To be frank, in my opinion, most people do not have the capability to consistently profit from the stock market. In most cases, friends who have been trading stocks for several years still operate with the same tactics of buying high and selling low. There are also some friends who join the stock market without even understanding what stock trading is, ending up with financial losses and a hasty exit.

These stock investors share a common trait: they enter the stock market with a strong purpose, boldly waving the flag of "I want to make a lot of money" and rushing into the market. After a few rounds of buying high and selling low, they lose their principal, and then use the phrase "the stock market should pay tuition fees, so that experience can be bought" to comfort themselves. If you really ask them what they have learned from this, they might not be able to answer.

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Today, this article is dedicated to novice stock investors who are interested in stock trading but do not know where to start, and is only intended as a reference for suggestions.

Preparation work can be roughly divided into three aspects:

Psychological preparation

This is the most important element of preparation. You have seen the phrase "The stock market has risks, and entering the market requires caution" many times, but most stock investors still enter the market with fantasies and high expectations for the stock market. Many people think, if it goes up, I'll sell, and making a little profit is a little profit. However, those who are lucky enough to make money as soon as they enter the market often forget the risks of the stock market. In fact, there are not so many lucky things.

In the context of our country's stock market environment, most small retail investors follow the trend, buying high and selling low, because you do not have the large capital to manipulate the stock price, and the information you can hear online or from others is basically not true. So if you really have the idea of getting rich overnight, it is better to advise you to end it early.

For those stock investors who really want to fight in the stock market, they should always remember the "high return, high risk" characteristics of the stock market, and not be arrogant in victory or discouraged in defeat. In the stock market, it is nothing more than rising and falling. Do not be too obsessed with the current gains and losses, and do not make a hasty decision when trapped, to avoid making the wrong decision.

Enhance risk awareness, calmly, objectively, and rationally study the market, always remember what you are doing and why you are doing it. Keep a clear mind to truly prevent risks and avoid unnecessary losses.Capital Preparation

This is a necessity, but the source of this part of the funds also needs to be considered.

Firstly, the source of funds must be idle money, which means that money that is urgently needed at home or has other important uses should not be invested in the stock market. Not only is the risk too great, but it will also directly affect your entire operation process, and the psychological pressure is too great;

Secondly, for the amount of funds entering the market, although there are no rigid regulations, it is best not to be too small. The minimum unit of buying stocks is 100 shares per hand, and according to the current market price, buying one hand at least requires four or five hundred yuan. Moreover, if the amount of each transaction is too small, the proportion of transaction costs in the transaction amount will be relatively high, and the unit transaction cost will increase, which is not cost-effective;

Thirdly, depositing a certain amount of funds into the market is conducive to reasonable control of positions. The psychological impact of half-position operation and full-position operation on stock investors is very different, and retaining a part of the funds is also beneficial for investors to reduce costs when they are stuck.

Knowledge Preparation

In such a virtual market as the stock market, everything depends on numbers. Therefore, learning to look at the big picture, understanding the meaning of each professional term, what is A-share, B-share, H-share, N-share? What is the turnover rate? How does the trading volume affect the activity? And so on, these knowledge reserves must be prepared in advance.

Learning

First, understand the basic knowledge of trading. This is the basic skill of stock market operation and is also the knowledge that beginners must master when entering the market, which can solve the problem of how investors can buy and sell stocks conveniently and freely. However, due to the continuous improvement of the market and the emergence of new trading rules, investors' knowledge of trading rules also needs to be continuously updated;Second, browse information. This can involve reading forums, posts, or following public accounts, financial news, and browsing related information to expand your knowledge base. If you have more time, you can choose to read some famous books and methodological works, which also helps to form your own "investment view."

Third, be well-prepared in other aspects of the stock market. Generally speaking, this includes macroeconomics, fundamentals, technical analysis, laws and regulations, and involves knowledge in financial accounting, securities investment, industry knowledge, economic law, and many other areas, which can be relatively complex. However, investors must learn to analyze the trend of stocks from the perspective of fundamentals and technicals, evaluate the investment value of stocks by analyzing the basic elements that determine the investment value and price of stocks, and judge the future price trend of stocks by analyzing the volume and price trend of stocks, so as to make correct investment operations.

After all these preparations, don't rush to buy. There are too many stock trading software on the market now, and they are becoming more and more user-friendly. Almost every household has a simulated account, so before officially buying, you can try to practice with a simulated account, which can also test your operational level. After operating for a period of time, you can officially open an account.

After formally entering the market, it involves a series of specific operations such as selecting stocks, buying positions, controlling positions, and timing sales. What needs to be emphasized later is recording, that is, keeping a record of every transaction and every time the market fluctuates greatly. The more detailed the record of your investment trajectory, the more it can help you reflect and summarize experience.

1. First understand the basic knowledge of the stock market

Before investing in the stock market, it is very necessary to understand the stock market and its basic principles. You can learn the relevant knowledge by consulting professionals, reading books, or websites.

Understand the classification of stocks, trading hours, the mechanism of profit and loss, the basic principles of stock price changes, and other basic principles. In addition, you also need to master some technical analysis, fundamental analysis, and other methods.

2. Determine your own investment goals and risk preferences

Before entering the market, it is very important to determine your investment goals. Are you just making money in the short term or planning to hold for a long time? How conservative or adventurous do you want to be? Determining these goals and risk preferences can help you develop a more effective investment plan and minimize financial losses.

3. Allocate the investment portfolio in proportionOne way to mitigate risk is through diversification of investments. In other words, you should not put all your eggs in one basket. You need to create a portfolio that includes multiple stock companies to ensure that the risk of your entire portfolio collapsing due to the failure of a single stock is minimized.

4. Study Stock Trading Strategies

A successful investor needs to learn and form their own stock trading strategies. There are many trading strategies available in the stock market, such as value investing, growth investing, and technical analysis. Before you choose and use a strategy, you need to familiarize yourself with how it works and verify its accuracy and applicability.

5. Choose a Reliable Securities Company

Whenever you participate in any stock market investment, you need to conduct comprehensive due diligence on the chosen securities company. This includes the costs of buying and selling stocks, other related fees (such as account management fees, bank transfer fees, etc.), and you also need to pay attention to the reputation and competitive advantages of the securities company.

In summary, stock market investment is a challenging activity that requires continuous learning and practice. If you plan to make long-term investments in the stock market, you need to spend more time delving into investment strategies and market dynamics, and continuously enhance your knowledge and skill level.

Must Know

1. You must buy stocks that you have observed, tracked, and studied over a long period. Moreover, these stocks must be from companies or industries that are very promising, have excellent performance, and will continue to grow.

2. You must constantly cultivate and improve your patience, as patience can largely determine your success or failure in the stock market. Buy when it is undervalued and cheap, then patiently wait for it to grow continuously, and when it rises to a high point, sell without hesitation.

3. You must invest with idle money, at least money that you do not need to use for three years. You must never invest with borrowed money, nor can you use leverage. I have seen many people who have lost everything due to the use of leverage. As long as you invest with idle money, you will not be afraid of sharp fluctuations in stock prices, and you can hold your stocks with peace of mind.4. Never expect to get rich quickly. There has never been a precedent for quick wealth in the stock market. Warren Buffett is the world's most formidable investment master, and most of his wealth was acquired after the age of fifty. Please keep in mind that only by becoming rich slowly can you truly become rich.

3 Pieces of Advice:

1. Recognize yourself and understand your maximum risk tolerance, which is the basic premise for participating in market games.

Many people may not even be clear about what type of person they are. Do they want to be more conservative or aggressive? Do they want to focus on short-term or medium to long-term investments? What is their maximum risk tolerance? For example, if you invest 1 million yuan and it doesn't matter if you lose it all, then you can choose a relatively aggressive strategy to seize the market, or even engage in futures trading. If you invest 1 million yuan and can't stand losing 100,000 yuan, then your best financial choice is to invest in fixed-income financial products. Don't rashly choose stock market-related products, as the fluctuations there can easily cause you to lose 10 percentage points. If your tolerance exceeds 10 percentage points, or you can even bear a loss of about 50 percentage points, then at this time, you can choose index funds or thematic funds according to your personality, or directly purchase stocks from different industries. We suggest that general investors must participate in the market with money they can afford to lose, holding a medium to long-term investment philosophy, so as not to be overly anxious and seize market opportunities.

2. Learn to arm yourself, improve yourself through learning, and pay less market tuition fees.

Many market novices like to listen to news and gossip, which often backfires. The best way is to improve yourself first. Learning is a must. Read more books, listen to some courses, and then continuously summarize based on practical experience. This is a good way to arm yourself. Of course, choose how much time to spend on arming yourself according to your own situation, but at least you should have a clear understanding of the market rules. When you have time, read books and listen to courses, especially relatively systematic books and courses, which are very good ways to improve your thinking. In this regard, our public account "Bull College" learning platform will be a great help for many novices to improve.

3. Learn to entrust your investments to professionals.

When you have a basic understanding of the market and have improved some skills, if you are determined to grow continuously in the capital market, you can choose to play by yourself and eventually become a professional investor. However, if this is just an investment, then you should understand that expertise is key, and professional matters should be entrusted to professionals. At this time, you need to learn to choose funds, choose to entrust them to people who can help you manage, and choose what kind of person to help you manage. In fact, it is whether this person's philosophy, logic, thinking, personality, and character meet your values. If they do, you can entrust them and become a long-term investor, which is feasible. Choosing people is an art, but you need to be clear that the past does not represent the future. When you choose, you should think more about the future, think about this person's ability to grasp the future, and combine your basic market understanding and judgment of people's abilities to finally make a suitable choice for yourself. In any case, remember to entrust your investments to professionals with money you can afford to lose, and good luck may come naturally.

5 Reminders:

First: Do not borrow money to trade stocks. The money for trading stocks should be idle money that you don't need for the next five years.Second: Do not easily listen to the stock recommendations from "teachers". If they were that capable, they wouldn't need to come out as "teachers".

Third: Do not easily buy ST stocks unless you have keen market insight and rich financial experience, otherwise you may lose so much that you start to doubt life.

Fourth: Generally, do not buy new stocks. Wait for two years of operation, check the financial data, and examine the company's profitability before making a move.

Fifth: Do not chase rises and cut losses. You might be right once or twice, but the chances of losing are very high.

The stock market is like a martial world, always full of drama and legend, but also full of dangers. In Jin Yong's novels, the top martial artists in the world all hope to live a peaceful pastoral life, while those who seek quick success and instant benefit will eventually go astray and end up in a tragic situation. This reminds us to cherish and be cautious as we go.

Remember, do not take out all your assets, as long as the green mountains are there, there is no need to worry about the lack of firewood.