Hexun Investment Advisor Liu Weiqi: Retail Investors Become Experts at Stock Trading by First Understanding These Three Questions!

Retail investors who want to become experts must first understand three issues.

First, technical analysis cannot just look at surface phenomena or only focus on candlestick patterns—rising prices make you want to buy, falling prices make you anxious, and that’s not right. You need to think from a different perspective about the battle between bulls and bears, and learn to take what others abandon. Think about it: at what point are retail investors most unable to hold on and most likely to sell? That position is often where the main funds most want to acquire shares and where they can easily pick up chips.

Second, large funds have their own trading patterns. If it doesn’t fit their style, they will refuse to enter the market. But retail investors generally have no trading rules, trading randomly—buying when prices go up, panicking when prices fall, and holding stubbornly after buying if prices drop further. How can you avoid losing money this way?

Third, this market is a battlefield of human nature, a zero-sum game. When someone profits, someone else loses. When everyone’s emotions are high, stock prices naturally rise; when emotions are low, prices naturally fall. In reality, this is an emotional market. In the end, stock trading is less about technical analysis and more about the battle of human nature. Overcoming human weaknesses, controlling emotions, and avoiding random trading are the keys to truly succeeding.

(Edited by: Zhang Yan)

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