1.Listen to the grapevine

Because the cognition of the novice is still in the formation, experience is not as deep as other investors, so often listen to the "more capable and experienced, and good words" investors, then will form a situation: every time to invest in a company, will especially go to the Internet to search for "professional" recommendations, or discuss with relatives around。

Moreover, when a novice investor discovers the stock, the psychology has actually made a good decision, and simply by eye margin, by looking for articles or other people's opinions, in fact, just to prove that he is right.。Novices often don't know what kind of company it is, or even the profit model, business model, organizational structure all don't know.。Besides, the grapevine is one-to-ten, ten-to-one.。

In the stock market, there is a role called "predators," they specialize in doing trading, profit is to "put the news," they will buy a large number of stocks before the rally, and then slowly release the "news" that it will rise, the news will ferment in the market, other people heard that it will rise, they have to buy, the stock really rose, in the process of the stock continued to rise, the predators will start。

2.Think investing in stocks will be in debt

In fact, some new investors will experience a struggle before entering the stock market: think that the stock loss will be lost to debt, and even fear that will be lost to the debt collection, and eventually lead to the destruction of the family.。It actually comes from stereotypes.。

However, it's actually very rare for stocks to lose money to debt, unless your principal is not your original money。

A.Invest with your own money

Suppose you invest your $100 in company A, and a month later the company goes bankrupt, the assets are wiped out, the stock price falls from $100 to zero, and no one wants to buy its stock, then ask the investor: how much money have you lost？

It's up to $100, and it's your own $100, so it doesn't create debt。

B.Invest with other people's money

Suppose you invest $100 in company A, but 90 of it is borrowed from the bank and the remaining $10 is your own money, and the company goes bankrupt and the stock price falls from $100 to 0.。

Similarly, you lose $100, but the scary thing is that 90 of that is not yours but the bank's, which means that the bank will ask for your 90 whether the company goes up or down.。This is a $100 loss, of which $90 is your own, but $10 is the bank's, so the debt is $10。

3.Blind / Feel Invest

The most common case of "blind investing" is "investing by feeling," where everyone buys a stock in the hope that the stock will go up, so ask yourself 2 questions: why do you think the stock will go up?？Why is it up XX%?？If you can't answer the second question, it's okay, but if you can't answer the first question, then you probably don't know the company's business and profitability model, and you're really investing by feeling it.。

In the stock market, someone buys a stock, it means that someone sells a stock at the same time, these two people hold the idea is usually opposite, but the purpose is to make money, then you buy when you have to think about why the other side sold?？The buyer and seller who is right and who is wrong？There's actually no absolute answer to this, but in short, newcomers to investing have to find a reason for themselves to invest, or they'll be reduced to blind investing.。

4.Excessive diversification

"Don't put your eggs in the same basket," says diversification。Diversification is a good thing; it reduces investment risk so that a single event does not cause overall investment performance to decline.。

However, while diversification reduces risk, it also reduces return on investment, and the purpose of investing in stocks is to outperform the returns of the broader market, such as the S & P500, DJ30, NASDAQ, which is a large market.。

Suppose you invest in 100 companies, each of which accounts for only 1% of the overall portfolio, then even if one of them doubles, it only accounts for about 1-2% of the overall, in terms of performance, this growth is minimal, such performance is actually very close to the large market, that's really not as good as investing in the large market.。

Overall, however, diversification is important, but excessive diversification does not make sense。Novice investors in the principal hours, you can invest in 1-3 companies even if good, but even if you have enough money, up to 10-15 companies is enough, after all, investing in too many stocks may not have time to take care of。

5.Think the more you trade, the more you earn.

Another common mistake new to investing is to think that you can earn 1% on one trade, but can you earn 10% on ten trades?？At this time, it is thought that the more you trade, the more you earn, the more you will form "over-trading."。

And newcomers to investing have the wrong habit of keeping an eye on the market.。Know that today's stock ups and downs will not change because you are staring at the market.。Keeping an eye on the market won't make the stock go up, and likewise, the stock won't go down because you're not staring at it.。

And keeping an eye on the plate can affect your emotions, which can affect your behavior if you don't control them well.。And the more trades you make, the more times you are eyeing the market, and the more likely you are to be affected by emotions.。In addition, an increase in the number of transactions also means that more spreads have to be paid, which is actually an invisible loss.。

6.I think the investment strategy is complete.

Every investor has an investment strategy in mind, but incomplete is different from person to person, and even do not know whether they are looking at the "strategy" or "target," many novice investors think that "buy low and sell high" is a strategy, but it should actually be classified as a target, to achieve this goal is called a strategy.。

There are many strategies to achieve this goal, some people only invest in blue chips, some people will analyze financial reports, some people will customize some indicators, there are many kinds of strategies, but novices often haven't figured out their own strategy, they will make the above mistakes。

7.The strategy is right but the cognition is wrong.

As long as you can understand and use this to invest, you've basically crossed the threshold for a new investor.。

In fact, the "set stop loss price" is not correct, depending on what kind of investment strategy you use to look at this matter.。

"Short-term strategy"

Assuming that the novice is a short-term trade, the way he looks at it is the short-term trend, if the buyer's strength is greater than the seller's, then the stock will rise; if the buyer's strength is less than the seller's, then the stock will fall。And many stocks will have a support price.。

For example, an Iphone asking for $1,000, if the Iphone falls below $700, people will be crazy to buy, then the Iphone will not fall below $700, the $700 is the Iphone's support price, but assuming that the Iphone continues to fall and no one wants to buy, it means that "the buyer's strength is not big," that is to say, the upward trend is not big, the opportunity to make money is not big, then。

"Long-term strategy"

Suppose the novice is a long-term strategy, suppose you buy a house for $1 million and the next door neighbor sells the house for $700,000, can you still sell the house for $1 million?？As long as the buyer can compare the price will be sure to buy a house with a neighbor, if you are in urgent need of money, then you can only use 700,000 to sell, that is, to accept the loss of 300,000.。But if you didn't need the money, would you sell your house for $700,000?？Not normally, even if you want to buy your neighbor's house or not, because it's the same asset you bought for a lower price。

8.With a small and broad mentality

"Lose 1 yuan, earn 2 yuan" is called "Martingale strategy": 10 yuan into the market, 9 yuan stop loss, 12 yuan stop profit, that is, the most thanks to 1 yuan, up to 2 yuan。

Assuming that the probability of profit and loss is 50%, then every time you trade, there will be 0..A profit of $5, but what to do if the probability of loss is greater than 50%, the experts will then ask everyone to increase the investment, so that you will earn back the lost money when you make money。To put it bluntly, this is actually the gambler mentality。

Moreover, the stock price is likely to break through the stop-loss point, even if the investor set the stop-loss point is 9 dollars, in fact, the loss is not necessarily only 1 dollar, it is likely to exceed 1 dollar, which is very common in the stock market opening, the stock market opening if rushed to 8 dollars, that is to say, hit the stop-loss point, then it will automatically sell, theoretically the system to help you sell at 9 dollars, but。

If the investor is not willing to sell at $8 and wants to wait until $9 to sell, it's not really impossible, but if the situation is worse and the stock continues to fall below $8 and doesn't come back, it doesn't mean that the loss is not just $2.。

9.Unwilling to face losses

Many novice investors will often make the mistake of "unwilling to accept losses," they will set a "stop loss price" in their hearts, if the stock price really fell to the stop loss price to sell, but often counterproductive, the stock price really fell to the stop loss price but unwilling to sell, want to wait for it to stabilize a little and then sell, so have been waiting for a long time, is likely to be trapped。

The above-mentioned "unwillingness to accept losses" situation is a classic psychological state of novice investors, often need to accumulate more investment experience, it is possible to more firmly fulfill the stop-loss commitment.。

10.Wait until you have money to start investing.

Think investment needs a lot of money

In fact, investment does not require too much money, there is a stereotype of the novice that once put into the stock market, easily tens of thousands of dollars, once you make money you can buy a car, once you lose money you can lose a car, but buy a stock price is usually only tens of hundreds of dollars。

In addition, some brokerage platforms are also open to fractional stock trading, investors can decide for themselves how much money to invest, the investment performance of this stock will still follow the proportion of Apple's share price rise and fall to allocate, performance like others。

I think high investment pays off.

Novice investors will have this idea, can not be said to be wrong, because if you look at the amount of figures alone, a high principal can create a higher return (but at the same time the amount of loss is also high)。

But even if the principal is small, it is possible to create high returns by starting investing early, and Buffett became a stock market legend by relying on compound interest。As long as investors have time, they can rely on time compounding to keep their money growing steadily.。

11.Fear of stock market crash and ruin

As long as you stay in the stock market long enough, you will certainly have experienced the stock market crash, the occurrence of the stock market crash often makes investors desperate, but at the same time there are investors will take on the low point of the stock market, waiting for the rebound after the end of the stock market crash to make them a big profit。

In terms of the performance of the 21st Century S & P 500 (S & P 500), U.S. stocks have experienced three major declines during these 20-plus years: the subprime mortgage crisis in 2008, the neo-crown epidemic in 2019 and inflation in 2022, which caused the S & P 500 to fall by at least 20%, but the stock market has rebounded after the disaster, even breaking new highs each time, and for now, the index is even standing at a new all-time。

For most investors, the emergence of the stock market crash can be described as a disaster, but for long-term investors, the emergence of the stock market crash can be described as a time to pick up the bargain, because in the case of all the stock market crash, blue chips are not immune, but many blue chips will recover quickly after the crash, is the first option for many long-term investors.。

So when the stock market crash occurs, the novice investor should not be overly flustered, but should take advantage of the emptiness, usually should keep a little more money, often in order to create higher returns than other investors who left the market because of the stock market crash。