Why do retail investors lose money by doing short-term work?

The reasons for the heavy losses of retail investors are as follows:

1, will not pick stocks; Retail investors' understanding of stock knowledge is not thorough enough, and stock selection is not accurate enough.

2. The position will not be reasonably controlled; Retail investors are used to holding a heavy position in a stock, and once the stock has significant bad news, it will face huge losses. Retail investors should reasonably control their positions to cope with the special circumstances of individual stocks.

3, the operation is too frequent; Holding a large number of shares and operating too frequently. For example, buying today and selling tomorrow will increase transaction costs and may miss the rising stock market.

4. No trading system has been formed; Although retail investors read many stock books and learned many trading skills before entering the market, they did not form their own trading system. Blindly operating stocks according to the trading methods in books may lead to too frequent operations and increased losses.

5. Trust the news too much; Market news has certain reference function, but don't trust the news too much.

6. Wrong investment psychology. In the process of stock investment, retail investors do not develop a good investment psychology, and treat investment with "gambler psychology", that is, they want to earn back the lost money and gain more profits after making money, so that their possessiveness can be further satisfied, which often leads to more losses for retail investors.

If you need to know about the stock market, you can log on to Ping An Pocket Bank APP- Finance-Stock Futures-Securities Service for information.

Tips:

1. The above contents are for reference only and do not make any suggestions. Related products are issued and managed by corresponding platforms or companies, and banks are not responsible for product investment, redemption and risk management;

2. Stock investment fluctuates with market changes, and it may go up and down. There are risks in entering the market, so investment needs to be cautious. Before making any investment, make sure that you fully understand the investment nature and risks involved in the product, and then judge whether to participate in the transaction by yourself after carefully understanding and evaluating the product.

Reply time: 2021-12-16. Please refer to the latest business changes announced by Ping An Bank in official website.