Why individual investors fail to invest in stocks # 1. impatience

Why individual investors fail to invest in stocks # 1. impatience

Hello, I am JJISSOx, a stock chart analyst for office workers.

In this posting, I planned a posting on why ants (individuals) must fail to invest in stocks ... and why they feel they are failing.

First, I planned 6 episodes. Part 1 is for <Immediate>.

In fact, not everyone fails to invest in stocks. Some of my acquaintances know that I have a friend who is called the top 5 in Korea (Of course, I don't give any information)

These people are earning earnestly and earnestly, and even at this moment, they are making profits and stably calling assets when the stock market is bad or good.

Am I the hand of Minus?

Why would anyone make money by investing, and someone lose money and live a negative life? Here are some of the most common words from other investors or those who do not invest in stocks.

 "If I buy it, it falls, and when I sell it, it rises."
 "I got acquainted with acquaintances, but I collapsed, but life collapsed."
 "I think it's a big hit because I want to go up 20-30%, and I left it half after I thought and left it."
 "If you stock, you lose your mind."
 "I tried to get out of the water by lowering the level, but I got up and screwed up."
 "I thought I would apply for the jackpot in the news, so I just went in ...

Do you have any empathy? In fact, I am an individual investor. And it's an ant .. However, there are some areas where low level or mind control is not good. I think everyone will feel this.

These days, I've been meeting fund managers and hearing a lot of stories about the work I'm doing in the company. After meeting 10 to 20 times, I feel somewhat like the way they invest.

I would like to compare the method with the stock investment method commonly used by individual investors.

Individual investors who want to increase the amount of money

To explain it a bit, it is easy to think of a fund that a bank entrusts to an expert. And compare it to how I put it in stock.

We open a fund account at the bank, and pay a certain amount of money, such as $100,000 or $200,000 on a set date each month. Then, the bank is structured so that experts can make investments under the name of the relevant fund and settle the profits after one year.

The strategy and tactics in it will be covered in the next posting, and you will feel the impression by looking at the form of investment.

We start rolling 1.2 million won in one shot with $100,000 each month in the fund, which is $1,200,000 won a year. From the moment you sneak, the individual investor has crossed a river that will never succeed.

From the situation where we don't know how the market situation will change, how the economy will change, how the industry will change, and the issue, we have a fight that cannot be beaten in stocks, starting from a situation where we don't know all of my investments in one shot. Will be.

That's what I started when I started investing in stocks. Even if you eat only 3% a day, it's 80% profit per month on the 20th.

Have you ever thought of this? 'I fell 1% yesterday ... if I climb 4% today' ...

But imagine that this is cumulative to -10%. The investment is all-in, so there is no money to put in, and we stand at the crossroads of choice, but we cannot easily decide. And every day you spend all your time in the urgency and impatience of looking at the trading window and hoping for recovery.

Dear Individual Investors, You will never be able to select a stock that rises 3% per day without analysis of the stock you choose. Absolutely.

Let's put it in better than Apple-related notes. This situation will be repeated many times.

Funds are characterized by dividing one year into specific sectors of selected countries based on economic conditions and industrial trends. Screening is second, let me give you one example.

Let's say we bought $100,000 items of NASDAQ every month. It's a stock market like shit, and the stock price index has just collapsed.

If we had bought one year, we would have been able to make a 5% save even in this worst market.

A game that starts from the moment you buy

There is another thing we are overlooking. It is also a factor that impedes impatience. Buying and selling our stock is not just trading at that price.

Equity investments are taxed anyway. It's called the securities trading tax. And there is a fee. We bought an $3,000 investment, but the moment we buy it, we see a 1% loss.

Just because $3,000 is maintained, it doesn't mean you will like it. It should be at least $3,030 (1% profit), so there is no loss even if you sell.

If the 1% share price has fallen, it's like we're already losing 2%.

As you can see above, when I sold Aprogen KIC(Korea stock) that I sold in the past, I incurred a transaction cost of 12,664 won. If I sold it at the same stock price, I would have lost as much as the transaction cost

We are a structured game that starts with a little loss from the moment we buy. That's why I sell so much that I lost too much, and I ate a fairy, so if I sell and repeat it many times, I can see that at some point my principal won't blow up so much.

Because all of this costs money to escape because of the cost of trading, we have to sell at about 11% in order to make a full profit and eat it.

Strategic / tactical investment methods increase individual investor losses

I told you that you are studying, studying and making a conditional search formula with a goal of 10% per month.

When an item I discover is stopped, a regular individual investor often buys the item right there.

If you recommend it to a low-ranking person or acquaintance, you often buy it that day. And they ask me every day. Why is this ... (So I don't recommend it well.)

Equity investment is strictly a stock market, and there is a mechanism of the market. You have to understand this, study a little, and be an investment. However, without considering any of these things, you can invest and be impatient and impatient .. Check the stock price every day. -_-;

When I reach the target level, I have to sell it off boldly, and personally set the unbearable loss rate, and also have to boldly shake it off. In addition, it is necessary to decide whether to hold a little more or to chase through the analysis of the events.

Individual investors are only forced to increase losses because most of the market or acquaintances buy at the time of the story (at the peak of the stock price).

In addition to that, I mentioned it above, but it wasn't a story to be sloppy, but I dreamed of a jackpot because I was sloppy.

I've sold out the items that have been sorted out and boldly erased the items of interest, and I don't even look back. Even after looking at only one month, I don't know how the market situation changed when I discovered it.

In summary, the reason for making impatience (Immediate) can be seen as the three reasons explained above.

The fundamental reason for impatience
① Bread, ② Transaction cost, ③ No strategy / tactical

To put it a bit easier, it means that you start losing stock from the moment you start stocking, but you don't prepare properly.

So, what should an individual investor (individual investor) do from now on? Before starting stocks, it is necessary to make systematic investments with strategies / strategies prepared through thorough preparation.

Let's study together for a successful investment ~ So, let's finish the section # 1. Impatience of individual investors failing to invest in stocks, and come back to the second episode <Trend>. ^^ (by JJISSOx)