If one must use two words to describe the current retail investors, only two words remain: anxious and restless.

Perhaps last year, I would have used the term "impetuous" to describe them, but the current situation is indeed anxious and restless.

After all, when everyone is eagerly looking forward to a bull market, yet feels as if they have returned to the familiar taste of a bear market, it is destined to be anxious and restless.

Anxious and restless, as the name implies, is a combination of anxiety and irritability.

Irritability is relatively easy to understand, as there are few opportunities in the market, making it difficult to make money, and one can easily lose money if not careful.

And anxiety is because one is always struggling between hope and despair, which is extremely painful.

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Bull and bear, bull and bear, the mentality repeatedly burns with anxiety, which is also the essential reason for being anxious and restless.

The two most commonly asked questions are:

Question one, if one is deeply trapped in a certain stock, can they still hold it, is there no hope anymore.

Since one is already deeply trapped, why not choose to lie flat.Due to concerns about continued decline, fear of financial collapse, fear of delisting, and an irreversible situation.

If one knew the fundamental situation was so bad when buying, then it would have been better not to buy at that time.

When buying, one thought they were doing short-term trading and it didn't matter, but the result was being trapped and unable to extricate oneself.

Of course, there are also some who took over the high-position white knights, and they are also deeply trapped.

Do not discuss the issue of cutting losses halfway up the mountain, but when it comes to the foot of the mountain, they want to stop the loss, which is a standard bear market mentality at the end of the bear market.

Question two, has it hit the bottom, is it considered to have hit the bottom, can it be added to the position, can it be supplemented.

Some investors actually have some money in hand, or they have reserved a part of the adjustable position.

They are eager to bottom fish, afraid of not buying at the lowest point.

Those who are eager to replenish their positions are not empty-handed, they have some stocks trapped in their hands, and they want to replenish their positions at a low position to get out of the trap.

On the one hand, whether the stocks bought are correct, on the other hand, whether it is necessary to replenish the position at the moment.There are certainly no standard answers to these questions; no one is an immortal.

However, this mindset is clearly prone to getting stuck halfway up the mountain.

In this market where bull and bear phases alternate, it is normal to fear both declines and increases, but it also indirectly reflects the inner anxiety and restlessness, and the inability to calm down.

Impatience and irritability will definitely not make money, because the way of making moves, the timing of making moves, and the actions of making moves will all be distorted.

What does it mean to calm down?

Firstly, it means knowing how to rest.

Knowing how to rest means not being blind and not always trading.

The higher the frequency of trading, the greater the error rate.

Calm down means not making unnecessary trades and knowing how to rest.We are just too eager to make money, too eager to make money every day, so we can't stand the loneliness.

When we have no chips in hand, we always feel like something is missing.

The downtrend often lasts for a long time, but there are always opportunities in the stocks during the decline, and we can't help but want to buy.

This feeling of searching in the market every day is actually very good, because dopamine is at work.

But in reality, not knowing how to rest means that some stages are destined to lose money.

Especially now, with 4000-5000 stocks falling at a time, and the market volume shrinking to more than 60 billion, taking a break is a wise move.

Secondly, understand the importance of observation.

What is observation? It is actually observing the market and the flow of funds.

Excellent trading must come from watching more and acting less.

Many retail investors are at two extremes, either paying special attention, wanting to watch the market at all times, or not paying attention at all, not looking at the stock market situation at all.Both affirmations are certainly wrong.

Understanding observation is actually a continuous process of seeking and verifying.

This process is not something that can be achieved overnight, nor is it something you can just look at when you're free and postpone when you're busy.

This process must be sustained and accumulated over time.

Some stocks are actually repeatedly manipulated by a market maker, and if you can track and observe them over the long term, you can grasp the operating rules of individual stocks, which will greatly increase the probability of making money.

Thirdly, understand the art of waiting.

Understanding the art of waiting means waiting for the right opportunity.

In the stock market, opportunities are available every day, but good opportunities are rare.

Good opportunities often appear when the market is very quiet or when there is widespread panic.

It can't be said that stock trading must be like waiting for a rabbit to hit a tree stump, but it is necessary to know how to bide your time.Translate the following passage into English: To be like a leopard, crawl on the ground and wait patiently for the prey to enter the range that can be captured.

Fast, fierce, and accurate are the basic principles of stock trading.

But this has nothing to do with short or long positions, it refers to the selection of stocks, to try to calm down and win in one move.

Hunting repeatedly many times not only has a low success rate, but also wastes physical strength.

The principal of investment is very precious, although there is also a tolerance for errors, but that is not a reason for you to make mistakes repeatedly.

If there is no good opportunity, don't rush to start, it is okay to try, but don't always try, and try to lose the principal.

Fourth, understand execution.

Understanding execution means to carry out your strategy according to the plan.

The reason why many retail investors lose money is that they do not execute trading strategies according to the plan, always acting on a whim.

When people want to buy or sell stocks, their hearts are restless.Because only trading can make money; without trading, you are just facing a bunch of numbers, which is very cold and unfeeling.

But in fact, the strategy is correct, and restlessness is wrong. Emotionalism can easily lead to the strategy not being executed according to the plan.

Within the market, you see many stocks rising and think they are good stocks, but as soon as you buy, they fall.

To execute this, you must calm down and level your mindset to do it properly.

Whenever there is a storm within your heart, mistakes are bound to happen. So do not make trades outside of your strategy within the market, just strictly enforce it.

Of course, to achieve strict enforcement, you need to go through a certain experience.

When trading, turn yourself into a cold machine without emotional color.

Fifth, understand how to adjust.

Understanding how to adjust means knowing how to adjust your mindset and your strategy.

The trading philosophy and strategy that many retail investors implement are actually incorrect.If adjustments are not made, there will never be an opportunity to make money, as mistakes will be repeated over and over again.

If you find that your trading is repeatedly unsuccessful, never get stuck in a rut, because the essence of the problem may be wrong.

Especially in the field of short-term trading, there are many strategies that are fundamentally wrong. The more you learn, the deeper you get trapped.

When making consecutive mistakes, it is necessary to pause and reflect on your trading to identify where the problem lies.

Never rush to buy the next stock to recover losses, as the more anxious you are, the more money you will lose.

Summarize and reflect on mistakes, adjust strategies, adjust mentality, and re-assess the situation before making a move.

Everyone who trades stocks wants to make money, otherwise, why bother trading? However, trading stocks requires the right methods and mentality, as well as execution.

Do not be impatient, and do not be anxious.

Imbalance in mentality cannot solve the problem of trading stocks. Only by calming down can you make money.