It s hard to stop is a good knife Money Tips

Category: Money tips Release Date: 2006-06-24

In many writings will stop placed in a very important position, I do not object. But I must stress that the stop-loss is a very pernicious to health of the knife! You want, the world, few if Guan Gong, Eviscerate scoop out the meat and talk and laugh freely from?

Almost all of the people who first entered the stock market does not know what stop-loss, and they tend to buy stocks after the firm to hold, hoping good luck all the way along. Till the setbacks, and had met with others pointing Fang Cai know in the world there is a technique called stop-loss had that ugly point is called "flesh", is really another bitterness and frustration, but to understand this point also insisted a year or so later. But the really know in a timely manner but often stop the beginning of a disaster. Stop this knife to Eviscerate the efficacy of the subsequent three or four years the show was out most vividly. Because of the knife, so buy today sell tomorrow, high-catch, low-kill, occasionally slaughter was also quickly stop in a time of lost. Knife knife, followed by dolphin gradual Xuerouhengfei bleak heart. So smart to leave the stock market as early as possible, unyielding grit one's teeth still persist. The grit one's teeth finally adhere to a small part of the immortals and refined (not immortality, and into the fine has been bad), there are many finally will be invested into the evolution of gambling, what is gambling gambling --- 10 9 lose, there are One is that luck also!

In fact, the largest frequent stop-loss has several disadvantages: 1. Habit formation of short-term out of habit, regardless of the situation in use. 2. Neglect of the overall situation, without distinction of CBBC. 3. Shot of the knife before the count on a stop-loss protection and the lack of the necessary advance consideration, perhaps a lot of the sale of just one minute origins of likes and dislikes. I think I said the above points as long as the individual bone-heap heart Gunpa's brother must be shared.

However, when the money snowball You manage to find more and more people discovered that prior to be properly used to how the knife did not go smoothly in the beginning? The answer is the changes in the heart so that you can no longer keep it to the increasingly heavy lifting Eviscerate knife. When the former knife cut only a few hundred yuan a drizzle, and now have to face the knife going missing, when tens of thousands or even millions of them at last a real pause. Although the ratio is still that percentage, especially if you want a smooth cut can not cut up the time.

While many people sing the first to stop an investment decision, we are in the food for thought: Is the strategy of ideas important thing is discipline important? Always has one thing after another, who will be unexpected error occurred, but how few errors as possible, that is used as little as possible stop the knife? Of course, it acted at the critical moment, hesitation can not solve the problem!

To solve this problem, I think the result is:

1. First to have a correct understanding of the situation, before making a conclusion must be repeated for the phenomenon of thinking to make a few objective basis. What is the objective, that is to be experienced by all parties to live cross-examination in order to ensure correct orientation.

2. Of the situation to determine the allocation of funds to develop the details of the bear market myself as an example to develop 28 principles, the principle of balance is one of the Urban 37. The so-called 28 that once the situation to determine the overall operation of the bear market funds are available only occupy 20% of the total capital shall not be crossed. At first, when she's not used very often to Xian Baqian classified as banks can control, then even if the money in the accounts can also be voluntary compliance. This is what I a friend from doing business over there, learning, and an enterprise must have to develop a good sound system, in the face of this system must be respected by everybody. For example, as well as the Board of Trustees to vote on approval of the financial system. A good system is prerequisite for stable development. I have developed guidelines aimed at resolving the unpredictability of the speculative risk, because we all know, is not made at the end of the bear market, most of the stock trend is downward, we are not prophets, can not guarantee that his stock down in most cases, judicious , but once an error may be wiped out, it must be a system, to restrain themselves, to prevent the fault of their own.

3. A single equity investment shall not exceed 30% of the total capital, under normal circumstances not exceed 15%. Getting carried away because of a series of victories, culminating in the failure of shortage of examples.

4. If the situation and determine improved operational stocks so heavily at this time to pay attention to is this: before the attack must be considered over and over again! For the stock to be involved in-depth understanding of the fundamentals to the technical side as much as possible to avoid the use stop-loss. The Shigekura operate only in the bull market started, it is in any case, I observe. I do not have Buffett's genius, nor Solomon Division of sharp, and no Peter. Lynch's wisdom, I am just an ordinary life passing, I can only pick destined wealth. So I wait, I am patient, I'll wait for their own Strike At Heart. The gun may be many years later, but I am no regrets, Who I brilliance inadequate? ! If you're considering has repeatedly declined to 0.1 yuan to stop, perhaps a good time to stop, but in other hand it also reflects your hands-on short notice, lack of comprehensive thinking. Long past, the danger is greater than the opportunity!

5. The situation to determine when the downward trend is unknown, or to reduce or completely stop operation, not to their loss of reason.