According to the analysis of relevant experts, the main reason for this situation is that a large proportion of investors themselves do not understand stock market investment, but just follow the trend blindly, which leads to the loss of most of the investors’ transactions. of. Today , the editor of Jintou Stock Network will introduce to you six common psychology that leads to stock losses.
Why do stock trades lose money?
- Fear of stop loss, fear of loss. The usual reason is that traders are afraid of failure and are afraid to accept losses. Such traders have high self-esteem.
- Close the position in advance. Once the position is closed, there is no anxiety. And the reason for the anxiety is the fear of a position reversal, and traders need quick solace.
- Excessive pursuit of the timing of warehousing. As soon as you want to enter the position, the price can be separated from the cost, and you can have a floating profit. However, if you enter the position and are temporarily covered, it will be very uncomfortable and difficult, and you want to cut it out and pursue the perfect transaction too much.
- Trade with money that you cannot afford to lose or borrowed. Treat a deal as the last straw. Traders who want to succeed or who are afraid of missing out fall into this trap, and traders who don’t follow the record and are greedy fall into this trap.
- Impulsive trading. Traders are excitable, addicted, and like to gamble. This type of trader always trades intuitively, and when there is no trading, like on weekends, they fidget, they are obsessed with trading.
- The transaction volume is incorrect. Traders dream that the trade will make money, thereby ignoring the risks and the importance of money management. Maybe the trader doesn’t want to take responsibility for the risk, or is too lazy to calculate the right volume.