Category: Money tips Release Date: 2006-06-04
In the securities market where most investors have experienced the pain of early exit, in the weak in the mind or the panic rush out after they found out the decision errors, but most could only stand and watch as the original stock one Awkwardness Flying sky, looking at the possible profits evaporated.
There are many reasons for this situation: either there is next to the greedy heart, or suspicious movements on stock prices. If the former, nature is nothing wrong convertible, if it is the latter, in turn, should make their own operating system of some review.
We entered the market based on nothing less than the fundamentals or technical factors, if these two factors has not changed, it should not constitute grounds for a half-way out. According to the author observed that an important reason for early exit of investors like to speculate on share price run path, the path's concern over the target's attention.
Price target is that we face based on fundamentals or technical factors on its expected location; price path, it is the Unit's movement pattern. As the stock price in motion the process is affected by many factors, the market's short-term performance, issued policies, and financial side factors such as short-term performance will be on the market impact will cause the stock price movement pattern with a certain degree of unpredictable sex. It can be said for the middle in terms of investment, forecasting price movement path is one of the most desirable approach.
At this point, affecting the path of several major factors to explain briefly. First, individual stocks and the market's movement is emerged in convergence, but due to fundamental factors, but also makes the existence of convergence at the same time difference. Convergence is often manifested in individual stocks and indices simultaneously ups and downs, the difference is manifested in Change of the magnitude of inconsistency. From this perspective, the index movement (mainly referring to the short-term movement) of the factors that may be concerned about, but it is more of a movement to change the rhythm of individual stocks, rather than moving targets;, followed by policy considerations. And long-term perspective on market movements, mainly to comply with its own inherent laws, policies, news surfaces generally only way to change the market's short-term movements. This pushed the then policy of the face of the impact of stock prices can also be reflected in the path; three of funds side factors. The performance of stock funds and they naturally inside the left and right, capital adequacy, capital of the joint efforts are the same and so on, also make a different motion path. In addition, funds approach the relationship between timing and the broader market also make the movement path of stock prices differ.
The different paths, we produce the results we have seen individual stocks or plate of wheel movement, in some cases the stock will reach the target bit early, but some stocks will be slow and even a film shoot a few of its increased manner (path) is also very different, but as long as conditions are ripe, l is inevitable. Compared with the target, the path with a very unpredictable nature.
If investors according to careful analysis, stock price target bit rough judgments, while reducing the concern of the path, I believe that the difficulty of profits will decline. Of course, this is also a need to reduce the pursuit of short-term profits to curb our ever-expanding desires.
