Category: Money tips Release Date: 2006-03-05
When we were young have learned "Mangrenmoxiang" This fable story, different in different parts of an elephant blind touched on different things like that elephant, it was like a rope, and there was like radishes, like dustpan, like columns. Blind people do not know what an elephant really looks like because they only touch the elephants as part of the understanding of all of that.
Investment in the accident were the norm
As for investment, we have to some extent are "blind." We can understand that the information is only one part, and we are always faced with inadequate information, is always an unknown future. More of the stock price reaction to the future investment in the accident were the norm and not by accident.
Investors who do so often a mistake that would be over confident, just touching the elephant's leg is that he knows the elephants look like. Many people often mention a word is "engaged in this industry, I understand, this business I know very well." However, often the case that industry experts and executives of listed companies themselves are not so confident. Such over-assertive behavior in people panic, frenzy, when the performance was even worse, the consequences of excessive self-confidence is often focused on investment rather than to spread risk by diversifying their investment, and over-frequent trading.
Professional investors often commit another error is "command and head butt", that is, information filtering. Many people are optimistic about a stock, they often only see a positive message in support of its judgments, while the negative message had been unconscious most of the filtered out, especially in the buying, the more prone to such thinking on the errors.
Most people will have the knowledge hallucinations, a lot of information in fact is of no use to judge, but many people learn more information becomes available to determine their own tend to be more confident. In this age of information, knowledge, illusion of great influence to make the right judgments.
Gamblers tend to like to roll their own dice, this is a illusion of control, in fact, regardless of who is going to shake, probability is the same that he could not shake shake is also beneficial to the results of their own. Zuo Gupiao is the same, many people see every day staring at the screen, in fact, a kind of illusion of control.
Investment and beauty quiz
Some people say that beauty, like stock investment guessing game, guess the winner can get rewards, so we must not only determine which players the most beautiful, but also to judge how other people look at. Investments to more than one eye to see the market game, investors should be concerned with changes in structure and behavior, concerns the conduct of listed companies, as well as government action.
The price of the stock, after all, will reflect its value, but during the process is complex. Thus derived from a number of different investment philosophy, are concerned about the short-term trends, there are only concerned with the long-term trends. Different investment masters have their own different investment methods. As an ordinary person, we should be concerned about what investment approach is to learn, can be replicated.
Since the investment in the face of a non-adequate information, unknown future, but also taking into account different between the main game, which requires us to do our work in two areas: First, portfolio management, namely, the risks and benefits of doing direct trade-off; second study, by studying a combination thereof.
