Why Individual Stock Investors Struggle to Make Money

In today's society, investment and financial management have become hot topics of discussion. Whether it's equity investment in companies, purchasing funds, or investing in bonds, real estate, movable property, and other types of investment methods, they provide us with a variety of choices. However, as we delve into these investment channels, a disheartening fact gradually emerges: retail investors, also known as the general public, find it extremely difficult to make money in the stock market.

First, let's clarify the concept of "retail investors." Retail investors typically refer to those who do not have a professional investment background and trade stocks based on personal judgment and information. They often lack systematic financial knowledge and investment experience, yet they harbor dreams of making wealth in the stock market. However, the reality is harsh. According to research by Yale University professor Robert Shiller, in developed countries like Europe and America, the proportion of retail investors making money in the stock market is less than 10%. This data, although shocking, is an undeniable fact.

So, why is it so difficult for retail investors to make money in the stock market? The reasons are not complicated. First, investing is a very professional activity. It requires investors to have a solid financial knowledge, keen market insight, and rich investment experience. However, these conditions are hard to achieve for most retail investors. They often make investment decisions based on hearsay or personal preferences, which is akin to blind men feeling an elephant, and the results are predictable.

Secondly, retail investors are often easily influenced by emotions during the investment process. When stock prices rise, they may hold on due to greed; when stock prices fall, they may exit due to fear. This emotional investment behavior often leads retail investors to miss opportunities or fall into the quagmire of losses.

Furthermore, retail investors also have obvious disadvantages in terms of capital scale and information acquisition. Compared with institutional investors, retail investors have smaller capital scales and cannot form effective investment portfolios to diversify risks. At the same time, they are relatively behind and one-sided in information acquisition, often unable to understand market dynamics and corporate information in a timely and accurate manner.

However, despite the many difficulties retail investors face in the stock market, we cannot deny the value and significance of investment. In fact, investment is a long-term and stable way to increase wealth. As long as we can maintain a calm mind, rational judgment, and a continuous learning spirit, we will definitely be able to find our own opportunities and wealth in the stock market.

For retail investors to make money in the stock market, they first need to abandon unrealistic fantasies and lucky psychology. We must recognize that investment is an activity that requires professional knowledge and skills, not a game that can easily obtain huge profits. Secondly, we need to continuously learn and improve our financial knowledge and investment capabilities. By participating in training courses, reading professional books, and following financial news, we can broaden our horizons and improve our professional quality. Finally, we also need to develop reasonable investment strategies and risk control measures to ensure the safety of our investments.

Investment and financial management is an activity full of challenges and opportunities. As retail investors, we need to maintain a clear mind, rational judgment, and continuous learning spirit to cope with market fluctuations and risks. Only in this way can we find our own path to wealth in the stock market.