Most people, in fact, do not truly understand investment, so it's quite natural for them to lose money in stock trading.

Up until now, the investment philosophy of most investors is still influenced by many self-media, without recognizing the reality.

Perhaps speaking out about many things might offend many people, but the words that need to be said must still be spoken.

The wrong investment concept is the main reason for losing money.

Whether it is short-term speculation that can make money, or long-term value investment that can make money, for retail investors, it is actually a completely false proposition.

Many "lies" have been deceiving ignorant retail investors in this way.

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Let's talk about short-term speculation first.

Retail investors can make money through short-term speculation, with skills in hitting the board and the ability to learn battle tactics.

These things, it can't be said that they are completely useless.

But most people who learn them are useless, and will lose even more.To put it bluntly, 90% of the stocks that short-term speculative capital plays with ultimately pass the buck to retail investors.

The T+1 trading system inherently puts retail investors at a disadvantage when it comes to ultra-short-term trading.

That is, the main force can sell all the chips in their hands to retail investors at specific times, and ensure that retail investors cannot sell on the same day.

In this situation, the weakness of retail investors being half a beat slow is fully exposed.

From this perspective, it is almost impossible for retail investors to defeat the main force in short-term speculation.

In this strategy, there will be a defect, called trading delay, which is a day late.

The main capital with the initiative can hardly guarantee the return rate, so the delayed retail investors will naturally be more prone to losses.

Retail investors who make money in short-term speculation often have several characteristics.

One is that the reaction speed is very fast, and they dare to enter the game quickly. Another point is to take the good and stop, not greedy, and not easy to be trapped.

In addition, ordinary retail investors speculate, which is no different from directly taking the plate, and it is almost impossible to succeed.Let's talk about long-term investment.

In this market, there is a pitfall, which is that you have already jumped in but are completely unaware.

That is the so-called value investing.

If short-term fallacies can be quickly refuted,

then long-term fallacies are the ones that truly regret for a long time.

Never be brainwashed by value investing; that is the real big lie.

Firstly, different economic cycles determine different future growth.

Many people will start investing from a few low points and use the annualized return rate of a few high points as the benchmark for value investing.

It can only be said that it is a big mistake.

For example, some people will say that the long-term fixed investment return of the Shanghai and Shenzhen 300 is 8-10%, and even higher.The actual situation is that the stocks of the CSI 300, in the past 20 years, have been in a dividend period.

Nowadays, it is no longer the dividend period of the past, and the performance growth rate of the listed companies corresponding to the CSI 300 has significantly declined.

That is to say, the value investment of the past is now completely outdated in the current era.

Previously, GDP growth could still reach 8%+, but now, every effort must be made to maintain a 5%+ growth rate.

Under such circumstances, a valuation of 10 times was considered low, but now it may be 8 times, 6 times, or even lower to be considered low.

Listed companies also have a life cycle.

Take Alibaba, which is well known to everyone, it has started to decline in the past two years and is no longer as strong as before.

Every enterprise has a golden peak period, and this period is the easiest to deceive retail investors to take over the position.

In 2021, those who believed in the story of big white horses almost all failed.

What's more worrying is that the performance of many so-called big white horses has started to change, and the situation is very bad.The approach of using past experiences to judge and predict the future has significant issues.

Value investing itself carries considerable risks, primarily due to the unpredictability of value.

If value investing were truly that easy, everyone could simply hold onto blue-chip stocks and wait patiently without doing anything else.

It is precisely because the cycle of verifying value is too long that many people find themselves deeply entangled when they finally realize the problem.

Compared to the quick falsification of short-term investments, the erroneous concept of long-term investing is where the greater risk lies. It is a type of investment approach that is difficult to react to in the short term and is easily influenced by long-term brainwashing.

Retail investors who want to make money must always remember one thing: look at the results.

The stocks that can make you money are the good stocks, and the trades that can make you money are the good trades.

All other investment philosophies, methods, and models.

If they ultimately lead to losses, they are all worthless and have no value at all.Some say that buying Moutai is a value investment, but this statement is not even half right; at most, it touches on just the tip of the iceberg.

Purchasing Moutai at 200 yuan is called a value investment, while buying it at 2000 yuan is called being trapped by value.

The key issue is that a stock price of 200 yuan is cheap, has the potential to rise, and has a huge room for growth.

A stock price of 2000 yuan is very expensive, and after buying, there is a high probability of being trapped, and it is unclear when the trap will be released.

Do not think too complicatedly about stocks.

In fact, stock trading itself is a pure transaction, and the way to make money is to buy low and sell high.

Talking about stock trading without referring to buying low and selling high is nonsense.

Value investment also talks about buying low and selling high, buying when the valuation is low and selling when the valuation is high.

Short-term speculation also talks about buying low and selling high, but it is just buying when the popularity is high and selling when the popularity is low.

The secret to stock market investment is actually the same, and the key point is to judge the high and low.Here is the translation of the provided text into English:

There are several phenomena that can serve as key references.

1. When stock prices are low, they are often neglected, and by the time everyone knows about them, the stock prices have often soared to the sky.

2. When performance is poor, it is often overlooked, but when performance is good, there are often many people willing to take over the positions.

3. Even value investing pays attention to the trend. Without a strong wind blowing, value investing can also be a mess.

4. Long-term investment itself is the result of a series of short-term games, and it is essential to go from disagreement to consensus.

5. Trading volume directly determines the direction of stock prices. Without the support of capital, even the best stocks cannot go far.

6. The trend of the vast majority of stocks must conform to the overall market environment, and good opportunities appear in a bull market.

Investing is not that difficult, but it requires strong learning ability and a good mindset to maintain patience.

The market always fluctuates, and many times, good prices and good investment opportunities are waiting to be found.

Even if you are a short-term speculator, you should understand that haste makes waste. Be clear before you take action.Translate the following passage into English:

The last and very important point.

Never listen to public opinions, because there is no method that can help everyone make money in the capital market.

Most public opinions are contrary to the actual trend.

There will never be a method of making money that everyone knows, otherwise, the world would be in chaos.

The truth of the investment market is also only in the hands of a small number of people.