A-shares are too ruthless, more than half of the people's account assets have re

2024-05-15

On October 23rd, the market carved out a short-term bottom at 2,923 points, and since then, it has recovered the 3,000 point threshold, fluctuating above 3,000 points ever since.

Although the market trend is indeed not good, with ups and downs, after more than a month, the battle to defend the 3,000 point level has not yet been launched.

Originally, it was thought that for retail investors, the most difficult days have passed.

However, in recent days, it has been found that more than half of the retail investors around have seen their account assets reach a new low after 2,923.

That is, in the long fluctuation above 3,000 points, retail investors not only did not make money but actually lost money.

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Although the index often shows a situation of falling more and rising less.

But overall, there is still an increase.

For the East Money All A Index, the lowest point was 4,493, and it is still around 4,700 points now, roughly an increase of about 4.5%.

But under such circumstances, many retail investors have still lost money in the tossing and turning of this month.

In this regard, it is very worth reflecting on.If one must summarize, it can be encapsulated in four words: small gains, big losses.

The reason for small gains and big losses is actually quite simple: it's the practice of buying high and selling low.

The stocks purchased are those that others have already speculated on, and the positions taken are at high levels.

To delve deeper into the essence behind this, it is actually the inevitable result of a zero-sum game market.

A zero-sum game market is the market that truly kills retail investors invisibly.

From 3731 points down to 3031 points, the market fell by 700 points, a drop of less than 20%.

But over the past two years, there are numerous retail investors who have suffered losses exceeding 20%, and many have even exceeded 40% or 60%.

In a slow bear market, the losses of retail investors must be greater than those of the main capital.

Because in the process of the bear market's fluctuating downward trend, the main capital will take various measures to save itself.

And the money they can make by self-rescue in the market is actually cut from the retail investors piece by piece.This is why the rotation of funds is particularly fast, and the electric fan market trend is particularly obvious.

Because only rapid rotation can attract retail investors to follow suit and buy, and then the funds can smoothly withdraw and look for the next opportunity.

In the stock market, the higher the trading frequency of retail investors, the greater the probability of losing money, which is an inevitable result.

Because, retail investors cannot control the direction of the market and stocks, but once the direction of retail investors is detected, it will be targeted for harvesting.

Therefore, in the game of the stock market, the requirements for retail investors are particularly high, and targeted strategies are needed.

Otherwise, in the rotation, retail investors will be cut like leeks invisibly.

The index falls less, and the account loses more, which has become the final outcome.

 

What should the weak retail investors do in the stock market?

First of all, retail investors need to understand why they are the weak side and where the gap lies.In essence, a stock market with a fixed supply implies a zero-sum game. This means that when you lose money, the main players gain, and when you make money, the main players suffer losses. In reality, the main players and a small portion of retail investors earn the majority of the money from the hands of the majority of retail investors. However, this small group of retail investors typically accounts for only 10-20% of the market.

A zero-sum game is essentially a game of the minority. Whether stocks rise or fall does not depend on the actions of the main players, but rather on the behavior of the retail investors. If the majority of retail investors choose to sell, then the main players will take a large number of shares, and it is natural for the stock price to rise. Conversely, if the majority of retail investors choose to buy, the main players will sell a large number of shares, naturally suppressing the stock price. In other words, the main players watch the retail investors' market and make their moves accordingly.

This is also a key reason why retail investors are often considered contrarian indicators.Now that we understand the operating principles of the main force, retail investors can find certain ways to crack the code.

The methods mentioned here are certain, not absolute.

Firstly, try to avoid emotional stocks.

What are emotional stocks?

They are stocks that are discussed very passionately by retail investors, with high emotions, but there is no reason for speculation, and they are not leading stocks.

Some stocks suddenly have a large volume of transactions, but there is no reason to speak of, and there is not even a story.

Continuous limit-up, it is the kind of stock that is speculated by demons, and it is often a pig-killing.

They can ignite market sentiment, trigger capital to follow, but these funds actually do not have any major main force, most of them are retail investors, and then it is the time to cut the retail investors' leeks.

Secondly, look for super hot leading stocks.

The existing market can also produce big bull stocks.However, there is a prerequisite: a big bull stock must be a super leader and a super hot spot.

Even in a stock market with a fixed number of shares, there are some individual stocks with a siphon effect, which are the leading stocks.

If you don't want to be harvested in the stock market with a fixed number of shares, then don't touch some stocks that are not at the forefront of the trend, choose super big hot spots, big leaders.

In fact, you don't need to choose this kind of stock. Halfway through the hype, there will naturally be people who say it, and even everyone will know it.

The market cycle of this kind of stock will not be too short, and it will definitely give enough time and opportunities for retail investors to enter.

Thirdly, if you miss it, don't get on the train. It's better to miss than to be trapped.

In the stock market with a fixed number of shares, don't be afraid of missing.

Because there is less capital, the probability of missing is not high. Even if you miss, you can wait for the next stock.

The result of the stock market with a fixed number of shares is to cut leeks.

Therefore, in more cases, the main capital wants to trap retail investors at high positions.They go to great lengths to create charts, measure volume, and find related topics, all to attract retail investors to take over the positions.

Even if you really miss a good stock, in the market of games, don't be frustrated.

Because not getting on the bus at most is just not making money, but if you get on the wrong bus, the days of losing money will be more difficult to endure.

Fourth, in the upward trend, do the falling chase and rising kill.

In the game of stock inventory, the cleanest kill is the chase and kill.

So from the perspective of trading strategy, the method of falling chase and rising kill may be better and more effective.

But the falling chase and rising kill is not suitable for stocks in a downtrend, because the operation is more difficult, how much to fall can be chased, how much to rise should be killed.

But if it is a stock in an upward trend, the falling chase will be easier.

When the stock price rises and then falls back to the position of the trend channel, you can chase a part of it.

There are also some stocks in the box shock, the falling chase and rising kill will also be easier, not easy to step on the mine.Fifth, retreat at the sight of a sky-high volume, never linger in battle.

In a stock market with a fixed supply, an increase in volume is generally a good thing, but a sky-high volume, especially with a high turnover rate, is a definite sign to retreat.

The definition of a high turnover rate can be determined by looking at the peak turnover rate in the past.

Because in a stock market with a fixed supply, there are very few funds willing to act as the People's Liberation Army.

Once a sky-high turnover occurs, it represents that the original market makers have already completed their exit strategy in the transaction.

Subsequent funds, once trapped, are very few and far between willing to act as the People's Liberation Army.

Therefore, many stocks reach their peak at a sky-high volume, even if it's a positive line, the subsequent funds to take over are very few.

Without an increase, it is necessary to resolutely exit such stocks and never linger in battle.

Bear markets are mostly stock markets with a fixed supply, and in such markets, it is best to remain cautious.

It is better to make less money, or even no money, than to get the principal trapped all at once, which can easily lead to a precipice.The primary goal of retail investment is not to become extremely wealthy, but to outperform the index as much as possible.

When you can achieve results that are roughly equivalent to the index, you are at least qualified and stronger than about 70% of investors.

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