Amateur investors often confuse their role in the market with professional financial investors. Many amateur securities investors don't understand the essential difference between amateur investment and professional financial investment, but in practice they play the role of both amateur investors and professional financial investors. As everyone knows, how much risk does it take.
Amateur investors are confused with professional investors in the concept and method of investment operation, but the level is not at the same level as professional investors. The securities market itself does not create value, and loss-making investors provide income sources for profit-making investors. In this way, amateur investors who do not know their own market positioning, investment strategies and methods, and whose level is far from that of professional investors, bear huge investment risks. Therefore, the key issue is that amateur investors should make full use of their strengths and avoid weaknesses according to their own specific conditions, and make clear their own market positioning investment strategies and investment methods.
Second, observe life carefully.
As an amateur investor, we must first master the basic knowledge about investment, such as some basic knowledge of economics, basic knowledge needed for financial analysis and technical analysis, and so on. Secondly, it is best to invest in enterprise securities with the vision and mentality of investing in industry, just like investing in small grocery stores on the roadside. Because people are engaged in various occupations in social life, they will have a clearer understanding of the industries they are engaged in or engaged in than others, and they will be more familiar with these industries than others. No matter what they have done, whether they are ticket sellers or factory workers, they will contribute to people's familiarity with a certain aspect of society. At the same time, we can also understand a certain aspect of social life through careful observation.
Therefore, it is safe to invest in good quality stocks in industries you are familiar with; Second, through observation in life, we can judge the operation and management of a listed company, sell shares of listed companies with poor performance, buy shares of listed companies with good conditions, and share the benefits brought by enterprise development. Buffett in the United States is a successful example of adopting this method. When he was a child, he sold newspapers and was familiar with newspapers and their news fields, so he invested in areas he was familiar with instead of entering areas he was unfamiliar with.
Three, the four essential elements of professional investors
A strong desire to win
The stock market is like a boxing ring with fierce fighting, but it is different from the boxing ring as a competitive sport. According to the weight and other standards, the boxing ring divides the players into different heavyweights, and the competition is only held between the players of the same heavyweight. However, the securities market is different. Investors of all levels and levels are playing in the same venue, and everyone is playing together. Heavyweight, Subheavyweight and Lightweight all compete together, including Tai Sen and holyfield. Different from the boxing ring of competitive sports, the securities market is not divided into different markets according to levels, that is to say, there is no amateur market, professional market and top expert market. If you don't bow forward hard and say that I'm not practicing halfway, I'll do it and I'm sure to be beaten up by others. In the securities market, high-level investors earn money from low-level investors, but if they can only surpass themselves and fail to reach the high level, they will still lose to others. Therefore, as a professional investor, they must first have a strong motivation to become top players. It doesn't matter if you can't be a top player in the end, but this powerful motivation is indispensable.
Learn to master.
A solid foundation is another factor for the success of professional investors. It is necessary to master all kinds of knowledge needed for securities investment comprehensively and deeply, and to be able to achieve mastery through a comprehensive study. The basic things are not solid and can't go far. Be sure to know the knowledge of each school. After understanding, in most cases, they are actually telling the same truth from different angles and with different language systems. For example, what's the difference between internal boxing and external boxing? There seems to be a big difference when you don't get started, but if you really master its essence, the difference is not big. At the highest level, the two are essentially the same. Only at this time, with this feeling, people feel that they can skillfully use boxing and use its basic truth and essence, otherwise it is often strokes, imitation and strokes.
Systematic investment method
Successful investment needs a scientific and systematic investment method. Successful investment not only needs to master the basic laws of investment, but also has solid basic knowledge, which is actually the way scientists look at problems. As a practitioner, on the basis of understanding the basic laws, we should also pay attention to a set of systematic methods of specific investment. Some people are also developing some methods, which are sometimes very philosophical and not necessarily all right. The specific investment method is not a magic weapon to defeat the enemy, but a secret weapon to conquer the world, and it is not omnipotent. Because the biggest enemy of investment is yourself and human weakness, the important role of systematic investment method is that it can help you find, grasp and control the negative impact of human weakness on investment. Something with an objective system is better than nothing. Because when people are controlled by their own human weaknesses, they often can't help themselves. Investors can remain rational when thinking about problems, but they are often irrational when taking concrete actions.
For example, before watching a movie in the audience, everyone will hold a forum and ask them what to do in case of emergency. Everyone will say "orderly evacuation" rationally. But when it comes to calling the police, especially when the smoke is on fire, everyone starts to squeeze desperately, leading to disorder, even stepping on each other and squeezing each other, which may make no one get out. In fact, people often do this in the securities market. People may be rational when they have nothing to do with themselves, when they need to make general judgments, but when they need to make investment decisions and decide when to buy or sell, they are very easily influenced by emotions. The original idea is useless and controlled by emotions. The investment method developed objectively and systematically can help you overcome this kind of harm quite effectively. When you want to do this, it tells you: no, you want to do that. At least it can warn you to think about whether it is right or not, instead of doing it on impulse.
Scientific investment system is a complete investment rule system, including a series of clear and specific decision-making rules to determine entry point, exit point, re-entry point and re-exit point. We should make our investment system clear and orderly, instead of just staying in a subconscious state and constantly modifying our investment system with the changing statistical characteristics of market data.
Good psychological quality
The key to successful investment is to control one's own human weakness, and make unremitting struggle with it to hone one's excellent psychological quality in practice. Like any other industry, when a person wants to reach a higher level of investment, he will find that his opponent is yourself. Really reached the level of top experts, professional skills are the same, that is, the game of psychology and personality.
The biggest trap or risk in investment is that the investment itself will tempt you to break out at any time, showing human weaknesses, including greed, fear, conformity, selfishness, face, emotional instability and so on. It will make you make mistakes in judgment through the role of your human weakness, which is very important. Therefore, investment is ultimately a question of being a man. "Greed" and "fear" are the most harmful weaknesses of human beings and need to be overcome in investment. "Greed" is self-evident in most people. Greed for money makes people make one mistake after another when investing, which is most obvious in the commodity futures market. Another manifestation is the desire to get rich overnight. This kind of psychology makes people buy and sell frequently and fall into the trap of excessive trading; "Fear" is manifested in the fearlessness of the market and the fear of losing benefits for oneself. This weakness of human nature makes people buy even in the face of a market that has risen very high, regardless of the fact that the market is becoming more and more fragile. However, in the case of a sharp drop in the market, they are afraid of the end of the world, unable to escape, and sell in large quantities.
Besides, people are afraid of losing face. Why did Alison, a foreign exchange trader at Bahrain Bank, cover up the losses in the transaction? Because we dare not admit our mistakes, small mistakes turn into big mistakes, cover-ups become crimes, and the century-old financial "building" collapses. Why do some people sit in a bottomless trap and don't want to admit their mistakes, because admitting mistakes will lose face, and some people will say that they lost, so the harm comes from the weakness of human nature. The way to control human weakness is to cultivate one's own morality. Reading is one of the means. Reading is mainly to learn lessons from the previous experience and get warnings about what not to do and what not to do. The main method is to constantly reflect on yourself in practice, and often reflect on whether you are psychologically wrong and what you have done wrong. In this way, the negative impact of human weakness can be controlled.
The stock market is a psychological purgatory, and the winner is strong! ! !