Retail Investors Take Three Steps To Defeat Themselves And Become Winners.

The biggest enemy of retail investors is neither the dealer nor the institution, but himself.

There are three meanings in making a decision and then moving the party to conquer oneself: first, we must have plans before operation; two, we need to carry out the plan, and three, we should reconsider after implementation.

Plan before operation.

There are three ways to make a buying plan:

One is to have a memory.

In December 13th, I had a pen.

Two, we must do well.

Opening the registration book, the author found that Huayuan Real Estate (6.26 yuan), which was sold in October 26th, has also dropped sharply. With a better purchase point (the latest price is only 5.83 yuan), it is possible to choose positive and negative connections. However, compared with the long-distance shipping company and the Bank of communications, it is better to buy less than the latter.

In October 26th, the closing price of Huayuan Real estate was 6.34 yuan, the latest 5.83 yuan, or 8.04%.

Over the same period, the decline of long voyage oil pportation and Bank of communications was 12.40% and 12.64% respectively.

From the comparison results, buying the long voyage oil pportation and any one of the two banks of the Bank of Communications (especially the Bank of Communications) corresponds to a larger margin than Huayuan Real estate, and the best option is obviously buying the Bank of communications.

Three, we need to compare gold stocks.

If there is a better target to buy, it can be considered together, and on the basis of that, the final buying variety will be determined.

At this point, I suddenly discovered that in November 11th, I had done an operation: selling the Bank of Communications (6.15 yuan) and changing into Huaxing Chemical Industry (9.70 yuan). Although these two stocks have dropped, the difference is quite big: the latest price of the Bank of communications is 5.60 yuan, only 8.94%, and the latest price of Huaxing Chemical Industry is 7.93 yuan, down 18.25%.

If we spent only 15456 yuan a month ago to buy Hua Xing chemical industry, we could only buy 1593.4 shares. Now we need to buy the same amount of stock only 12636 yuan, which is equivalent to more than 2820 yuan of funds.

Finally, the author made an operation plan to buy 1900 shares of Huaxing Chemical Company.

We must plan not only to buy stocks, but also to sell stocks.

The method of making a sale plan is similar to the buying plan, but the price requirement is just the opposite: the buy plan is the lower the price the better, but the selling plan is the higher the price.

Planned and implemented

If there is no plan and blind operation is a big fear of stocks, then the plan is not implemented is also a big stock speculation.

Therefore, according to the plan, the author bought 1900 shares of Huaxing Chemical at the price of 7.94 yuan for the first time.

The key to strictly following the plan is to develop "four habits":

Develop the habit of low absorption and high throwing.

Many investors have made sales plans in practice, but they have not been implemented strictly. One of the reasons is greed or fear.

When the market price of the stock to be sold is not up to the planned price, it is expected to fall or rise, but once it reaches the planned price, it is afraid to buy or sell it. If it is worried that it will fall or sell before it rises, it will eventually miss the opportunity.

Therefore, the key to strictly following the plan is to overcome greed or fear, and develop the habit of low absorption and high throwing. Once you reach the predetermined price, you must not hesitate to operate according to plan.

Cultivate the habit of abandoning life.

Another reason why investors fail to carry out the operation plan is "new and old". They worry that the old stock that they are familiar with will not keep pace with the stock market. They can not catch the Bull Stock and run the index. Therefore, they frequently buy and sell relatively strange "new stocks".

The way to get out of this vicious circle is to overcome fluke psychology, cultivate the habit of abandoning life, and try to choose familiar stock as much as possible.

Develop habits that do not go to extremes.

There are always some investors who like to go to extremes in their operations -- concentrate their forces (all funds) on a stock.

Although this method of operation may achieve the purpose of maximizing profit, it may also lead to the maximization of risk.

The correct "execution plan" approach is to be operated after the price, in order for "further" operations - to fall again, and then to sell and sell the reserved space.

There are two specific methods: first, the equivalent method: first determine the number of initial pactions, then divide the operation in sequence (every quantity remains unchanged); two, the multiple number method, the number varies but the proportion is the same (two times, three times or 1/2, 1/3, etc.) increasing or decreasing in turn.

Develop the habit of keeping records.

Some investors want to "get" more, but also want to "pay" less. They are reluctant to make a record, and often lead to the failure of strict implementation of the pre established operational plan.

The most effective way to solve the problem of bad memory and not strict execution of the plan is to record diligently. It is necessary to record the contents of the plan, such as when, how much price, what kind of goods to buy and so on, and register the actual implementation.

Only by developing the habit of keeping records regularly can we ensure that we carry out the plan strictly according to the plan.

Need reflection after implementation

Even if every plan has been implemented before each operation, each plan can be executed, but it can not ensure that each plan and operation are correct, which requires a summary and reflection step after implementation.

One is to see whether the method of making plans is correct.

The key link in the formulation of the trading plan is the comparison, whether it is larger than the decline from the "high point", the decline from a certain time point or the decline from a trading day, or whether it is smaller than the increase from the "low point", the increase from a certain time point and the increase from a trading day.

Only after a two-way comparison is made is the correct plan drawn up by the correct method.

The two is to see whether the content of the plan is scientific.

On the one hand, we should be as simple as possible when compared with others, and prevent them from finding the north in the end. On the other hand, we must be comparable.

For stocks that are not comparable, even if the drop is large or the rate of increase is small, there is no point in paying attention to this.

The three is to see whether the final operation is reasonable.

After comparing the overall system and the comparability, it depends on whether the final operation has developed the "four habits" and whether there are any technical or method problems.

Some investors may think that the planned and strictly implemented operation is not necessarily the best operation. Sometimes there is no plan to "do it" or even though it has a plan but not to execute it, it is much more effective than having a plan or sticking to the plan.

At first glance, there seems to be some truth in this statement, but in fact, unplanned operation is only for a short time.

Only by planning and moving, elaborating plans in advance, and strictly implementing them in operation are the winning magic weapon in overcoming the complex and changeable stock market and becoming winners.