Shock! Why do 90% of retail investors always lose money? The shocking truth behind it
In capital markets, wealth does not fall from the sky, but is redistributed among different investors. The harsh reality is that 90% of retail investors are in a state of loss, which is no coincidence, but rather influenced by their behavioral habits.
Many retail investors overly focus on potential returns while ignoring risks. They blindly use high leverage, fantasizing about getting rich overnight, but never set stop-loss points. Once the market trends contrary to expectations, a significant loss can wipe out all previous profits.
Some retail investors treat the trading market as a casino, enthusiastically chasing popular assets with soaring prices, blindly following the trend during market euphoria, completely disregarding the underlying risks. They lack a systematic trading plan and act solely based on intuition and luck. Professional investors, on the other hand, patiently wait for high-probability investment opportunities, strictly follow trading strategies, and are not swayed by emotions.
The lack of emotional management is also a significant reason for retail investors' losses. When they incur losses, they are eager to turn the situation around, falling into "revenge trading"; when they make profits, they become overly confident and blindly increase their investments. Emotions drive their decisions, leading them to frequently make mistakes in trading.
If you want to become one of the 10% of profitable investors, you need to prioritize risk control, develop and strictly implement trading strategies, and eliminate emotional trading. At the same time, recognize that the market is filled with uncertainty and approach changes with probabilistic thinking.
In this game of wealth, can you break through yourself and become the last winner laughing?
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