Today, I heard a sneer and became somewhat worried about the enthusiasm of ordinary people for stock trading. It was said that there was someone who carried a sack of hidden gold to the securities business department insisting on buying stocks, but when asked what stocks to buy, he said he did not know, yet insisted on purchasing them anyway.
China has always been a country with high savings. Due to the lack of investment awareness among common people, funds are not only unable to be transformed into capital for appreciation, but also suffer from property devaluation due to currency depreciation. Therefore, from the perspective of asset preservation and appreciation, the enhancement of investment awareness among ordinary people is indeed a good thing. However, securities investment is a highly risky and very professional occupation. Enthusiasm alone is not enough; professional knowledge is also necessary. Hence, the main body of the old Cheng's securities market is institutional investors. A successful market requires mature investors as its premise. How to change the investor structure of our country's securities market remains a difficult task. The government has the responsibility to guide investment behavior correctly and strengthen market supervision, making every effort to maintain market stability and avoid drastic fluctuations in order to protect the interests of individual investors. In particular, we must strengthen the management of information disclosure because, in terms of obtaining insider information, retail investors are always at a disadvantage!
Although many people believe that the overall trend of our country's securities market is positive and will steadily rise, it does not mean that all stocks will increase or that buying any stock will make money. As the market continues to mature, the polarization of stock prices will gradually deepen, and the market may experience repeated fluctuations, which means that investment risks will indeed increase.
Based on my profound understanding, for the vast majority of individual investors, paying attention to the following aspects might help reduce investment risks: 1) We must establish a strong risk awareness. There are risks in the stock market, and we must control the risk range within an acceptable level; 2) Under normal circumstances, borrowing money to trade stocks should be avoided; 3) Stock selection should involve more consultation with experienced individuals, gaining as much detailed understanding of the selected stocks as possible. Stocks with high price-earnings ratios, smaller declines in recent periods, or poor performance should be approached with caution; 4) Beginners can try cautiously without over-investing; 5) Professional institutions should be entrusted for financial management or various funds purchased to lower operational risks and achieve stable returns.
The enhancement of public investment awareness is indeed a good thing, but it is also a major concern for the stock market. For this phenomenon, we should neither criticize it blindly nor find it strange. We cannot let it spread unchecked or create chaos. It must be guided, otherwise, water can both carry and capsize a boat, which would not be beneficial for the sustainable development of the capital market.
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