The so-called bull market can actually be understood as: a continuous one-sided market!
But why do many people still lose money in such a market? I roughly divide them into several types:
Missed type: This type of retail investors actually do not believe that there will be a bull market at all, or think that there will not be a bull market for the time being. Because they do not believe, they will not implement the entry strategy, or they will exit the market because of fear after entering the market
Sell-out type: The common point of this type of retail investors is that they are very afraid of profit taking, or they are afraid of being deceived by the market! Every time I think about the pattern, the floating profit I have obtained turns into floating loss. From then on, I swear that I will get out as long as I make a profit, and I don’t pay much attention to the reversal signal of the overall market. I will only make a stop-profit order, not a pattern order, so even if it happens again, I will still fail.
Watching the show: The common point of this type of retail investors is that they think it will fall if it falls, and it will continue to rise if it rises. They never dare to buy at the bottom, and they will never escape the top. In essence, they lack the ability to interpret the market.
Stubborn type: The common point of this type of retail investors is that they are used to looking at the current market with their past experience. When the market hits the bottom, they will tell themselves, look at how the bull market went after the correction before, it is unlikely to go straight now, or after reaching the top, they will tell themselves, look at where it rose before, it may rise now, all transactions are based on personal previous experience and feelings, it is difficult to look at the market carefully or listen to others' suggestions, and they are like looking for a sword in a boat!
Gambler type: The common point of this type of retail investors is that they frequently trade, make orders continuously, and pursue the pleasure and excitement of gambling. If they don’t make an order for one day, they will feel uncomfortable all over. If they don’t make an order for three days, they will die. It is normal to make orders against the trend. In their world, there is an expectation: if this order loses, it’s okay, you can make it back by placing an order. If you lose money on an order, you can make it back by placing an order. However, he doesn’t know that he is trapped in a dead cycle of losses.
And those who can really enjoy the dividends of the entire bull market are often "fence-sitters". When trading, they will not rely too much on their own feelings and luck. They will calmly analyze the direction, fundamentals, and logic of the market; find the intentions of the main force and follow the trend; always trade the main rising wave, stop loss and reflect in time if they are wrong, and expand profits if they are right. The winning rate does not need to be too high, but the profit and loss ratio is amazing. If you make three orders and make two wrong, you can get back the investment with one order. Believe in the market
Always right!