Category: Money Tips Date: 2006-03-19
All winners are based on a large number of losers as the cushion of financial speculation market, even more so, this is the basis of the market cycle; all the market is more a large number of losers, The fundamental reason is the fear and greed of human nature is difficult to beyond. The logic of the success of modern speculation on the assumption that the public will continue to commit before the next error. This is fundamental to the success speculation.
Most of the losers in the market are lost to themselves, the biggest enemy of people from their heart. Opening the stock market charts, in the history of the great gap between peak and valley to bring enormous opportunities for savvy investors. The investment market is different from any other aspect of social life, when people engage in any other social and professional, the weakness of human nature can also be used to conceal themselves in some way, but in the investment market, each person must bring their own human weaknesses in the performance of fully out. Public bidding is a public display of human nature.
The specific external greed of human nature were as follows:
1, trading too much to expect a fortune overnight.
2, make a little money lose a lot of money, when the money, I feel, "two birds in the forest better than a bird in the hand", eager to profit-taking. In losing money, we hope the price level rise can actually lose another shot which led to the more bigger.
A concrete manifestation of the fear of human nature in the market, rising repeatedly at or close to the maximum point, afraid that they missed the bus without fear of the market is already very fragile and buying. The long-term decline in the market around a pessimistic, fearing the arrival of a bottomless pit end of the world sell at a loss.
Outstanding figures in human history, such as Newton, Einstein, Roosevelt had suffered a setback in the securities investment. Newton said afterwards: "I can calculate the orbit of celestial bodies, but can not calculate the madness of human nature." Thus, in the market to remain rational and sober is how rare, but to become a winner, you must overcome its own weaknesses. Courage to insist on independent thinking, not just parroting. As Warren Buffett said: "We will also have fear and greed, but greed of others when we fear when we fear others greed."
Trading in human weakness, but it is an inherent nature, you want to be very difficult to completely overcome, but their performance levels can be controlled, successful investors are able to successfully control them in a moderate within the scope not to affect the rational thinking. Well-known American psychologist Dr. Fan Tapu investment in the investigation of a large number of successful traders, after a successful trader summed up the mentality and values.
1, money itself is not important.
2, losing money can be tolerated.
3, the financial operation is a game.
4, readily accept failure is an important key to success.
5, an approach know win.
Many people involved in financial operations objective is to big money. This is caused by their failure, because they over-emphasis on money itself, it is difficult losing money when the stop-loss, and even make money when you can not hold long. If the financial operations as a game, but must follow the rules of the game play, everything will become very easy.
In addition, despite well-planned and willing to frankly accept defeat, outstanding traders will try to the bitter fruit of many failures, but they know that to the long term, his must be a winner, and therefore easier to deal with a small setback. Before entering the majority of traders, but it will do a detailed study of the market at this point, they not only have the confidence and determination to be successful in their approach is necessary, therefore, a real confidence and false confidence in the differences exist among the three.
First of all, the confidence stems from a genuine understanding of the market, if only the confidence, then perhaps it will have been a series of trouble;
Secondly, for their methods of operation must undergo a long period of testing, if the blind faith in the correctness of their methods of operation, such as confidence is an illusion;
Finally, have the determination to become successful traders.
