1. Day trading

Many people who have just entered the market may have the idea that they should engage in short-term work with less money. Because they think that short-term money is faster than long-term money, if we can catch the ups and downs every day, it won't be long before wealth will be free.

Here, the three or four gentlemen say the probability of success, regardless of the extra cost of intraday trading.

For example,

Investor A can achieve a success rate of 90% every short-term operation (this is very powerful), but when the investor does the same short-term operation for 10 times in a row, then the probability of the investor winning is 34%. If the number of operations reaches 20 times, the winning probability is reduced to 12%. (Remember, this is still an investor with strong short-term operation. )

With the increase of the number of transactions, the winning probability will be further reduced. Therefore, if you want to succeed through day trading, it is a road that few people can succeed.

Since it is a very small probability event, as an ordinary investor, San Sijun thinks it is unnecessary to study this direction. Because if you want to make money through investment and work hard in the direction of high probability, the success rate will be much higher than that of low probability (short-term operation).

Also, day trading will spend a lot of time and energy on the trading itself. In this process, your life and work will inevitably be affected, and then you will lose your investment intention.

2. I don't know how to stop loss

I believe that many people will encounter such a process in the process of investing in funds. They will sell profitable funds and then continue to hold funds that are still losing money.

In fact, as we all know, sometimes the fund to be sold is exactly the one with a book loss.

For example, active funds, if the fund manager leaves, or the investment style of the fund changes greatly, these will make the fundamentals of the fund change greatly. So even if you lose money now, you should carefully consider whether to hold it or not.

For example, there are also fund heavyweight stocks (multiple stocks) stepping on thunder. Perhaps this fund has had a good performance, but stepping on thunder will not change because of your account loss. So at this time, you must also pay attention.

chase after go up kill drop

Chasing up and down is also the reason why many investors lose money. Simply put, what are the hot topics and concepts in the market at present? Because these investors think these concepts or themes are really good and look promising.

In fact, San Sijun also used the Shenwan Activity Index (80 1862) to introduce the harm of chasing up and down. Judging from the historical trend of the index, the index finally fell from19991000 on February 3rd1000 to17 years1October 20th.

So chasing up and down is also a reason why investors don't make money.