Category: Money tips Release Date: 2007-07-13
Many investors might think investment techniques to achieve the highest state of some good ideas on what style all their own. May be a matter of fact, the investment skills of the highest level, this is --- there is no skill. Some investors may be surprised: There is no skill, how can a profit in the stock market do?
In fact, many rich in the stock market to become the person does not depend on short-tips profit, but through the right investment philosophy stable income. Example, through stock investments Buffett to become the world's richest, he was not too fancy stocks skills. Many investors Buffett's investment methods are not recognized that the death of Buffett's approach is to cover their share, however, not called "speculation" shares, because he neither chase will not sell into, not to look at the frequent changes in short-term operation disk.
May be precisely the problem out of here. Warren Buffett became the richest dead cover their shares, while the stock market, many investors have learned about "18 to be versatile," Every day around the clock operations, buying and selling is too busy, but it does not become a generation of rich, even until losses. This is already indicated, the investment skills of the highest skill that is not deep skills, that is, to move beyond the general skills, with the right investment philosophy to obtain long-term stable economic value.
Simple is best
Than half a century ago, British mathematician Bertrand Russell was once known to his students out of over one question: 1 10 1 =? Title written on the blackboard, the brilliant student who looked at each other, but no one answered. A man and a woman can give birth to a group of children, the combined strengths of the business community will get a multiple of the development of geometry --- encounter this kind of situation, one plus one is equal to a few that do? View of this, even such a simple question can have many different answers.
Russell was given the answer to many kindergarten children the same: the equal sign not hesitate to write a "2." He said: "one plus one equals two, this is the truth. The face of truth, how can we hesitate and think twice before it?"
"1 +1 = 2" is a simple truth, should in no way equal to anything else. Nor should we in the face at a loss when such a simple question.
Stock market investors often complicate a simple question, in fact, simple is best.
Wizards Buffett stock rate of return each year, only 22.2%, but persevered for several decades, it became the world's wealthy. Warren Buffett famously said: "The most profitable unit by the most simple."
Practice makes perfect
To use their most familiar theory, they are most familiar with the market environment they are most familiar with stock investing, this is the easiest way to profit. Pairs of those "trick", "trick" or are "mist flowers" category of the so-called stunt, trick, you better not touch.
Like stocks and each stock has its own character. Investors in the long-term speculation of a stock, they tend to be very aware of their shares of. Even if the stock quality of the general, performance was flat, familiar with the stock shares of investors from the volatility of its limited range to get the difference. However, if a stock looks very hip and 1:00, investors rush to buy shares after the stock because they do not familiar with the nature of, in its adjustment can not cover their short positions, in its rush to sell when a slight rise, even if it is a dark horse, investors is difficult to derive a higher profit.
Stumble with a stone not to be twice
In the stock market, do not be afraid of being a rock trip, but definitely will not be the same trip twice a rock. Most investors tend to be the same piece of stone stumble many times, these investors intelligence capability is no doubt, but if it fails too many times, you need to change the original self-examination and change habits.
Lessons learned can discover their own weaknesses, but also for themselves in the stock market found the right place at the right time to facilitate their selection of suitable method of implementation of an appropriate investment strategy.
Among the investors in the success of failure of good at summing up lessons, be able to stop and read and understand China's stock market to avoid repeat it. Thus, successful investors will not be a stone trip twice.
