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Why the More You Trade, the More You Lose?

  • Writer: Jiani Chong
    Jiani Chong
  • Jun 17, 2024
  • 2 min read

stock trading

Why the More You Trade, the More You Lose?

  1. Impulsive Trading: Excessive buying and selling of investments can result in transaction costs that eat into returns, especially if trades are made impulsively or without a solid strategy.

  2. Timing the Market: Attempting to time the market by buying low and selling high is notoriously difficult and often leads to missed opportunities or losses. Emotional reactions to market fluctuations can prompt ill-timed trades.

  3. Chasing Returns: Investors may be tempted to constantly shift funds into assets that have recently performed well, known as "chasing returns." However, this strategy often results in buying high and selling low as markets regress to their mean.

  4. Ignoring Long-Term Goals: Constantly tinkering with investments without a clear long-term strategy can undermine the ability to achieve overarching financial objectives.

  5. Overconfidence: Investors may become overconfident in their abilities to beat the market, leading them to take on excessive risk or disregard sound investment principles.

  6. Higher Fees: Active management often comes with higher fees, which can significantly erode returns over time, particularly if the returns fail to justify the added costs.


If you fulfil any requirements below:

  • Has limited time and knowledge to research and monitor investment opportunities.

  • Feel stressed about timing the market and not too confident about your investment decision.

  • A long-term and risk-averse investor who prefers to minimize the potential for losses associated with market speculation.


Feel free to direct message me if you're interested in crafting a simple-to-follow passive investment strategy. It's completely complimentary, and you're under no obligation to proceed with my suggestions. There's no upfront commitment required, so you can decide whether you want to move forward with me at a later time.




为什么交易越多,亏损越多?

  1. 冲动交易:过度交易会导致其成本侵蚀回报,尤其如果交易是在冲动或没有稳健的策略下进行。

  2. 试图掌握市场时机:试图通过低买高卖来把握市场时机是非常困难的,我们往往会错过机会而导致亏损。过多对市场波动的情绪反应会促使不合时宜的交易。

  3. 追逐回报:投资者可能会不断将资金转移到最近表现良好的资产中,俗称为“追逐回报”。然而,因市场通常会回归其平均水平而导致高买低卖。

  4. 忽视长期目标:不断调整投资策略且没有明确的长期目标会破坏实现整体的投资回报。

  5. 过度自信:投资者可能会对自己击败市场的能力过于自信,从而忽视合理的投资原则或承担过多的风险。

  6. 更高的费用:主动管理通常伴随更高的费用,如果回报不足以抵消增加的成本,这些费用将会侵蚀投资的回报。


如果您符合以下任一条件:

  • 只有有限的时间和知识来研究和监控投资。

  • 在把握市场时机时感到压力,并且对自己的投资决策缺乏信心。

  • 是一个喜欢规避风险且长期持有的投资者,倾向于减少与市场投机相关的潜在损失。


我们的团队提供免费且无义务的财务咨询服务。如果您对制定一个易于遵循的被动投资策略感兴趣,欢迎私信我。

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