To Make Money In Stock Market, We Must Know How To Manage Risk.

There are many uncertainties in the stock market, even in the bull market. The motto of "the stock market is risky and the market needs to be cautious" should always be on the ears of investors. For the new investors, only by firmly establishing the awareness of risk management is it possible to persist in the "long distance running" in the market pursuit of profits.

Over the past 7 years, Shanghai Stock Index touches 4000 points again, and 2500 points on GEM. In the stock market "money making effect" attracted, no matter uncle aunt, or 90 after "small meat" have "run" into the market. Data show that in the past 5 weeks, the number of new accounts in the stock market has reached 5 million 750 thousand.

For the "A" feast since 2015, a spokesman for the securities and Futures Commission said: "the recent stock market rise is a recognition of the whole market's" bottom up "for economic growth and controllable financial risk. It is also a comprehensive reflection of comprehensive deepening reform, abundant market liquidity, downward interest rate on capital, and improvement of profitability of Listed Companies in small and medium enterprises, and has its necessity and rationality.

With the increase of residents' income, wealth will have a strong desire to preserve and increase value, and social wealth is gradually migrating to equity financial assets. At the same time, with the influx of incremental capital, the stock market activity and market growth will be promoted. Of course, in the face of the high returns of the stock market, we also need to remind new investors that our stock market is risky. We must learn risk management before investing in the stock market.

Many market participants told reporters that the new shareholders need to know that even in the bull market, the stock market also wins or loses. Every day, old stock holders hate to leave the field, and there are new investors coming in. For most of the new investors, many rules of the stock market are not fully clear. In operation, it is necessary to adapt to the rhythm of the stock market, strengthen risk management awareness, and formulate suitable investment strategies for them. This is especially important. How can the new investors in the bull market make better risk management?

First, do a good job of knowledge reserves. The stock market is a complicated systematic project. Participants need to learn knowledge about stocks systematically. This is the fundamental way for every new stock holder to take stock in the stock market. The first thing new investors enter the stock market is not to buy and sell immediately after opening an account, but to familiarise themselves with the basic rules of the game in the stock market. Investors who have just opened their accounts may wish to participate in some simulation operations. After having a certain level of investment, they can intervene in the actual operation.

Two, establish risk awareness. When new investors just enter the stock market, don't rush to buy and sell with luck. In general, when a large number of new investors enter the market, the bull market has developed for a certain time, and the stock price that started to start has often risen to a relatively high level. When new investors open their accounts blindly, they will often face certain problems. risk 。 It is critical to choose the right time to enter the market fully by combining basic judgement and technical analysis.

Three, control the warehouse. In order to enter the stock market, we must control the positions carefully. Especially under the condition of large fluctuation, the new investors can not participate in those leveraged investment tools that are relatively complicated, such as margin trading, frying stocks, capital allocation and stock speculation.

Four, learn to stop in time. some Investment The idea is that stop loss is a strategy for bear market, and bull market does not need stop loss. This is a wrong idea. In fact, the bull market also needs stop loss. When stocks show signs of peaking, or holders of non mainstream stocks and stocks that fall counter market, they need to stop losses. Especially when there are significant changes in the market environment such as fundamentals, or when investors make serious mistakes in the market, it is more necessary to have a firm determination to stop losses.

Five, reduce frequent operation. There are many new shareholders in the bull market. shares After the profit is thrown, the other stock is bought immediately, and the funds in the hands are not easy to live at all. Stock accounts are always all kinds of stocks. In this case, once the market adjustment or individual stocks fluctuate, it will face greater risks. In the bull market, choosing value stocks to be patient should be a good choice for new investors.

Six. Learn how to invest. The current market hot plate rotation rate is frequent, many plates show "one day tour" situation, the relevant stocks also show synchronization trend, the single stock may face the risk of market adjustment, it is suggested that we should choose diversification investment, and buy stocks in a number of sectors that may become hot spots in the future. It is also an effective measure to control risks and increase returns.

Seven, do not expect too much of the stock market. Those who had earlier participated in the bull market generally gained some profits, which made some new investors feel illusory and believed that it was easy to make money in the stock market. Then, we will work out a profit target that does not conform to the actual market conditions. When the market changes, they will often suffer heavy losses in order to achieve the original goal and ignore the actual situation.

Eight, distinguish true and false news. The market sector is moving, and all kinds of news can be described as "flying all over the world". New stock holders have just entered the stock market, lacking the experience and skills of long-term and stable profits. They often rely on the so-called "gossip" in the hope of making profits, and easily fall into the trap of other people's design when they do not have the ability of dialectical analysis of the news.

After 7 years, A shares returned to the 4000 point again. Along with the steadily rising stock index and increasing turnover, the enthusiasm of new investors entering the market has been greatly ignited. According to statistics, nearly 600 new stock investors have been running into the market since entering the year of the sheep.