Category: Money tips Release Date: 2007-05-01
An investment for each of the people know that fear and greed is the enemy of investment, if we can overcome these two shortcomings, good investment, there is a great deal of protection. Both the more difficult to overcome the fear off than greed.
Investment to overcome the fear, the key is to form their own investment philosophy. Investment philosophy, including the following questions, first, what is the nature of investment, that is how markets operate, why the price changes; second theory of value, including how to assess the value and profit and loss causes; Third, what is really a good investment. A set of core philosophy is a fundamental factor in investment success, you must fully understand and firmly believe in and fully faithful to the philosophy of your transactions, or market sentiment can easily be about is getting too greedy, that is too much fear.
In general, the investment philosophy is divided into two categories, one type of investment philosophy and believe the market is always right, and believe this investment philosophy, people do not believe corporate value, or index-based diversified investment or investment, or the use of technical analysis to make the investment . Another type of investment philosophy believe that the market is always wrong, these investors do not believe the efficient market hypothesis basically, they believe the business is valuable, short-term prices are likely to deviate from the value, but the long term, prices will inevitably return to the value. From the statistical results, investment philosophy believes in the second category are more likely to succeed, like Buffett, Lynch, George Soros and other investment guru, are convinced that the market is always wrong, and have gained great success. Buffett once said: "If the markets are always efficient, I will become a holding tin cans in the streets homeless." Investment philosophy and believe in the first category of people does not seem to any success you. Buffett's investment approach and others said the simplest and simply adhering to investment philosophy, based on the invalidity of the use of the market to make money. First use of the market's failure to find undervalued listed companies. Failure is not the true value of the business transfer. Suppose we did not see him being the value of this enterprise, but the people are smart, or will it return to rationality. Secondly, after he saw and bought, bought also insisted that no matter what fluctuations can not be budged, because he believed in his vision, he believed that he was optimistic about the market for sure there were others, optimistic, followed by many more were positive on the share price will slowly return to a high point, so in the end he is a winner.
With the investment philosophy to do to protect, not only in shock when the market can overcome the fear overwhelmed victimizes stocks, the opposite can also use the error to obtain a very good market for investment opportunities. We admired the old masters of the investment, they also should see that they are behind the success of investment activities adhere to its own investment philosophy and investment philosophy. (Send
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