Why most speculators always end up failing

We know that most speculators tend to end up failing, so what makes you so successful?

Ever since I started my investment business, I've seen a lot of speculators talk about suicide or being homeless. One of the characteristics they all have in common is that they are gamblers by nature. Once they lose money, they always try to find a deal that can cover the loss.

And I knew early on that I couldn't. A career in investing requires you to work tirelessly. That's what I did, too.

Every day, I make hundreds of trades. Accumulate earnings slowly. If you look at my daily earnings statistics, you'll see that there are very few days with big gains.

Many speculators (or investors) always carry the idea that just 1 or 2 "big" trades will change their lives; Or after a series of small losses, a single critical blow can make up for the loss or even make a profit. Of course, there is a real possibility of such an idea, but the feasibility is very low. More often than not, you'll find that behind every gambling success that takes a huge risk, there are countless tragic stories.

Since Greg started his blog in 2011, he has been able to beat the S&P 500, Greg's success is grinding out as Benedict commented, he never expected to hit a home run with one hit, his success is grinding slowly.

In his recent Dragonfly trading log, Greg noted that in the past 2 years, he has made a total of 765 trades, 484 of which ended in profits, and the others have either lost money or remained flat. He always uses the entry and exit strategies very precisely, trading ** or options on both the long and short sides of the market. For him, speculation isn't a 9-to-5 job or a hobby, it's his career, he's a professional speculator.

In the investment trading industry, you have to work hard. That's what Larry Benedic told you, so would Greg Harmon, and anyone who has been successful in the business will repeat the same thing. One of the greatest speculators of all time, Bernard Baruch, whose first investment discipline was "Don't speculate unless you think it's your full-time job."

Decades later, this golden adage still holds true, and in fact, today's market has become more difficult for amateurs.

For anyone, a home run is a chance to hit randomly, but what does that mean? Can you repeat the shot a second time? Is it the third time?

Probably not. So the real question is, is it something you are willing to do and whether you can do it. Maybe the statistics will say that you are not a good fit both physically and emotionally, but no one blames you for trying.

So you just need to make sure that you are really willing to "hone in on your time" for success, because your success comes from your tireless work, and you deserve it.

Otherwise, everyone is Jack Ma and Li Ka-shing.

The market is not good, blindly follow the trend.

The speculative nature of China's capital market is not only manifested in the fact that the price-to-win ratio is generally as high as 60 times, which is surprisingly higher than that of western developed countries (generally 20%-25%); According to statistics, in 1996, the turnover rate of the ** market in New York was 52%, and that of Tokyo was 27%. London is 58% and Hong Kong is 54%. South Korea is 91 percent, Thailand is 30 percent, while China is surprisingly high, Shanghai is 591 percent, and Shenzhen is 902 percent.

The high turnover rate indicates that most of the shareholders want to profit from the changes in buying and selling, but do not want or believe that they can pay dividends, or think that dividends are not as big as profits from changes. In fact, speculation in China's capital market is rampant, and newspapers and periodicals have also exposed it, first there are "shady scenes", and then there are shady scenes in cities such as Lanzhou, all of which are exposed. China's capital market is highly speculative, which has become the consensus of most people.

The question is, why is there such a strong speculation in China's capital market, which has been established for 10 years? Some people say that there are speculators (bookmakers) who are at work. This is certainly the reason, but how can speculators (or market makers) run rampant in China's capital market for so long?

Some people also blame the speculative nature of China's capital market on the inadequacy of the legal system, laws and regulations, and supervision. All of the above arguments make sense. But I believe that the more important and deeper reason is the institutional flaw.