Principles of professional speculation Briefs Financial Tips Tips Bar

Category: Money tips Release Date: 2007-05-09

In fact, most market investors or speculators do not know themselves, eventually forced into a speculative investment is the phenomenon that we often see in this market. We believe that any sale of, if not quite sure that they are speculative or investment, its behavior is quite stupid, and can lead to frustrating failure. In fact, regardless of speculation or investment, with the ultimate goal is the same: profit! The world's greatest trader to have a useful and simple trading rules known as the "Crocodile principle", the principle is this: when you know they make mistakes, he immediately closed appearance! In the financial markets to survive, and sometimes need to be patient sometimes necessary confidence, patience, confidence does not mean that luck and do not know how to stop investors, we lose the chance on. Luck is a stop-loss of natural enemies. Stop-loss is speculative arts master. With regard to the contents of the stop-loss, all is based on speculation on the basis of the operation, only for the speculative operation stage. Really do not need to stop investment in the operational phase. Investment also has stop-loss, but more often called just profit. Is different from the speculative investment, stop stop, stop speculation, only in relation to price changes; investment relative to the fundamentals of stop-loss changes. Stop the problem, in fact only a speculative art of operations as part of a basic skills only. Depend on the operation of feeling in the market you will be doomed to fail, if in any one transaction, you can press a certain principle of objectivity in the transaction, you are actually better than most people do - and you have basically become a a market expert. According to the principle of thinking, the focus is not necessarily how much you know, market information, but rather you know the contents of the authenticity and relevance. In fact, the key to processing information: how many per day to extract the fundamental principles of the information.

In the mysterious world of the most speculative core content - the consistency of transactions. People in the market at a loss, although many reasons, but one of the most serious and most likely committed an error, that is, the Securities and Exchange policy inconsistency, lack of harmony. The reason why this error occurred because the people prior to the transaction and did not set itself a consistent trading strategy. As I talked about the first two, the vast majority of investors in the stock market transactions are not planned in the end is the investment or speculative investment has to be changed shortly ** speculation, speculation if the trap has to be changed simply long-term investments, think about your side most of the investors is not the case? Professional trading principles in order of importance are as follows: protection of capital, consistent with the pursuit of profit strategies and reward excellence. These three points is our basic principle is the highest decision-making all of our market, the guiding principle, we have achieved outstanding results secret. In our business philosophy, the protection of capital is the core principle. On the risk - reward point of view, the largest acceptable ratio of 1:3, if the market risk - reward situation is poor, I will hold cash. I am seeking absolute returns, rather than relative pay. Either do not do, to do to be profitable! If you think the market will always be elusive or even unpredictable, then you engage in stock analysts early as possible, or selling insurance or something. For all investors, this is the only objective - of course, there may be some degree of difficulty is too high. To ensure that this goal can be achieved, you can only clear chance of success in mastering, when - in other words, maintain a minimum risk, you can invest or speculative. To stabilize the capital increase, you must have consistency of profitability, but also to the need to safeguard your profits and minimize losses. Therefore, you must - to measure each of the decision-making the relationship between risk and reward in order to increase the consistency of the odds. Please be sure to keep in mind the above remark, it is almost all successful professional bodies ironclad operating principles, and only you have a deep understanding of the meaning of this sentence, you can enter the door to professional securities operations. Market will not always be located near the top or bottom. Generally speaking, in any market, bull market top and bottom of bearishness between a good professional speculators or investors should be able to grasp the long-term price trends in 60% to 80%. During this period, trading the focus should be placed on a low-risk consistency of earnings. As far as I more than six years on the market statistics show that any top and bottom of the combined running time of no more than 20% of the time, market conditions, and the vast majority of not more than 12% of the time, we have many of these key statistics, this is our basis for the formulation of the entire investment plan. In other words, in this less than 12% of the time you could easily fry the top end or escape. If I was a young, newly arrived to the speculators, my original position will not exceed 20% of the total capital, and set the stop-loss but will limit the potential loss of 15% to 20%, in other words, under this key design, my losses would not exceed the total venture capital of 3% to 4%. All this is just the first step in the content of all transactions, the initial transaction, and these principles for the beginning of persons engaged in market transactions, or a large-scale investors are applicable, because it can protect you from harm in the marketplace. I have always considered that the protection of principal and emotional health of the continuity of the transaction as to protect their own lives, as if the ill-begotten, later you will greatly be affected, I mean in the spiritual. Suppose I accept only 1:3 at most risk - reward ratio, even though I only once every three transactions a profit, my income is still considerable. In other words, if you each transaction may be paid at least an objective measure of the potential losses may be three times the long run, you will be able to maintain consistent profitability. This is the job market speculation of the principal financial institution management. Any person to enter the financial markets, according to my many years of observation, if he is expected to more than 60% of the opportunities that will be profitable, this is expected to soon be awakened by a very rude manner. Because these amateur investors almost no knowledge of funds under management, resulting in continued loss of their deposit. When I have a profit, still using the same reasoning process will be further began to pursue excellence, excellent pay. Greater margin, the greater the risk of capital investment to pursue higher returns. I often get a larger margin of profit added into the futures market or a strong dark horse in high-risk stocks, but, please note that this does not mean that I have changed the risk - reward criteria - I merely increasing the size of the position. This is what I call "active risk": the odds on my side, I put in more money. Even if I judge wrong, I lost, but only a small part of the previous earnings, I have a lot of money to engage in low-risk transactions. If you are determined to become a professional market investment experts, the content of the above you'd better be able to note down all of these simple truth is the most outstanding professional bodies an important part in funds under management.

How to determine the transaction risk? In particular, our stock market, policy analysis and technical analysis must be compatible, in the low he is on the left or the right of the pipe must not hesitate to start with. There is no right or wrong is not high or low, as long as the proper risk management and what practices are not important. Accordance with the methods of the market you see a flat upturned antenna 30 until the end of intervention I can market reports, and that the stability of the trend since the operation right of the dealer just Shentou into the trap. So Do not look down on the left side of transactions, does not understand should not make irresponsible remarks. Similarly, do not really understand the right of the transactions will not seek to buy, so as dangerous. A lot of wealth in the stock market really is used a lot of people the left side of the transaction, in the real estate market, too. Lee Ka Shing of Hong Kong real estate crash is not a time to take admission do? The key is to anticipate future trends.

Found on the left to make money, make more of a possibility of another stock-picking pairs have more preparation. But the stock market are not looking at what the West who earn more but to see who has been earned (ie general ledger, the trend is pulling Yang Xian). Quotes on the right side up as long as the transaction is more stable.

If you can only go long **, inside in a bear market, the real deal right there is no way ** to. I think the bear market is only the left side of transactions which make a fortune.

The left side of transactions are subject to adverse economic transactions, while the right homeopathic transactions are transactions! As a small investor to do the right as far as possible transactions, the flow of! The large-scale capital for trading in times of adversity! From a risk and efficiency point of view, the first admission assume their more risk, should naturally get more profits, then entry of the relatively small risk of commitment to get less profit, see you pay more attention to risk, or pay more attention to profits in the ! There is also an effective problem! First wave of the trend according to the effectiveness of the division is divided into short-term trends, medium-term trends, long-term trends, the background trend! Different trends, you can have a different focus on the direction of trade, for example: In the short-term trends, the more attention is Kuaijinkuaichu, short-term point of the critical region at the bottom of the right to buy short-term at the top of the critical region to the left to sell ,

Taking into account the balance of risk and reward, in a different city-state to be taken under different trading strategies. When the market is when most of the first to buy action should be taken to the left side of transactions, since the bull market of the callback is to digest profit plate, a typical example is the compass index of 0, No. 95 stuck. Take the right to sell the deal, otherwise how can earn 5,6 times. On the contrary, when a large short position when the market is to carry out operations on the left to buy risky transactions. Rebound grab right 9 times is also likely to be cut in on the 10th.

That at the end of trading on the left (top) is now the right deal that at the end (top) is in the past.

And financial capacity and market capacity is about. As far as possible not to do under normal circumstances the left side of transactions. Because such a relatively large risk and uncertainty.