A fable reveals the reasons for the loss of traders

In the past, a shepherd led a goat, riding a donkey into the city to go to the market.

Three liars know, want to lie to him. The first liar by the shepherd ride on the back of the donkey drowsiness, the goat neck bells down on the tail of the donkey, the goat took away. The shepherd went back and found the goat gone and was busy looking for it. Then the second liar came, enthusiastically asked him what to find. The shepherd said the goat was stolen and asked him to see no. Liar casually one finger, said to see a man holding a goat from the woods just walked over, prospective that person, go catch it. The shepherd rushed to the goat and handed the donkey to the “good man”. When he came back with his hands, the donkey and the “good people” naturally disappeared.

Shepherd sad, while walking while crying. When he came to a pool side, found a person sitting in the pool side, crying than he was sad. The shepherds are strangely: are there more unlucky people than me? Asked the person to cry what.

The man told the shepherd, he took two bags of gold to the city to buy things, rest in the water rest, wash his face, but accidentally put the bag out of the water. The shepherd said, then you go fishing soon. The man said he would not swim, if the shepherd gave him fishing, willing to give him 20 gold coins.

Shepherd a pleasantly surprised, thought: it erupted, sheep and donkeys, although lost, but here may be 20 gold coins, loss of all the back there are still surplus ah, he quickly pulled off the clothes jumped off the water. When he was alone with his hands from the water to climb up, his clothes, dry food is gone, only a little money is still in the pocket of clothes filled with it.

Summary of the reasons for the loss of the shepherd:

1, no accident before the carelessness;

2, after the accident panic;

3, after the loss caused by anxious to make losses.

Paralysis, panic, eager to make up for these losses is the result of serious losses of investors, the three root causes.

One, paralysis




1, in the strong market, profitable investors are often easy to carelessly, they are usually due to speculation and become proud of the investment thinking is not careful and calm, greedy expansion, to their own unrealistic profit targets , Will eventually inevitably encounter investment mistakes.

2, in the weak market, the hands of investors in the hands of the trend of defensive stocks vulnerable to defensively, investors are often the hands of the contrarian performance of the defensive stocks are deceived until the defensive stocks Budie only regret it.

3, in the low market, investors are easy to careless. At this time most of the investors have been deepened by the stock market, the stock market to take indifferent attitude, there are funds investors are also affected by the long-term bear market, that the market short-term profit opportunities are not big. But the historical experience shows that the market is often in the vast majority of people when the general outbreak of paralysis.

Therefore, all investors in financial markets, whether large or small, whether short positions or full positions, whether it is short-term or do midline investors, as long as one day did not completely leave the market, one day can not be careless. It can be said: the effect of paralysis is the culprit of the loss of investors.

Second, panic-stricken

Investment market is full of uncertainties, the impact of the market environment and conditions are changing, investors want to be completely without any errors is impossible, the key is to correctly respond to mistakes, the use of the correct Method of risky, which requires investors to have a good psychological quality and stability of the investment mentality.

Therefore, the first time there is a mistake to do is not panic, in the face of investment mistakes, panic not only do nothing, but will further expand the loss. At this time, to calmly analyze where the problem lies, what method should be used to make up, what way to adapt. Do not be emotional to break the broken pot, or blind cover, or easily flesh, chaos to do a gas, it will only make the situation worse and worse, so that can not clean up. Investment mistakes are not terrible, the so-called “threatened to see the non-blessing blessing,” do not simply think of a mistake is a disaster, if it becomes lawful, then mistakes may also evolve into an opportunity.

As a result of investor panic and a large number of panic disk is often one of the important signs of the stock market bottom, an important law of securities investment is anti-market operation, if a stock because of a major negative blow to panic panic Out, but the stock price in the face of a strong selling can still survive, which fully shows that the main funds in the use of investors panic atmosphere, secretly in the positive cargo Jiancang. Accordingly, it can be inferred that the stock has become the strength of the dark horse.

The main washing dish, often use the aggressive Xi Pan way, the investors scared panic and take the road and flee, the main opportunity to absorb the discarded chips of retail investors, so that investors have lost a just started a dark horse.

Third, eager to make losses

Anxious to make up for losses is an investment that investors are most likely to expand after losing their losses. Because investors are eager to make up for losses, they often take a very risky and radical approach to investing, most notably short-term, Convert, do not speak the principle and skill to flatten.

Although the conversion and flattening is an effective means of making up for the loss, however, the conversion and flattening have strict application principles, techniques and application conditions, can not be blindly free to use. In the bear market, a lot of investors is not understand the specific application of skills in the case of flat use of flat technology, resulting in investment funds evolved from shallow to deep sets, and finally into a full set.

Some investors in the stock market, because of a momentary mistakes, resulting in heavy losses, its anxious to make up for the loss of feelings can be understood. However, any investment behavior must be adapted to the prevailing market environment and trends, only homeopathy, can make a difference. When the trend is running up, when the market does emerge a lot of profit opportunities, is the best time for investors to turn around. If the stock market adjustment, blindly and trend recalcitrant, frequent contrarian operation, can only make the loss more serious.

Anxious is the biggest reason for the loss of traders, Shigekura is anxious, there is no signal open positions are anxious, frequent trading is anxious. Face the market must put the mind flat. China has an old saying: “not into the emergency”. Patience, the market will always give you a return.