Investors who have been in the stock market for a long time are well aware that speculation is not an easy task, and there is a high risk of losing a fortune if you are not careful. So what principles should investors adhere to in the stock market to reduce their investment risk?First of all, investors need to realize that the trend of the stock market is more important than the valuation, to do the stock price even if the plunge is not easy to plunge, even if the surge is not off.

Understand that the purpose of your investment is to earn more profit, not to be careful to minimize losses. Investors need to be clear that they can't miss a strong trend to chase low valuations. And don't crash at low valuations in the mistaken belief of a reverse decline. And certainly don't feel anxious and rush to find the lowest price when faced with a stock price crash. While a crash can cause a stock's valuation to fall immediately, it often marks the beginning of a long-term downtrend following a Davis double. The direction of the investment is more important than the strength of the investment. If a stock has a high probability of going up, then don't get too hung up on the magnitude issue. Whether up or down, it will exceed investors' expectations, especially the decline, some investors only look at the fundamentals that the form is still good, and did not care about the size of the decline. The stock price rise does not do the wave, the rising process to do the wave, often lost a good chip, and then difficult to recover. Once that good stock, a ride to leave you behind.

If you want to become a profitable retail investor, you must firmly change your past thinking and learn to invest. Investing in a good company and a good price, but a simple sentence is difficult for many people. If the required rate of return is not too high, investors can completely choose some guaranteed investments, good companies choose the 10 most profitable listed companies, and these companies are guaranteed. Choose the top 10 listed companies, no matter from all aspects are extremely low risk, after all, can be among the stock market listed companies in all aspects of the conditions are very good, the stock price development must also be very stable. Of course, investors should also pay attention to the fact that a stock should have a clear signal when entering the market, and the same goes for exiting the market.

Not only that, but there should also be signals when adding or subtracting positions, clear stop-loss and moving stop-loss points, a stable win-loss ratio, and a good money management strategy, and in these cases, the investor can greatly increase the possibility of profit. After reading this article, most readers will know what principles to adhere to when speculating in stocks.

（Writer：Lany）