Category: Money Tips Date: 2006-07-06
As the stock market can not spread the risk of both the risks, but also can spread the risk, so investors should not put all the money invested in a stock or stocks of a plate, but should choose a variety of low level of risk-related species composition of the securities portfolio. According to the portfolio the proportion of high-risk stocks, we can be divided into aggressive investor type, aggressive type and sound type.
Aggressive investors in stock selection of strokes: if the investment portfolio of a larger proportion of high-risk securities, indicating investors posture radical type. Aggressive investors objectives as far as possible in the shortest possible time to maximize the value of the portfolio. Therefore, their investment was mainly targeted at a significant reduction in the stock shocks. In selecting the radical-type stocks, investors usually have to use technical analysis method, a careful analysis of the market long-short contrast between the two sides, a balanced state, and so on, and less attention to the fundamentals of factors, and as a basis to make forecasts, Selected by the rise of the stock room. In general, the radical-based stock options are several criteria can be used as reference: one on past performance the best two there is a market more active involvement of three main themes there are speculations the relationship between volume and price with the four with a good five technical specifications issued by the more obvious signals. Aggressive investment has the advantage of great importance to the use of technical analysis, often in the short term to achieve greater benefits and shortcomings are overlooked basic analysis, which is not a comprehensive analysis method, therefore, the results usually do not predict a high risk coefficient larger.
Robust stock selection of strokes investors: If the portfolio risk-free or low-risk a larger proportion, then the investment stance is prudent investor type. Steady investors have stressed the issue of stability and regularity of income, therefore, often choose a higher credit rating of bonds and stocks with high dividend and safe. Therefore, stock picking should be kept secure as the primary indicator for reference. Specifically to note the following aspects: a company's profitability, a more stable two stock dividend of three high level of low price-earnings ratio of equity four large, the market is generally not the main patronage. In order to take into account the maximization of current income, a strong investor can be stocks, funds and bonds, together, together constitute the portfolio. In addition, the securities investment funds managed by experts as a financial instrument, may well be a better investment.
Aggressive investors stock selection of strokes: the radical intervention into the model is between the type and stability of an investment-type mentality, popular speaking, is to risk under the premise of the smallest possible, so to maximize profits. Of course, their risk factors than solid-type investors, but lower than the aggressive investor. Aggressive investors in choosing stocks, the basic analysis method can be used, in-depth understanding of the operating characteristics of the company's products, demand conditions, competitive position and management level, etc., and thus on the companies to make profits and dividends forecast and thus the intrinsic value of the various stock market price comparison, select the stock price is undervalued. May refer to the following analysis: a profit and dividend growth potential dividend of two low level of 3 is expected to yield higher earnings growth higher 4. Aggressive investment in the biggest advantages is its fundamental analysis, investors basic information and the state through policy analysis, often able to predict market conditions change. If investors predict how the economy to recover from the crisis, they should increase the high-risk securities in the portfolio share that is converted into aggressive investor, if investors predict how the economy will boom into a recession, it should improve the low-risk the securities in the portfolio share of which translates into a solid investor.
