Professional securities investment strategy Money Tips

Category: Money Tips Date: 2006-01-12

(A) With regard to investment speculation

Market are novice or a professional veteran of many the wrong way by trying to spend a lot of time studying the stock market a variety of knowledge, or trying to find some way to use them. The results, in addition to a lot of boring shallow stock analysts and a variety of so-called "beat the dealer," the tips, the impossible to find any results.

I hope to give readers our market observations and find that they help me in a few years, in order to create each of the effectiveness of investment company on behalf of lucrative and stable rate of return, but also a loss in any one year have not occurred, it sounds hard to believe, Please read down the text.

This article is written for investors and speculators, it is first necessary to find out the meaning of investment and speculation. Speculators focus on short-term market trends, they establish a market position, and hold a few days, a few weeks or months of time; investors mainly consider the market's long-term trend, holding positions as long as several months for several years.

However, the fact that most market investors or speculators do not know themselves, do not understand the art of investment or speculation. Especially the speculators (who accounted for the vast majority of the entire market) often according to the market in the short-term price trends, through effective and accurate business in profit. In most cases, the market is not in accordance with their ideas to run, so the speculators turned to investment "rules" to deceive themselves, often told himself: "The performance of the company is really good." Eventually forced to become a speculative investment is the phenomenon that we often see in this market. But the contribution of speculators to the market provided the market with liquidity indispensable (liquidity), in most cases, can also promote the smooth transfer of financial assets, and through asset allocation to play their best features.

The investors often all funds will be full of confidence by promising to buy their own stock, and claimed that the number of price not less than the number of out and so on. But often after a little time, he shares his vision is always less than the price up, and even see a little bit far from the hope that the next time you see him, the general replied: "I really was, etc. can not have such a long time, and just for a bar, really do not understand, performance is not so well be up!. " In fact, these so-called investors why he has forgotten the original reason for buying the stock, and because the performance of the company before he made a good investment option, but Xu could not understand most people that does not mean that good performance The company's stock rose rapidly in a short time. For the intrinsic relationship between performance and price, we will discuss in detail in a later chapter.

Speculators continued to cause investors through the market liquidity and ultimately to enjoy the company's growth in profits. But the problem is that almost no one is willing to long-term investment, poor quality of listed companies is one reason, is another main reason for the fun of speculation. People often criticize the mentality of too much speculative investors do not focus on long-term investment, in fact, the uncertainty of financial markets so full of endless speculation in the fun, imagination, suspense. We believe that the fun factor can account for more than 30% the proportion of speculative reason.

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. This is what I have decided to lock this topic of speculative investment on the basis of behavioral reasons.

However, readers do not misunderstand, I do not want to just discuss the speculation, and just want to tell you that speculation is only a part of the investment process, a stage, an operation technique. In fact, regardless of speculation or investment, with the ultimate goal is the same: profit!

The meaning of speculation is not gambling. "Cast" means to seize, grasp, proper use, search for; "machine" refers to the opportunity, the timing and the nature of things the law. Poker is almost an expert on gambling for a living, tell me the secret of his success to survive. The first, if you want to win, you have to understand the basic rules of playing cards; the second, when the bad luck, only one-third of the input to the stake brought immediately do not play. I was thinking, my God! If the operating principles of his years on the stock market than most investors is much easier. This second section is the scope of this discussion: definition of tables on the minimum or the stock market lose money in the transaction stop bit.

(B) stop-loss is speculative basic skills of art

The world's greatest trader has a useful and simple trading rules known as the "Crocodile Principles" (Alligator Principle). All successful traders enter the market before, are repeated training on the understanding of this principle.

This is derived from the crocodile swallowed by: more prey, trying to struggle, crocodile harvest more. Assume that a crocodile bite your feet; it bite your feet and wait for you to struggle. If you arm trying to break away from your feet, then it's mouth it will also bite you in the foot and arm. The more you struggle, then stuck deeper.

In the event that alligator biting your feet, be sure to remember: your only chance of survival is to sacrifice a leg. If the market language, this principle is: when you know your mistakes, he immediately closed appearance! Can not make any excuses, and look forward to on the grounds or take any other action, and quickly leave!

In fact, whether the stock market, foreign exchange, options trading, their trading skills are similar. "Stop" the importance of only a few people able to "enlightenment", so also few people can make money in the financial markets. "Stop" Like a sharp knife, it makes you blood has been flowing, but it also enables you to not to hurt the strength to live; it can not extend your loss makes you passive to active constantly looking for new hot spots. 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.

We have a deep understanding of this principle, the principle is also derived from bitter experience. Is also the mid-90s, I am in the company responsible for managing a small-scale funds in the stock to achieve a better earnings and take advantage of the stock market adjustment, I have to establish a commodity futures A small sell positions. Soon prices began to rise, to stop bit. However, I was not only failed to accept the loss of 10,000 yuan, but at a higher price to continue to build a bigger selling positions. However, prices continued to rise. How to do? I rely on the news of lower prices of raw materials has also established a small position. Results, it was rumored that the goods will cut the news! Every step I take remedial measures, the situation will deteriorate further. Market, the crocodile finally feast, my 10,000 yuan stop the expansion of 80,000, it is only because I did not comply with the principles of which I knew. In early 2099, when my company wrong in the blue-chip stocks began Jiancang when, relying on technology to quickly stop the transfer of funds to low-cost large-cap stocks was a strategic victory.

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I talked about so much more than on the content of 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. This is why I stop to talk about so many issues, not to encourage people to actively speculation, but against the reality of the securities market is concerned, do not believe, you can not investigate any of the investors, fund managers, whether they are really in the stock market investment? Their proportion can exceed 10% do? The answer is obvious!

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. Investors claimed that investment never really need to stop it is wrong, because, including such big investor Warren Buffett is also stop-loss, where stop-loss? Of the investment firm lost growth, the fundamentals are deteriorating, stop!

Recently, when I was special family rooms and a customer talking about the operation of the problems, the customer then a stressed market risks, elusive nature, and serious concluded: securities investment market there are winners and losers, there is no experts. I am very solemnly tell him that you are wrong.

I have contacted the few industry friends, indeed have a real market experts, they are excellent investment or speculation and stable rate of return, year after year, but they never worked for anyone else to talk about the market problems, but they never published stock analysts. I can tell you a secret friend to all investors, the market experts do but not say, but most of the Stock Analysts said that to do well. At least, I am familiar with the field, in some respects rude to say that I definitely do some more professional.

Third, specialization operation is the only way to market profits

I spoke on a stop-loss problem, in fact only a speculative art operations as part of a basic skills only, from this issue I will lead you into the speculative area of the art world, from the philosophy and technique, truly into this for the majority Investors that is familiar and strange world.

Let me use an example to illustrate the principles of thinking according to the function. June 28, 1999 morning, I think the market has always possible plunge in the collation of the trend. Before the bell, I started to call one to a few clients, telling them my view, highlight the following:

I think that the upcoming wave of the market rates, or a major amendment to the more urgent of the stock market decline. Since since May 17, the market will continue to rise in the main section. History of all sharp Quotes in less than 20% of the trend, duration longer than this wave of Quotes. "The Shanghai index" has risen 70 percent, compared with the same type of B-share market, but also a sharp rise in cases, some B shares almost every day, selling a daily limit; broader market, after repeated high volume can not be sustained to enlarge - This everything is obviously short signal.

The index continues to rise, market sentiment is very positive, mainly due to the hype the media, so-called "cross-century bull market", "without saying that the bull market top," and so on. But the vast majority of stocks have emerged to stagnate and decline in the mid-term.

So, from 28 onwards, for two consecutive days I have repeatedly explain to clients the reasons I see the empty, while in the hands of the stock dropped 1.1 points out, because I know that once a slump in the hands of a large number of stocks simply can not run away. These two days, I have been short, until the final out of the hands of a share of stock until the end.

Not be discussed at me if I was an expert, from the analysis of the market to determine the whole process of point of view, I do not have to resort to any information within the Mu Although some people have to know ahead of investment funds in the ship. I have all of the criteria or principles are in accordance with certain objective criteria to go by a programmable factor to the judgments. This is the kind of professional analysis and judgments.

Of course, if you are a long-term investor, you do not need to look at this so-called speculative principle, is not it? Many investment funds invest in during a slump may be considered for more than 40% would prefer to not want to trap out while another matter.

Depend on the operation of feeling in the market you will be doomed to fail, people often say "a person feels good market," is not appropriate, "feeling good" people from the subconscious has a sense according to some objective-oriented professional principles in operation. 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 market expert. According to the principle of thinking (thinking in essentials) is a current topic.

(D) In accordance with the principles of thinking

Let us continue to recall the experience of the last issue, June 30, the terrible moment emerged. Opened higher after the general trend of rapid decline. A rebound in the middle of even the poor are not - the situation is entirely out of control. After four days, "the Shanghai index" fell 203 points, closing.

From the end of May to a finished goods since Jiancang far, I have managed portfolio is far from 165 percent profit to run win 70% of the big city, the rate of increase. Finally, not only avoided the drop to keep the profits, but also the mentality is more relaxed, happy and began to wait for the next market opportunity.

I do not know "June 30" from the crash, from June 28 to 29-day shipment is not a coincidence or luck. I have mastered this wave of declines, and luck has nothing to do completely. I am using an analysis of each of the criteria - including the previously mentioned in a number of reasons - have shown the broader market will plunge; all the odds are on my side.

One by one and I will explain how I predict this kind Quotes of. However, if I have to approach all of the content to one sentence, it is: According to the principle of thinking (thinking in essentials).

The focus is that you may not know how many market information, but rather you know the contents of the authenticity and relevance. Securities class weekly and daily newspapers, there are exquisitely printed copies of each chart and comments, describing the current stock, bonds, commodities futures and trading tools of the stock market. Variety of information, processing all the information and understand the meaning they represent, it is beyond the capabilities of the human mind. In fact, the key to processing information: how many per day to extract the fundamental principles of the data (essentials).

To acquire this ability, you have to govern the principles of market information. The previous example. My point is not whether you agree with this principle of right or not. Is to show that if we understand the basic market principles, it seems a very complex market phenomena can be transformed into a relatively simple where knowledge.

Determined according to the principles of thought (market trading operations), is one thing; how to identify the relevant principles is another matter. Read the comments about the securities market, you will find each of the "experts" have a view, these views are often contradictory.

In this article, the length of the future, I will propose: Learn the basics of the market, and how to use this knowledge earnings - a successful market players need to "speculative principles."

Recently, by my company for the large customer's "aggressive" and "Steady" two different styles of fund portfolio performed well and stable, in the broad market in August from a record high since the process of adjustment, although the broader market higher amplitude , but the average or less than 0.1% (on the card from 2114 points to 2125 points), two of our portfolio in a 30% average return. This achievement was sufficient to show disdain for the majority of professional investors. A customer kept asking me whether there is insider information, otherwise, why avoid the adjustment in August, how can grasp the start by the end of September? I told them that do not rely on insider information, prepared in full accordance with our strategy to deal. In the future we will continue to achieve such stability results will be consistent in accordance with a predetermined strategy to deal, that is what we today talk about the subject of speculation in the mysterious world of the core content - the consistency of transactions.

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(E) consistency of the transaction - the first part of

If you look at the history of the great traders of the information, you will find many of them have been bankrupt at least once. In addition, we also know that only about 7% of the investors can make money. This is how what is going on?

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 money in the short term was turned into speculation, speculation if the trap has simply replaced by the long-term investment, think about your side most of the investors is not the case? In fact, this is the domestic medium and small investors often say: 7 losses 2 Heiichi earn. If you as a professional investor needs in the market profitable, you have to do in the market with these small and medium investors in the market is somewhat different in that it may occupy a small part of the profits, of course, the vast majority of the small part of the profits is based on the majority of Investors make mistakes foundation. It sounds cruel, but the current actual market conditions is true!

Of securities transactions as a career person, my goal has always been: Over time, to stabilize the money. I have always regarded the transaction as a cause of their own to run, but a prudent entrepreneur the first thing we want to be able to maintain his regular expenses, and then the pursuit of steady earnings growth. I never obsessed with big money and the opportunity, first and foremost task is to protect the capital, followed by the pursuit of reward, and then part of the profits for high-risk transactions. The results, big money and the opportunity still a commonplace occurrence, but the important thing is that I always do not take excessive risks.

I often encounter this situation in the transaction: I bought the look favored by a variety of robust and obedient, the stock in line with the one we are asking for features, I just think it up to standard but to buy it, but such stock can often appear very overjoyed surge, and I certainly welcome it, because it can shorten our working capital cycle.

This is why the transaction consistency of operation of the transaction leading to the ideal outcome of why.

The last issue, I talked about the consistency of the principles of the transaction, why it is so important? If there is no consistency of professional investors a loss of means of transaction is in the affirmative, I have managed the funds in profitable long-term stability has been able to fully benefit from this. Then it is the core of that? Today will be talking about this.

(E) the transaction consistency - Part II

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 my investment or speculative strategies, each one has a different weight in principle, but there is convergence between the relationship. In other words, the capital protection will result in consistent profitability, which in turn allows me to pursue excellence rewards. Maybe some investors see here, feel somewhat abstract, we have the following further explanation.

In our business philosophy, the protection of capital is the core principle. In other words, any potential market activity, the risk is my most important consideration. I earn a lot of profit made, I will first consider "the potential losses suffered as I can how much?" On the risk - reward point of view, the largest acceptable ratio of 1:3 (this ratio will be at a later to be a detailed explanation). If the market risk - and reward is very bad, I will hold cash. I am seeking absolute returns, rather than relative pay.

Hyundai's investment fund managers have been trained to accept the concept of selling gray. If the broad market index fell 20 percent, the fund fell by only 10% of the net, investors should feel happy - after all, his performance still exceeds the average level of 10% of the!

Either do not do, to do to be profitable! My previous assistant to an investment company talking to repeatedly emphasize this point. 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. All the indicators show that long-term trend in the stock market has been near the top, then why does your portfolio 100% of the full position then? In order to earn more pay a few percentage points, should be worth the loss of 50% of the risk? In the 99 July to 11 month period, we are almost empty-handed, there is no stock grip in his hand.

My trading system prompted me during this period, the market risk - reward ratio is far from 1:3, can not meet my minimum requirements for the protection of the capital, let alone the pursuit of excellence in profits. Moreover, the existence at that location, or the probability of upward or downward (if the place is very social event, Hu Zhi completely dropped by another 400 points down to 1930, the U.S. stock market will prove that any irrational market events may occur). Later, when a significant change occurred in the market, my favorite of the risk - reward closer to 1:3 than at the beginning, when I whistled again as he plans to go where the Lunar New Year holiday, while market began to pick up bargains a.

In the future you continue reading the contents of this article, it will be discovered that you can also do this.

Nearly two weeks, with the Shanghai and Shenzhen broader market has hit a new high, there has been a lot of good varieties of speculation, since the time when the index rose more than 85% equity is always consistent with the general trend. Some of the stock's performance is better than the company's two funds managed portfolio holdings varieties, why I'm not going to replace it? Securities and operations management as a career is different from the amateur investors, we must be operated from beginning to end in accordance with the development of strategies, and programs to implement. From the global point of view, has completed a period of Quotes, 90% of the species or less the same, just up the process where the timing, rhythm show is different. This mode of operation in the end, what good is it? I do not speak first, I hope readers about their own experiences after the reading. In fact, this is the last issue discussed in the text of the consistency of the transaction, current I continue to lead us in the core areas to explore when you where this issue.

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