What is the biggest risk of buying stocks?

What is the greatest risk in buying stocks? The stock market is like life, and life is like the stock market. The greatest similarity between them lies in their "uncertainty." We cannot predict what will happen tomorrow or what will occur. This is even more true in the stock market, where significant changes can happen in the next second, such as extreme price fluctuations. Therefore, uncertainty is also the greatest charm of the stock market and life!

Facing the uncertainty of the stock market, the weaknesses of investors are exposed. Dialectical materialism tells us that internal factors play a major role. Although the stock market is unpredictable, what ultimately determines our gains and losses as investors is ourselves. We cannot change the stock market; what we can change is ourselves.

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From the perspective of internal causes, I believe that the greatest risk in buying stocks lies in the investors' own ignorance, which is "people are not good enough." There are several specific manifestations:

1. Laziness

Not loving to learn investment knowledge and not liking to think deeply about investment issues. The vast majority of people buy stocks without even reading the company's annual report. What is this if not laziness? When I first entered the market, I understood that stock investment requires learning first, and I am a very diligent person in investment.

2. Arrogance

The greatest risk in the stock market is to see oneself as a smart person and to think that one is better than others. With such a dangerous idea, one will try all sorts of things and make various attempts. When I was young, I was quite arrogant. After learning a lot of stock trading techniques, I thought I was invincible. I used to look down on world investment masters like Buffett, thinking his investment was very rigid and outdated, with low efficiency.

The cruel reality has taught me that years of frequent short-term trading have made me realize that I did not have a correct assessment of myself. When I knew I was ordinary, I calmed down and delved into investment, and I embarked on the right path of investment.

There are many arrogant people in the stock market who dare to do any market and want to do any market. They always regard themselves as geniuses and others as fools. They always think they can cut other people's leeks, only to find out in the end that they are also leeks.

3. PatienceIn the stock market, 90% of people do not hold stocks or funds for more than a year. Most people lack the patience to hold long-term. When I was young, I lacked the patience to hold stocks, holding them for only one or two months at most, and as a result, I missed countless big bull stocks. Now, every time I think back, I feel regretful.

4. Determination

What is determination? Determination refers to a person's willpower and resolution, which can remain firm and stable in the face of difficulties, temptations, or adversity. People with determination can overcome temptations and difficulties, adhere to their beliefs and goals, and take action for them.

In stock and fund investment, people without determination cannot hold onto stocks. I only gained determination after I reached middle age. That year, there was a heavy snowfall, and I was alone in the courtyard of my workplace sweeping snow. I swept from morning until night, clearing all the snow in the courtyard. It was on that day that I gained determination. At that time, I realized that as long as one can make a vow and persist, many seemingly impossible tasks can eventually be accomplished.

The current A-share market is a test of the willpower and determination of stock and fund investors. Facing the continuous decline of the market and the increasing floating losses in the account. To remain steadfast in the belief in A-shares and firmly believe that the current market is at the bottom, all this requires determination. Unfortunately, most people lack determination.

5. Perspective

Yesterday, I was chatting in a group with my friends, and when I mentioned that I had lost a house in investment this year, several friends immediately advised me to stay away from the market and cut my losses to protect my principal. In my view, this is a manifestation of a small perspective. People with a small perspective only focus on immediate gains and losses and do not consider long-term changes. Such people find it difficult to make money in the stock market.

In summary, the biggest risk of buying stocks is not the current market crash, nor the widespread bearish news. It is the lack of diligence, humility, patience, determination, and perspective in us investors. The lack of these virtues in investors themselves is the biggest risk of buying stocks.