Data:2009-12-12 2:34
Category: Money tips Release Date: 2005-12-30
With regard to the management positions, the four classical investment theory has no clear narrative. We say that the price is a random movement or random and orderly movement, for the management of funds is entirely different. If the price movement is completely random, in order to double investment earnings can be used, each of betting after the failure of the next bet is to double the money put into the last bet, as long as one can get to win a profit. Of course, premised on the assumption the case of infinite capital. But the current market price, although a high degree of random fluctuation, but there are signs of man-made. How can a good combination of capital and Quotes is the key to our profits, and compound interest, profit results are very impressive.
How to establish position, the traditional method is generally the size of investors, subject to funding, can the risk preferences of the Quotes of the establishment of positions, with a strong subjectivity.
The best allocation of funds is a whole warehouse goes up when the operation, having a fall without transactions, not the use of funds. But this is almost can not do, because no one can accurately predict how the future of the stock market.
How to fund and Quotes to fit it? We said earlier theory, the core idea of the plot. Opposite direction of movement of countless particles (long-short funds) to hedge the formation of the plot points, for the transaction of any studies, we can put a hedge in the particle to go. Particle movement in different directions of thousands of rules. We will breakdown of funds for thousands of parts, when the price movement of a movement in line with the rules, we gave a funding match of this rule, and numerous opposite direction of the movement rules hedge accumulate and eventually be able to position the size of the synthesized . When the time goes up, up the rules in line with the more matching funds will increase, thus raising the degree Quotes and financial fit. The allocation of capital is no longer a subjective creation, but through numerous mathematical model results.
