Category: Money tips Release Date: 2007-01-17
Investors will often share their own hands compared to "tasteless" --- tasteless but wasteful to discard. Sometimes, even if they discover a "dark horse", but due to funding the full stuck with a "chicken ribs" shares, the can only watch the "horses" sigh.
In fact, this is the rigid mentality of investment performance. Convertible is actually holding the same stock market value of the case, just change the stock code, but investors are therefore substantially increased the opportunities for profit and get out of trouble. A successful swap will increase by less than 1% of the tax cost, while the strong stock gains are far greater than the weak stocks, thereby increasing the benefits are also enormous. In particular, stuck with a long-term investors in stocks Zhang Sheng hopeless, more needs to swap to change the fate of their investments.
So how should investors be in the hands of the "chicken ribs" into the "meat and potatoes" mean? In particular, following a number of investment techniques.
One is judged that the general trend
Swap must be accurately judged the direction of the overall market trend, as well as hot spots and the polarization rotation, so that targeted and can not indiscriminately at random chase sell into. Recognize the trend and confirm the stock is only running on a smooth upward trend with the intention of selling the stock will have a clear downward trend, and intends to buy in the stock price not far from the bottom of the region when it is appropriate to use the swap strategy. In the broad market is in decline when the channel should be taken to other mode of operation, must not rush to swap stocks and stock indexes to confirm the need to wait until after stabilizing convertible considered.
Second, the selection of individual stocks. Convertible require accurate stock picking, investors need to pay close attention to the mainstream of hot plate and select individual stocks. To stay strong when you need to swap for the weak, that is, based on market characteristics and the performance of individual stocks and selling the hands of individual stocks held by non-mainstream hot, buying belong to the current strength of the mainstream hot stocks; sell weak stocks held by the hands of every obviously low incremental funding to buy pre-intervention, the recent strength in the broader market finishing strong resilience during the Su Liang shares can be achieved faster than the general trend of earnings.
Third, the amount can be observed. When investors intend to buy in selected stocks, we should pay close attention to changes in stock trading volume, when the individual stocks over larger volume, stock prices rose too fast kinetic energy consumed, or assigned to one of the main lucrative, the stocks are often easy its peak, when the appropriate convertible; as stocks volume is too small, and some even just dozens or hundreds of transactions a day in hand, some of the larger funds and investors can not rush to swap, because when the market simply not enough in selling convertible operation for its implementation.
Fourth, be patient. When investors have sold shares soon after the fall, not necessarily immediately bought a pre-selected stocks, as is often the best time to sell the stock to buy another individual stocks may not be the best time. In the conditions are not ripe, investors can wait patiently until the stocks you want to buy into the comfort zone and then bought a timely manner and ultimately complete the swap of the entire process.
In addition, the implementation of the convertible should adhere to the following principles:
Adhere to a one-time swap. The most effective of the convertible is a success, and repeated the operation of the convertible is very wrong behavior, because the existence of stock picking, which indicates that investors thought disorder, combat issues such as reckless operation, it is likely to cause errors. But on many occasions convertible will increase transaction taxes, raise the cost position and reduce the future profit margins.
"Up-channel stocks" does not change. Some slow Niugu while running on an upward trend channel, but the fares of speed is very slow, small daily fluctuation in volume is also smaller, so that investors gradually lost hold of the patient, to replace the other up speed stocks faster. In fact, usually end up fast stocks and is also fast, but slow Niugu up slowly though, but lasted longer Quotes, revenue stability, and a huge profit. Therefore, it should not change when you swap out the stock into the rising trend channel.
Can not sell surplus Bukui. The hands of investors will often sell profitable stocks, using money from the weak trend to smoothing the quilt of those shares. This is a convertible in common investment errors. In fact, investors can quickly make a profit are often in the future Quotes of the mainstream variety, these stocks will remain strong Hengqiang strong trend; while in the performance index up in stagflation is often the number of non-mainstream varieties, these vulnerable Shares will be the weak weaker. Sell profitable shares, smoothing quilt shares are actually sold the mainstream varieties, buying non-mainstream varieties, the portfolio will tend to deteriorate, affect the return on investment.
