in the middle of the rebound, and constantly adjust the risk of holding positions according to the market to maximize profits and reduce risks.

There is no need to control the position to keep the principal, and there is no need to go to the short position.

So how to judge the risk of individual stocks?

1, learn to judge the risk level of different stocks.

The risk of stocks that are used to ups and downs will not be small, and they need to be avoided after the ups and downs. Stocks with little long-term fluctuation are suitable for hedging. It's actually quite simple. These stocks can be used. If you are profitable, you can buy some low-risk stocks, and there is not much room for decline.

However, the stocks sold have fallen by 30%. After stabilization, if you only lose a few points in buying stocks, you can change stocks. In fact, 20%+ of the profits have been saved, and a few points and a dozen points are allowed to retreat. Of course, it would be better if you made a profit later, and you have actually earned 30%+ or even more.

But these losses and profits are incalculable, because long-term operation, profit losses offset, profit changes will not be too great.

2. Looking at the increase, the callback demand with excessive increase will be greater, and there is actually huge profit and loss space.

For long-term stable growth, it is good to hold it after buying, which is worth doing. If the increase is too large, the risk will be released and re-entered.

5 times 10 times increase and 50% callback are especially common. And this down cycle, you can completely operate low-end stocks to make a profit, and then slowly step in and eat a counter-pumping market.

However, many retail investors can't double the market after intervention, but there is a risk of falling by 50% at any time. Learning to hedge will reduce this risk.

Dabao often says that the stock market can't be completed in one day. It will give you enough time to switch positions and exchange shares, and you don't have to sell all the shares at once, and you don't have to change all the shares at once. Take your time and avoid risks. Continue to soar, the profit will be good, continue to sell slowly, and buy slowly. Finally, you will find that such a slow exchange, compared with a sale, not only avoids risks, but also increases profits.

We must pay attention to keeping the principal and profit, and find ways to rest when it is time to rest, so as to increase the possibility of profit, but don't operate aggressively or open positions.

Buffett's teacher Graham actually made a more in-depth analysis of this issue.

If you invest rather than speculate, you can't overemphasize the need to protect the principal.

Graham said a word about this, hoping that all friends who invest in stocks can keep it in mind:

Two important principles of investment: first, don't lose money; Second, don't forget the first rule.

The principal is so important to anyone, how can we keep it?

You should know whether you are investing or speculating. Graham's definition of investment is: after in-depth analysis, investment can promise the safety of principal and provide satisfactory returns. What fails to meet these requirements is speculation.

So speculating in stocks is not necessarily speculation. Speculation is usually buying stocks, with the aim of making quick money and gambling.

If it is for the purpose of investment, it is necessary to invest time to analyze and investigate the companies behind the stock. In order to make the principal more secure, we must also ensure that the price we buy has a certain margin of safety, that is, the best price is cheaper. If you don't have such a good chance, at least you can't chase after the high price, so if the stock price falls for a short time because of misjudgment, you won't necessarily lose money.

After all, the investment will not always be correct, and the extreme emotions in the short-term market will sometimes be extreme, so be sure that the company you buy is a good company, and then the price you buy is safe enough.

Buy a company that you can see and understand. Everyone has his own ability circle, that is, everyone's ability has boundaries, and the ability without boundaries is actually not an ability.

So no one can understand all the companies.

To understand a company, a deep understanding of the industry and related technologies is the most important. People in the industry usually know the relevant companies best and may have a very intuitive understanding of the company changes in the whole industry.

Secondly, we should have a clear understanding of the operation of a company. Each company's operating conditions, management capabilities, market competitiveness and so on are different, and different companies need different analysis to understand a company in depth.

Finally, you should have the ability to read the annual report of the company. In fact, the prospectus is the most detailed information, followed by annual reports and periodic reports. To understand this information, we should not only look at the superficial financial indicators, but also analyze whether the values that constitute the financial indicators are appropriate. For example, if we look at the net profit rate, we should at least analyze whether there are non-recurring gains and losses, whether there are artificially inflated profits, whether there are high profits but poor cash flow, and so on.

Only by knowing the real core value of a company, predicting its future development, buying at a reasonable price and making long-term investment on this basis can we basically make money on the basis of ensuring the safety of the principal.

Warren Buffett has a famous saying: "The three most important things in investing are to keep the principal, keep the principal, and remember the first two points." In the stock market, a gentleman does not stand under a dangerous wall. The first principle is risk control. To make money, you must save your life first.

Principle of maintaining principal:

1, stop loss first, not only know how to stop loss, but also know how to do it. After buying a stock, you must set a stop loss point. If it is below, it must be resolutely implemented. If you are lucky, hesitation will only make things worse;

2. Never over-trade. Under the premise of not affecting family life, arrange the money invested in the stock market reasonably. Never misappropriate the money for children's schooling, parents' pension, medical treatment or even the house. Don't go to finance, don't borrow money and don't borrow usury.

Never trade against the trend. If the general trend is not good, let the funds rest. When the market is good, let profits run like hell.

4. After making a profit, we should set aside some profits for family life, and the idea of rolling around cannot exist;

5. You can't hold too many stocks, and you can operate up to 3 stocks within 500,000, which can reduce your own operational mistakes;

In the stock market, if you can keep the principal, you have beaten 90% people. Over time, you will definitely become one of the few people who make money in the stock market.

The most important thing in stock trading is capital preservation, which is true, but in practice, what kind of way people choose is the key.

As long as it comes to this topic, many experts will jump out and say that the way to protect the principal is to cut the meat and stop the loss. If you can't cut your losses, it proves that you are not a qualified trader. Almost all foreign technical textbooks are telling you: stop loss resolutely.

I don't want to argue here. I just want to say that after you heard these truths, you did it. You often stop loss, but did your profit really run away?

After listening to the master's instruction, you began to make technical stop loss. The stock price broke and I cut it; If it is lower than the purchase price 10%, I will cut it; The market is broken, so I cut it.

If you chop and chop like this, by the end of the year, there will be few principal.

Any stock, no matter what price it is bought at, theoretically has 30-50% downside.

If you use technical stop loss, you will find that no matter what kind of stock you buy, it will always be a stop loss, and there is no perfect stock in the market.

The disadvantage of using technical stop loss is that it encourages you to change shares constantly, which violates the principle of "single-minded" in the market and is the biggest bane of investment failure.

If you don't care about your frequent stop loss, or even take pride in it, it means that your investment habits have been bad.

I never use technical stop loss, I only use logical stop loss. If I buy a stock and get stuck, as long as the logic before buying is still there, as long as it is still in the bottom range, as long as its fundamentals have not deteriorated significantly, I will not stop loss, but I will increase my position and buy. There is a logic here, the market has no obligation to let you buy at the lowest point, and the market has no obligation to let you buy and rise.

If you find that the logic of buying at the beginning no longer exists and the fundamentals of the stock have deteriorated seriously, then I will stop without hesitation, even if I am trapped by 50%.

This requires you to be cautious before buying stocks, consider all kinds of market conditions, choose the best stocks through comparison, and find the low points of the market and individual stocks to buy.

Hello, I'm the president, a trader of an asset management company, and I'm dedicated to 16 sharing my experience in stock investment. Today, let's answer your question in a simple way.

In any industry, as long as you don't have correct values, the final result will be different. For retail investors in the stock market, the main thing is to make a profit, which is like having an attack on the battlefield. Although it is said that the brave win in the narrow road, you should also weigh your own weight.

At present, most of the10.7 billion retail investors in China have made contributions and entered the stock market with seven dreams and three self-confidences.

Some of them plan to realize their ambitions in the stock market, some plan to change their lives in the stock market, and some plan to realize the freedom of life wealth through stock investment and wealth management, but the ultimate goal is to earn other people's money.

Recently, in the process of communication between investors and presidents, there is a classic saying that if you don't make money by investing in the stock market, others will definitely make money.

Because retail investors have different understanding of the stock market, different retail investors have profits and losses at the same time, and the same retail investors also have profits and losses at different times.

In the process of stock investment, according to the experience of president 16, learning the knowledge of stock investment is the only way to make a profit.

Maybe some people are lucky enough to make money as soon as they enter the stock market, but no matter how lucky they are, they can't stay with you for a lifetime. Rich knowledge and experience are the key to your life.

At the same time, the market thinks that it is impossible for an investor to make regular losses in the stock market, which does not conform to the logic of stock investment and may be caused by mentality or other reasons.

Why should stocks keep their principal? For most retail investors, entering the stock market is to make money, but they forget that stock trading needs to be gradual. Keeping the principal is the 1 step of stock trading.

So we see many uncles and aunts go to banks to buy investment and wealth management products, or go to asset management companies to buy related wealth management. The most important consultation is whether to protect capital and manage finances.

I still remember Luo Yonghao of Hammer Technology once said that we only sell mobile phones to make friends and make money in the process of making friends.

This shows that we invest in stocks in order to learn the knowledge of investment and financial management, and make money by the way in the process of learning.

Many retail investors can't explain why stocks should be guaranteed first. Here, the president gave a simple example to illustrate the importance of this matter.

For example, if you have 1 10,000 yuan to invest in stocks, you must be worry-free on the premise of making money. If you lose 500 thousand on the premise of bad environment, then your principal is only 500 thousand

At this time, if you want to earn 6.5438+0 million with 500,000 yuan, you actually have to double it to achieve it, which is the same as when you took 6.5438+0 million yuan to become 2 million yuan.

But in fact, according to your investment situation, you only lost 500,000 yuan, which is 50% of the original principal, which is virtually related to the proportion of your money.

It is difficult to earn 500,000 yuan from 1 10,000, let alone 500,000 yuan from 500,000 yuan, which shows the importance of capital preservation in stock trading.

Generally speaking, the ultimate goal of entering the stock market must be to make money. No one wants to make wedding dresses for others in the stock market, and in this process, we need to understand and learn to improve our cognitive range.

Investing in stocks to make money is like going up the mountain, and losing money is like going down the mountain. I believe everyone can know which is easier, so keeping the principal is the step of 1, and it is also the most important step to invest in stocks.

Not to mention the importance of the principal, I will talk about how ordinary investors can keep the principal: 1, and get rid of the retail thinking. As an ordinary investor, it is common for Man Cang to exchange shares frequently, chasing up and down. But the result is often that it rises when selling, falls when buying, and is hit at both ends. The above is a typical retail thinking, and the investment behavior led by this thinking just falls into the trap of the main arrangement. The best way for the main force is to pick up chips at a low level when retail investors are afraid and sell them when retail investors are crazy about chasing up. 2. Reasonable distribution of posts. This is a cliche. Don't put eggs in one basket. If your capital is 6,543,800 yuan, you can rationally allocate stocks in different sectors according to 5: 3: 2. This can refer to the fund's position allocation plan. 3. Obey the market trend. Obedience here is absolute obedience. In the investment market, the trend is iron discipline. The trend is upward and firmly grasped. The trend is downward and resolutely short. Many people lose money because they don't obey the trend and think they are right. I can tell you what you think is worthless.