Why are ordinary people not suitable for stock trading? There are two main reasons, as follows:
First, the stock market itself.
The A-share market is still in the growth stage. Compared with the mature international stock market, there are still many defects in China's A-share market, including excessive financing, imperfect system, lack of attention to investment return and strong speculation.
1.It is an indisputable fact that A shares pay too much attention to financing. The financing function is inherent in the stock market, and financing has become the mission of A shares. The most typical thing is that the issuance of new shares has not stopped, and new shares are issued almost every day. The issuance of new shares has become the norm, and ordinary people will only pay for the issuance of new shares when they come in for stock trading.
2. The system of A-share market is really imperfect, and there are still many systems that need to be further improved in order to make A-shares develop healthily for a long time; Ordinary people are faced with an imperfect stock market, and it is particularly difficult to make money in such a market; Take the trading system as an example. The mature stock market is T+0, while A shares are T+ 1. Such a system will become the binding force of ordinary people's stock trading, which will restrict everyone from trading freely and how to make money.
3.a shares pay too little attention to the return on investment. It is difficult for ordinary people who come to the stock market to make money, most of them are losing money, and they have become receivers themselves; For example, the profit-loss ratio of A shares is "seven losses, two draws and one profit", that is, 90% of shareholders are losing money; Then there is the fact that the stock market is short and the bear is long, and the stock price rises slowly and falls quickly. These are the results of not paying attention to the return on investment.
4.a shares are particularly speculative. The market index, sector index and individual stocks all have a common feature, that is, how to rise and fall; For example, taking the Shanghai Composite Index as an example, the market was more than 3,000 points more than a decade ago, and it was still more than 3,000 points more than a decade later; Secondly, major shareholders, institutions and hot money pursue short-term interests in the stock market, which makes the stock market particularly speculative.
Therefore, when ordinary people enter the stock market, they face the problems of focusing on financing but neglecting returns, imperfect system and strong speculation. These four unfavorable factors are enough to prove that ordinary people are not suitable for stock trading.
Second, shareholders' own factors.
In addition to the unfavorable factors in the stock market, the most critical factor for ordinary people to lose money in stock trading is their own factors, including lack of professionalism, always wanting to get rich overnight, not allocating positions, and having a bad mentality.
1. Ordinary people are blind to the stock market. I believe many people don't even know what stock means. Apart from the K-line and technical indicators of stocks, they know nothing about other fundamentals and news, and have no professional knowledge at all.
2. Ordinary people come to the stock market to speculate, and their biggest dream is to make money, and they want to make quick money, preferably the kind that gets rich overnight; Buy on dips today, sell on rallies tomorrow, and earn a few points every day. As a result, I didn't make any money, paid a lot of stock trading fees, and finally lost money.
3. I believe that many ordinary investors, whether Man Cang or Man Cang, will not allocate their positions reasonably, and will never use their positions to ensure the safety of stock trading; Not allocating positions will only increase the risk of stock trading, as long as people who cannot allocate positions are not suitable for stock trading.
It is normal for ordinary people to have a bad attitude in stock trading. The biggest drawback is that they can't get the stock. When stocks fall, they will immediately cut their meat and then chase other strong stocks; On the contrary, stocks will sell quickly when they rise, and they can't wait to cash in as long as they make money; The mentality of ordinary investors is really bad, and their emotions are easily affected by the fluctuation band of stock prices, which leads to an increase in stock trading losses.
Based on the above analysis, we know that ordinary people are not suitable for stock trading, mainly due to market factors and their own factors, such as financing, return, system, speculation, professionalism, loss-making, regardless of positions, and bad mentality. These eight factors are enough to prove that ordinary people are really not suitable for stock trading, and it is best to stay away from the stock market.