Why don't you trade too frequently?
1. Increased transaction costs: Each transaction may involve fees, stamp duties, and other costs. Frequent operations will cause these costs to accumulate and have a greater impact on earnings.
2. Emotional interference: Too frequent operations can easily cause people to fall into emotional fluctuations, and they may make irrational decisions due to impulse, leading to wrong transactions.
3. It is difficult to grasp the precise timing: The market changes rapidly, and it is difficult to accurately judge the best buying and selling points every time. Frequent trading may lead to frequent entry and exit at the wrong time, but miss the real opportunity or cause unnecessary losses.
4. Energy consumption: It takes a lot of energy to analyze and make decisions, which will make people exhausted and affect the accuracy of subsequent judgments.
5. Increased risk: Excessive trading may cause excessive risk exposure and increase the possibility of potential losses.
When formulating trading strategies, various factors should be considered comprehensively, focusing on the analysis of long-term trends and fundamentals, maintaining rationality and patience, and reducing unnecessary frequent alarm operations to improve the success rate and profitability of transactions
To achieve professional investment behavior;
On the contrary, it is gambling behavior, which satisfies the gambler's loss theorem
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