Why is it said that institutional investors or speculative funds generally lose less money when trading stocks compared to individual investors?
It's because they buy stocks at different prices.
To ensure that the price at which you buy stocks is always at a reasonable level.
For example, this stock is currently priced at 100 yuan per share, and an institution has bought 100 shares.
So the price he bought it at was 100 yuan per share.
But if this stock crashes and drops to 10 yuan per share...
That would mean a typical retail investor would lose 90 yuan per share.
However, institutional investors have a different stock trading logic.
Since the price has fallen to 10 yuan per share, they continue to buy, purchasing another 100 shares.
Based on this calculation, their share price is 55 yuan per share.
The loss was kept to 45 yuan per share.
If this stock rises again and reaches a price of 100 yuan per share...
That institution can earn 45 yuan per share.
For the average stock investor, even if they resist the urge to sell, they will only break even once the stock price rises back to 100 yuan per share.
Moreover, many investors panicked and sold their shares at a loss when they saw the price plummet to 10 yuan per share.
There will be no further increases in holdings.
More importantly, many stock investors, especially novice investors, simply don't understand the concept of adding to their positions.
The answer is simple: go all in with all your money!
I'll be grateful if I make money!
If you can't make money, cut your losses and run!
Market makers, institutional investors, and even speculative funds all exploit this psychological weakness of retail investors to continuously fleece them.
Unless a real stock market crash occurs, institutions, including a few speculative funds, will remain calm and collected.
Chen Tai was the one who got harvested.
Having served as the chairman of an investment company for so many years, Chen Tai naturally knew that he couldn't go all in at once!
But he has no choice now!
He was so anxious he was practically red-eyed!
He needs to make enough money in the stock market before he can continue to make money!
But if you want to make a fortune instantly in the stock market!
On the one hand, you need opportunities, such as a bull market; on the other hand, you need sufficient funds!
Chen Tai has already prepared both of these conditions!
Everything is up to fate!
Chen Tai clenched his fists and stared intently at the big screen!
He kept chanting, "Rise! Rise! Rise!"
However, when the index just reached the 3800 mark, it suddenly stopped moving!
Not only did it stop moving!
Instead, it started to fluctuate up and down, and began to oscillate!
Chen Tai's heart suddenly began to tremble uncontrollably!
It’s over!
Will it fail to rise again?
Where's the promised bull market?!
Chen Tai was so frightened that cold sweat dripped down his forehead.
Just then, a gasp suddenly rang out from inside the exchange.
"Quick, look at the news!"
"Holy crap! What a scammer!"
What the hell is going on?!
...
Countless stock market investors immediately burst into curses.
Chen Tai quickly opened his phone and saw that the first news item recommended was:
The stock market has recently experienced abnormal fluctuations. Sources suggest that the market should "cool down" and not become a gambling den.
Recently, a large number of new stock market investors have borrowed money from banks to invest in the stock market, which seriously violates credit regulations. Banks will strengthen their scrutiny of such borrowers!
[According to relevant departments, strict measures will be taken to crack down on stock speculation using loans! We will resolutely curb bad credit practices!]
[Breaking news! Major shareholders of numerous listed companies are cashing out and leaving without fulfilling their disclosure obligations! This has caused great panic in the market! Relevant departments will severely crack down on this according to law!]
...
Seeing this series of messages.
Even if Chen Tai was incredibly stupid, he could still see it.
The stock market is finished!
This is completely over!
There's no hope!
Chen Tainima was speechless!
Borrowing money from a bank to invest in stocks?
How could you bunch of scoundrels come up with something like this!
Do you think that just because you borrowed money from the bank, you can spend it however you want?
wrong!
The final interpretation rests with them!
Borrowing money to speculate in stocks is completely different from your original loan purpose!
And it's illegal!
Chen Tai really wanted to curse these bastards to death!
If you don't have money, don't go into the stock market!
Do you really think the stock market is some kind of wonderful place?
And those damn media outlets!
If the news of this listed company's shareholder cashing out and leaving hadn't broken, the stock market wouldn't have suddenly collapsed!
But you revealed it all at once!
Moreover, the list, the names of the listed companies, and their stock codes were all exposed!
It would be a miracle if the stock market didn't crash!
Chen Tai even had his doubts!
There's an invisible hand controlling everything from behind the scenes!
"Damn it! Bastards! This is a complete scam! A bunch of liars! Bastards!"
"Damn it! Do you really think we're easy targets? You already harvested us once yesterday! And you're doing it again today! Can't you give us small investors a way to survive?!"
"Sigh, this stock market crash is no less severe than a stock market disaster. Too many young investors have been ruthlessly fleeced for two consecutive days, losing everything!"
"That's right. Yesterday's collapse made many new investors realize the power of the stock market and they were ready to cash out and leave. But today, seeing the market recover, they couldn't bear to sell and ended up getting fleeced again."
"I've heard that many young people are borrowing money to speculate in stocks! Today's young people are much braver than us. I've been investing in stocks for so many years and I've never dared to use leverage, but they've borrowed all their principal!"
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