Important stocks concept to stay strong and weak abandoned the principle of financial management ti

Category: Money tips Release Date: 2007-07-28

Everyone is yearning for bull market, but for many ordinary investors, in the bull market of the outcome is not so perfect. There have been statistics, in 1999 opened 1166 years Quotes tape points, bottom 1047 points, Mogao 1756 points, the annual closing in 1366, after four of them a passion for the bull market, the annual increase of 17%. But it is surprise, when the year-end inventory, 83% of the average investor is a loss, and able to achieve an annual profit of only 17%. In the bull market throughout the year in 2000, investors made profits last year the proportion is 54%, but 28% proportion of investors purchase shares of specialized households to achieve by doing profitable, which means that only 26% of the investors is through the secondary market to achieve an annual profit. This phenomenon has also started to emerge in the near future, has said that some investors in the first 5 months to obtain huge profit gains of comparison, has in the last less than 2 months time, "returned to the market".

Why is this so? In addition to chase sell into improper stock-picking, market timing was not right, do not know how timely rest, listen to rumors ... ... and many other reasons, among them one of the most important reason is that many investors had made a "sacrifice to stay strong weak" an error of principle.

Let us look at the path of a loss of many investors: any investor short positions are initially began to start buying stocks, and gradually bought several of them naturally go up and down, up shares it, to throw, and because the "profit-taking." The stock does fall to continue to retain, because "and so some sort of relief." Rises to the thrown, the availability of funds, and Zaiqu gradually buy stocks, the throwing up, and continued to fall and so some sort of relief ... ... such a cycle, only one result: the whole quilt store! The Quotes are up there must be fall, so operation to form a number of loss-making investors a normal state: Quote positions or when the quilt, and the prices up when waiting for some sort of relief.

This gives us the inspiration operational meaning: "stay strong abandoning the weak" is the operation can not be a major breach of the principle on which strong? What are they weak? Or how to "stay strong abandoning the weak" is just a technical problem, rather than principles. The technique is flexible to use, while the operating principle can not be violated.