Sustained and stable profit model Money Tips

Category: Money tips Release Date: 2006-12-25

Since the current funding is small, my operating strategy to operate the main band, the future will gradually transition to long-term investments and

- Yingge Ceramics (Dr. Tao)

In the stock market, no matter how large or small funds of funds, require a profitable model. If you want to achieve long-term stock market returns, the model must also be a profitable model for sustainable stability. "Warren Buffett and George Soros's investment habits," a reference book

A "complete operating system." First of all you need according to their personality (including the investment objectives, knowledge, experience, skills, abilities and interests), to form their own investment philosophy (the nature of the market beliefs). Then you according to their investment philosophy to determine the scope of their abilities (depending on your competitive advantage to understand the investment target) and investment criteria (the characteristics of a good investment). Then, design your own investment portfolio structure, establishing search strategy, found that match your investment criteria. Then, the question is how to trade, when to buy, how much to buy (the proportion of the total portfolio); when the clearance profit stop exit when the operation requires an established policy. Finally, how to look at errors, need to constantly improve their own summary of the operating system. A sustainable and stable pattern of earnings must include a complete operating system.

I have always thought about the stock market there are many kinds of investment philosophy, the stock market in the profit model, there are many kinds. Short-term operation can also be profitable, band operation can also be profitable, long-term investments can be profitable. Various models of the most critical issue is to appropriate the amount of funding their own personality and size.

Large growth funds and small funds in different difficulty. Small frequent short-term funds through the operation, get a higher annual income is very possible, but the funds (for example, dozens of Buffett, tens of billions of U.S. dollars) is unlikely to get through the short-term operation of high-yield. Thus, there is a stable profit model is the most important, and this mode of huge amounts of capital, if applicable, and certainly suitable for small funds, in turn, did not.

My personal philosophy is currently establishing an investment fund targeted at large-scale approach. First of all, my method is the long-term operation, hold the stock for at least on a "month" as the unit of time, I am basically not do short-term, only the long-term operation of my own choosing stocks. Secondly, my method is a combination of a number of equity investments in the stock based on the current method of choice is a combination of a number of stocks to accommodate tens of millions of money should not a big problem, but several times through a public stock picking verification. Of course, since the current funding small, action-based strategies to band operations, the future will gradually transition to long-term investments.

My current profit model incorporates many of the world masters successful investment practices and experiences. For example, Ou Naier the "CANSLIM" system, the essence of Buffett's focus on the practice of holding high-quality stocks, Lynch choice of profession and the company's experience (second half of 2005 to 2006 in the first half I chose one of the reasons Suning Appliance is to study the experience of Lynch on the retail stock picking), Crow's Murphy tracking trends in laws and Kawohl strategies. Ou Naier investment approach, whether bull or bear markets, are likely to be profitable. The success of Warren Buffett told me that a very fine texture should choose a long-term stocks, it should not be diversified investment. Of course, Ou Naier on the fundamental analysis of the vision is still not very wide, so there is no Ou Naier achievement Buffett large (this will be explored in future articles). Buffett was too late because of the huge amount of money, unable to implement the strategy-band operation.

I have accepted the profit model of the test of practice, since the second half of 2004 since the actual results can be contented. And I think it is sustainable, that is, whether bull or bear market, are likely to profit, but profit levels may be different.