One of the major stock-operation techniques anti-mass psychology Money Tips

Category: Money tips Release Date: 2006-10-10

In the stock area of operation, there is a very important principle --- to be implemented and the general public contrary to the reverse of psychological operations, that is an optimistic voice in the public should be vigilant when in the public courage to undertake a pessimistic. This is because the general public were mostly "chase sell into," the.

From the theory, stocks, stock prices more inflation, the higher the risk, however, starting to go public have confidence in; shares fell more, the risk lower, but in general investors are increasingly worried about. For investors, how to keep the speculative fever high sensible judgments as well as in the general public when the fear of fear remain confident enough to invest a great relationship between the profitability.

Volatility in the stock market relatively small, but also show the importance of anti-mass psychological operations. For example, in early 1987, the Taiwan region, many economists and economic experts consider that the NT dollar to appreciate, Taiwan's export-oriented economy will suffer, indirectly, economic growth slowed, as reflected in the stock market will be more than one quarter quarter Light, quarter over quarter worse. The result is, however, the stock market hit new high, soared to more than in September, on the one that the public good, the stock market will break through 5,000 points appeared to be at a time when misfortune comes, the stock market down sharply Cuo, coupled with the impact of the U.S. stock market crash, Taiwan's stock market drop of more than 50%. In early 1989, some experts predict economic growth rate will slow down, the stock market will rebound only just fallen materially, did not expect the stock market was hitting new highs. These phenomena show that the trend of the stock market psychology often run counter to the general public.

The main force and the general public tend to adopt the opposite of psychological operations, for example in the technical side shows broader market break at the end, the mass pessimism and a blaze, the main force was strong buying in the technology through the head; the public an optimistic and rush hours, Also the main large-scale selling, as adjusted.

Since the reverse operation with the general public, they must understand the psychology of the general public, the following suggestions:

Investment adviser's views. Most investment advisers to encourage customers to bargain-hunting buying,, sell into rallies, but, in reality, many examples have shown, investment consultants have suggested to the contrary, therefore, when most investment advisers, when the market outlook, optimistic view, and the prices tend to near the peak, most of the investment adviser, when pessimistic, and the prices are close to the bottom.

Mutual fund cash ratio. Mutual fund's investment portfolio to hold cash increases, indicating that stock prices should be down, hold less cash, indicating that stock prices should rise. Therefore, the ratio of cash held by the Fund can be used as an indicator, when a very high percentage of cash holdings, they often share price is nearing the bottom, whereas a very low percentage of cash holdings, stock prices often near the peak. In addition, mutual funds, cash holdings and the first three months of the cumulative ratio of the number can be redeemed as a reference, the fund when the stock fell redemption pressure, so if the amount of cash holdings and the first three months of the cumulative demand ransom a ratio greater than 8 times the number back, the fund redemption pressure on smaller, when this ratio is less than or equal to 8 times, a small amount of cash (the purchasing power of the smaller) and the large sell-off often lead to stock price fell.

Part of the popular brokerage business is thriving. If the brokerage business department in the past boiling endless, and now wants to come and invest in customer-ignoring Quotes worse, indifferent to the opening stock price fell, in the chess chat. Racks of booksellers in the operational aspects of the books can not sell the stock at this time is usually stock has bottomed out. On the contrary, when the popularity boiling an opening-round there will be limit-stock situation, price is usually close to the peak at this time, shareholders are advised to reduce or withdraw wait and see. There are two stock market saying, "I take what others discard, people take me I" is the best portrayal. When the public does not join in the fun, is to buy time.

In short, investing in stocks in addition to understanding of the underlying analysis and K-line analysis, the public should also be studied psychology, successful investors are usually independent, and acting stubborn investors.

(Shares altar nag)