Category: Money tips Release Date: 2006-12-09
Investing in stocks, investors encounter when stock prices fell, often choose to temporary continuation of the strategy positions, waiting for pick-up in stock prices are so-called "留得青山?quot; psychologically still have to come back expectations. Sometimes, even for investors to cover short positions, that is, the more shares will be bought or more to try to lower the average purchase price, as long as the stock can rally to get out as soon as possible.
When stuck, investors just passively wait for buying back stock levels, during which investors almost refused to accept the depressed stock prices may be an objective analysis, if the share price, the purchase price back on luck, or even close to buying income level, investors will be eager to sell the cash. If investors buy when it first set stop-loss level, then it is not hard to wait, during which the sum has been "frozen" funds are more likely to have better investment opportunities.
As for the margin call, in fact, only a psychological comfort of the act, unless the investor a very long-term investments, such as 5 years, 10 years as the goal, you can follow the example of the Fund's investments in the "average cost method" to the sale. But the problem is that investors do not have the capability, or does not have sufficient funds.
In a real environment, when the stock price had just begun to fall, investors may also be in order to cover their short positions as the target; but when the stock price continued to fall, investors start to feel disheartened in addition to outside (or city when the investment sentiment will no doubt lower), will find the funds on hand began to tight or even wonder whether they should be re-injection on a single charge only the upper stake.
Investors eventually though the average purchase price is a little down, but the exposure to market risk (the total investment capital) is greatly enhanced. Even if investors do not carry out the initial stop, but if you can calmly wait for pick-up in stock again before it has a chance to cover positions, rather than lower the more bought, then it would be more sensible about that.
Note that above-mentioned limited to stock investors, if the warrants for the investments, just the right time, the more important. Because there is a period of warrants investment instruments, investors, etc. There is basically no longer the prerogative of warrants closer expiration date, time, the faster the wear and tear. If the shares are not to the expected trend occurs, investors will have to pay the expected time or stop-loss price in the region in a timely manner.
