What Is The Proposition That Retail Speculation Is Doomed To Failure?

Wall Street's speculation on stocks is based on basic economic data, such as growth figures in related output, employment, wages, or manufacturing pformation, consumer market data, and international market demand.

Wall Street also often hype the Chinese concept stocks and domestic stocks related to China's market demand.

But in terms of speculation, the real leader of Wall Street is still some larger hedge funds. Few retail investors are involved in such frequent short-term speculation. The main reason is that the retail market in the US stock market is relatively small, and the other is the short-term speculation in hedge funds. In fact, there is a more stringent sense of profitability and stop loss expectations, which will not be confused by the concept itself.

For China's market dominated by retail investors, there is a huge potential risk in pursuing hot spots and speculation in the stock market.

In fact, the "concept market" is often initiated by the organization, and it often ends with the profit making of the organization. Although there are a large number of retail investors, it is difficult to step in and respond rationally to both the rhythm and the specific stop and loss.

In addition, from the long-term trend of stock market, most of the so-called concepts are ephemeral, and the return of speculation can often depend on your awareness and speed in drumming and spreading, rather than really finding out the value of certain stocks or plates.

Specifically, for most Chinese investors, the concept of speculation in the stock market faces three main risks:

For example, when the profit is up to expectations, no matter whether the concept is continuous or not, we must evacuate as soon as possible. If the concept of speculation fails, a stop loss position will be set up. Once it is touched, it will also decisively leave the field.

Retail investors generally follow market sentiment, mainly depending on news Hotspots or changes in market prices over the past one or two days to decide whether to make profits or stop losses.

This kind of blindness of conceptual speculation has led to the serious asymmetry of information and manipulations among retail investors in terms of conceptual speculation compared with institutions. In most cases, it is doomed to failure.

Stock speculation is relatively random, or because a policy, a phenomenon, or from an event, under normal circumstances, this speculation does not have much correlation with the market trend, but because of the overall market expectations, the objective background of the market determines the continuity and risk of the concept.

In April this year, due to the rapid growth of China's high speed rail foreign signature, a number of high - speed rail lines in China, in addition to the hot state, the hype of China's north car once reached a climax, but as the whole stock price was very high at that time, with the adjustment of the large plate, most of the frying writers had been deeply stuck.

In fact, such examples are everywhere.

At present, although the market has a certain degree of heat, the number of accounts, over-the-counter funds and field financing has begun to rebound. Many retail investors have been eager to try, and many agencies will certainly not let go of this opportunity. The institutional chasing and retail chasing have formed a heated speculation on the relevant hot spots.

But the problem we have to consider is,

Whether or not the confidence of most investors has recovered and whether the real economic data supporting this confidence has also improved significantly.

I can't see for the time being.

The basic supporting force can generate the V font inversion.

Especially for such a very vague concept of "along the way" and so on, how can the specific profits be landed in the infrastructure sector? How big is the holding plate in the relevant stocks? How many quilt institutions and Oto Masa are waiting for the retail investors to rescue them?

The most commonly used method of speculation is to find the leading stocks in the relevant sector, but since the leading stock has already had a small increase or higher share price per share, more retail investors will find a lower or lower share price.

There is a risk in this way of thinking, the same good.

For different companies, it may be a completely different result.

A more open policy and more positive stimulus may lead to more intense competition in the industry, which will not only break the original market structure, but also lead some industries to take more market measures to boost the operation cost of the whole industry. For some of them, the business environment has become worse.