Category: Money Tips Date: 2006-04-15
Many investors buy stocks is very casual. As long as stock analysts who recommend, or conducive to good talk on the quasi-someone who has bought. For these friends, to buy stocks than to buy food is also free, grocery shopping but also pick 3 pick 4 it. One can imagine the result of random, mostly after being stuck buying, and then hold to go home to sleep, waiting for some sort of relief.
If you buy stock to acquire a number of effective principles and strictly followed and implemented, can greatly reduce errors and increase profit opportunities. Here are a few principles of effective bid.
1. Trend principles
In preparing to buy the stock before the market's operation must first have a clear tendency to judge. In general, the vast majority of stocks are running with the broader market trend. Tape on an upward trend in profits to buy shares more easily, and in the top of the buying is like Hukoubaya, down trend is unlikely to buy the survivors, plate bureaux buying opportunities are few. But also according to their own financial strength to develop investment strategy is to prepare medium to long term investment or short-term speculation, and to clarify the operation of their own behavior, a definite purpose. Selected stocks should also be a strong upward trend in stock.
2. Batch Principles
In the absence of full grasp of the situation, the investor can buy in batches and decentralized approach to buy, so can greatly reduce the risk of buying. But scattered species do not buy the stock too much, generally in less than five suitable. In addition, buying in batches according to their investment strategy and funding in a planned manner.
3. The bottom of the principle of
Medium and long term best time to buy stocks should be at the bottom of the stock has just crossed the region or at the bottom of the initial rise, it should be said that it was time to minimize risk. While every day operation of the short-term opportunities, we should try to take into account the short-term bottom and short-term trends, and to Kuaijinkuaichu the same time, not too big amount of money invested.
4. Risk Principles
The stock market is high-risk high-yield investment locations. Can be said that the risk of the stock market everywhere, ever-present, but also there is no way to completely avoid. As an investor, should always have the risk awareness, and as much as possible to minimize the risk, while buying stock in opportunities is the first step in controlling risk is an important step. Buying the stock, in addition to considering the broader market trends, analysis should focus on stocks to be bought up a large space or down a large space, and when on resistance and support level under the stall where to buy the grounds that what? If we do not buy up after going down how to do? And so on, these factors should buy stocks when there is a clear understanding of risk can be reduced as much as possible.
5. Strong principle of
That "the strong Hengqiang the weak constant weak", which is an important market, stock investment laws. This pattern will buy stocks when we have some guidance. In line with this principle, we should be more involved in a strong market, with less or do not enter the market weakness, in the same plate or the same price or has options to buy the stock between the strong should be buying stocks and led the unit, rather than weak stocks or that the compensatory growth and low stock price.
6. Principle subject
To the stock market, especially in a relatively short time to get more benefits, attention to the market speculation themes and subject matter of the conversion is very important. While the endless variety of subjects, conversion faster, but still has a relatively stable and a certain degree of regularity, as long as it is properly harnessed there will be handsomely rewarded. We buy stocks when the stocks in selected subjects between the stock should be bought there is no subject matter to give up the stock, and to distinguish is the main subject or a short-term themes. In addition, some subjects are often fried fresh, while some themes are solo, fried once finished, the speculation time is short, the future has little appeal.
7. Stop the principle of
Investors buying the stock, is that the stock will rise before buying. However, if the purchase is not as expected after the rise but a fall in the how to do? If only shareholders to wait for some sort of relief is fairly passive, not only missed the take up of funds other profit opportunities, more importantly, the burden of post-lock-back will affect future operating state of mind, but I do not know when to be some sort of relief. Instead of passively hold-up, it is better take the initiative to stop, temporarily lose out to identify wait and see. For the short-term operation is more so, the stop-loss can be described as a magic weapon for short-term operation. Stock Investment The best way to avoid the risk of stop, stop, then stop, no other way. Therefore, we should be set up to buy shares when a good bit and the implementation of stop-loss. Short-term operation of the stop bit can be located at about 5%, in the long-term investment, stop bits can be located at about 10%. Only learned of the investors is the flesh and stop sophisticated investors, but also the stock market will become truly lean companies.
