Category: Money tips Release Date: 2006-03-11
Stock of the situation need to keep an open mind This is obviously a common sense, but in the field of portfolio investment, there will always speaking very simple act, but doing it is particularly difficult. Investors may repeat the same mistakes again and again by no means is his mental defects.
When this happens, they often do not change with the market he could not find the relevant facts, data and correct methods of analysis, but because he is more vulnerable to their own emotions and ideas and social impact.
How can we remain objective analysis of their attitude? 1. Create a virtuous cycle to overcome the mentality of individual investors are biased in judging Quotes trend, particularly vulnerable to the sale of their own experiences and the impact of trading conditions, shareholders in the rally easy to be overly optimistic, in the fall of holding cash at hand to easily pessimistic about overshoot; in the early Quotes no patience, and low or high into the goods sell at a loss, to the end of the Quote, but also learn from "experience", delay in shipment, or purchase the results just have to accept "set", and so the vicious circle again, so the mentality was seriously unbalanced.
To overcome personal feelings to mislead is a quite difficult matter, an effective way is to adjust the section to follow the market, making efforts to enter the buy low sell high in a virtuous circle.
This adjustment program should initially be a mechanical implementation of the process, even if the chance of incurring losses and let run firm. This is the opportunity cost to obtain an objective attitude, in the long run, this cost is very low.
2. Trend set by faith, to overcome some kind of mass emotional interference with the market sentiment is not widespread and readily available for the current matter, it needs to Change the role of energy and time. Generally depressed market sentiment is a sharp drop in prices or long-term decline in results, the general market sentiment running high, by contrast. Therefore, the market is the trend in the occurrence of widespread sentiment has been a significant release of energy results, so it is a sign of the end of the trend. This time, investors can be divided into two categories, most will be trapped in the general mood, but can not be an objective understanding of the emerging new trends, while some others would feel the general trend of giving birth to a new time, and derive and contrary to popular belief.
In order to overcome the public mood may cause interference, investors can adjust their theory to the contrary attitude, its basic concepts are: (1) prices rose a long time, light-weight unit coins, prices fell a long time, light-weight unit currency; (2) panic generally arise when purchasing opportunity, excitement, a time when the prevalence of opportunities for the shipment. Another attitude adjustment is an effective way to market analysis itself. Through the measurement of price movements, often to get an exact idea in general, thereby contributing to the formation of correction 1:00 regarding the feelings and impulses.
3. Insist on independent thinking, to overcome the authority of the concept of restraint in carrying out the investment trends in judgment, are also vulnerable to the impact of the two ideas: First, major media market commentary; the other is all kinds of stock market maxim.
With regard to market comment, the use value first in that it provides market information, followed by analysis of thinking in its novelty; and take their point of view should be suspected, requesting different or ignored. For the experience, knowledge or time, and so less investment in people, the concept of all kinds of comments to be comprehensive comparison, knowledge derived from them, then may well be an indirect analysis method.
Investment maxim is usually the concept of sublimation of operational experience predecessors. However, no etiquette to follow the stock market, and mutual contradictory maxim can Xiangan coexist. How to deal with these investments, "canon" mean? (1) The maxim is an investment philosophy, it can size up the situation for investors and the sale of decision-making ideas, sounded the alarm, but can not provide specific operating point, not a substitute for objective analysis. (2) investment philosophy because, as a result the city because of the situation and have their own characteristics, and thus to make investments with the motto should be the camera may be, must not be applied mechanically. For example, "The fall did not fall, it should bullish" is a particular benefit Quotes by multi-factor role in the emergence of a particular trend, however, the fall might not fall for the big ship and the main result of the temporary support the market, in this kinds of cases, this does not fall down, more terrible afternoon.
Stock market adage: buy stocks is to challenge ourselves. Between buying stocks is to invest the interest, passion and reason the big contest, cool and objective mind important here, but this is not everyone has the self-cultivation.
