Four Talk About Gann'S Investment Experience &Nbsp; Three Main Reasons For Stock Market Losing Money.

William Delbert Gann, known as "the master of Wall Street", is in stock and futures.

Three main reasons for stock market losing money

1, little is known about the market.

This is what Gann believes is the most important reason.

In the eyes of Gann, investment (or speculation) is a profession. Successful investors should, like all professions in other professions, lawyers, doctors and scientists, learn and pursue their pursuits and careers for many years before they start making money.

Gann finds that most people buy and sell stocks because they want the stock price to go up and profit from it, and they often buy stocks on the basis of gossip or other thoughts, and they do not have specific knowledge about the rise or fall of stocks.

As a result, they blindly enter the market and are totally ignorant of their possible mistakes and can not be corrected in time.

Finally, they sell shares because they are afraid of falling stock prices, so they often sell at the bottom area, leaving them at the wrong time.

They do not realize that manipulate stock is a job or profession and has high requirements for their professional level.

Therefore, Gann believes that if we want to make profits in stock trading, we must first acquire knowledge and start learning before losing.

2, most investors do not have a sense of stop loss.

Gann repeatedly emphasized the importance of stop loss in his works.

He warned investors that you might be wrong when a deal was made, so you want to stop the damage to protect your capital.

The so-called stop loss is in essence a correction.

For example, when you find a buying hypothesis or a basis unfounded, or discover that your original judgment is wrong, you should sell it.

The setting up of stop loss depends on the setting of your market entry conditions and how to determine the condition of your entry conditions under which conditions are not established.

Therefore, setting up specific stop loss needs to be determined by oneself, which is different from person to person.

3, excessive pactions or too frequent pactions.

If an investor trades 200 times a year, the average cost of a paction is 5/1000, and the cost of one year is 200 times of 5/1000. The result is one hundred percent, which is equivalent to the initial capital amount.

Even in a paction, it sometimes fails, but sometimes it loses.

And the more times you buy and sell, the more times you change your judgment, and the higher the probability of error.

Therefore, reducing the frequency of errors and reducing the loss is also important to improve the probability of success.

If investors are leveraged, if they fail, they will do more harm to investors' capital.