#Why Do Most People Lose a Lot of Money When Trading Stocks?#

This question, not unexpectedly, at least half of the people would attribute the reasons to the stock market and policies.

Indeed, a poor stock market and inadequate policies may be part of the reason.

However, in the same stock market, with the same policies, and among the same retail investors, there are some people who make money from stock trading. What is the reason for this?

Many times, external factors are unchangeable and irresistible; what can be changed is actually only yourself.

It's raining, and raindrops are falling everywhere. If you go out and get wet, you won't be angry or angry.

If it's not raining, and you go out and someone splashes you with water, you will definitely be angry, furious, and curse.

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Looking for external reasons for a matter is a bad start.

To succeed in something, external factors are uncontrollable, and only internal reasons can be grasped.So, the right path is to continuously improve one's shortcomings and enhance one's abilities.

1. Frequent trading.

It should be said that the vast majority of people who suffer losses are inseparable from frequent trading.

Just as they jump out of a stock that has been trapped, they plunge into another stock and get trapped again.

Repeatedly trapped, repeatedly cutting losses.

After cutting back and forth, only the bones are left.

2. Operating at all times.

Whether it is in the stock market or other industries, it is very difficult to succeed against the cycle.

The stock market is no exception.During my operations in 2014-2015, I doubled the value of a stock; then I switched to another one, which also doubled in value;

I switched again to another one, and it doubled again.

2*2*2 equals 8.

The principal was multiplied by 8 times.

Now when I mention this, many people don't believe it because since 2022, it has been very difficult for individual stocks to double in value.

Why is that?

Because 2014-2015 was a bull market.

Making money in a bull market cycle is the fastest.

And once you move away from the bull market cycle and enter a period of market consolidation or a bear market, it's not that there are no stocks that double in value, but both the probability and the number are significantly reduced.

In a bull market, out of 100 self-selected stocks, you could encounter 85 stocks that double in value.In a bear market, out of 100 self-selected stocks, it's already quite good if you can find 2-3 that double in value.

In a volatile market, perhaps there are about 10 that can double.

Doubling is just a standard, the same increase of 20%-30%, the difference and probability in a bull market and a bear market are the same.

It's so big that the average retail investor can't win.

So, to make money in the stock market, you should aim to profit in the bull market cycle, where the probability of making money is high.

But in a bear market or a volatile market, messing around blindly, complaining about everything, is of no use, and it's highly likely to result in losses.

III. If you don't understand, you tend to listen everywhere and like to gather in groups.

Trading is a solitary behavior, which means that when you choose to gather in groups, inquire or show off complacently, you start to fail.

Do not gather for parties, do not discuss and study, because in the trading market there will be a "collective decline in intelligence". Also, do not debate with other traders, as it only leads to internal friction and emotional instability without any other benefits.Once again, trading is about seeking truth from within, not looking for reasons from the outside.