Category: Money tips Release Date: 2006-12-26
Recently, soaring stock plummeted, many new investors to feel the power of market risk, but also understand the importance of establishing awareness of risk. However, there are many new investors do not know the specific risk prevention techniques and methods.
In general, investors should seize the opportunity to see the soaring and selling, he saw plummeted to dare to buy. Many new investors can get exactly the reverse direction, and saw the stock price soaring when the rush to chase; saw a drastic drop of quickly sell at a loss to sell; the result is always to buy low and sell high, back and forth a few times very anxious state of mind, the results of the more do the less smoothly.
The new stock buyers are often not sensitive to changes in trends, if there is fitted, then, generally unwilling or unable to timely and decisive stop. Therefore, the new investors enter the stock market when, or to take some sound investment methods, such as to estimate the risk-benefit ratios, when the stocks of the investment risk is far greater than the expected return, the blind would not have invested in; when the stock index at a high oscillation when the stock position should be reduced; for their favorite stocks, do not bind itself to reach a certain profit targets, but should be adaptable to market conditions.
Most of the bull market where investors are making profits, but the other end of the bull market, certain shareholders have to foot the bill for the bull market of the feast. Summary investors loss is largely attributable to so few: First, greed, and second, panic and the third is irritable, four is a regret, five is the case of the wrong can not be promptly corrected, while procrastinating, missing the time to sell. In fact, both new investors, or the old shareholders, if able to overcome these five kinds of human weaknesses, then naturally prevent market risks.
Apart from the psychological control risk beyond, but also from the operational control risk. Bull market has many investors in the full storage operations, it will throw a profitable stock immediately after buying other stocks, funds in the hands not restless, stock accounts, always been a wide variety of stocks. In this case, once the broad market to adjust or meet fluctuations in individual stocks will face a greater risk.
The adjustment is often the stock market appears, select what kind of stock is also very important. Even when the broad market decline, it still has the stock appears daily limit. If we can hold the potential of high-quality blue-chip stocks, can serve to ward off risks.
Prevent risks also need to learn to give up. There are numerous stock market investment opportunities, but the investor's time, energy and money is limited it is impossible to grasp all of the investment opportunities. This requires that investors will have a choice, through a variety of investment opportunities, priorities, and many other hot spots the size of the successively measured, selected investment opportunities to give up a small can we grasp the basis of risk reduction greater investment opportunities.
