Category: Money Tips Date: 2006-04-27
For the stop-loss, two views exist in the market. As the starting point for their investment in different look at problems a different angle, so views are very different. One is that stop loss is to reduce the expansion of the book to avoid the depth of lock-weapon is a ton output capacity of heroic move. Another view was that stop-loss is actually the flesh is to own shares at a relatively low price on the flesh to the makers of folly. These two views represent different view of the stock market, representing different operating styles. Even in the face of the stock quilt, to adopt a contingency strategy also completely different, a kind of stop-loss strategy will be taken, another will take to cover their share strategies.
In fact, these two viewpoints has its own rationality, but also have their own one-sided and can not identify a certain point of view is wrong. As a sophisticated investor must fully grasp these two strategies, according to the different objective conditions, respectively, to adopt a different response mode.
Investors buy stocks quilt, the first question is that one must make a choice between selling or stay, that is, stop and cover their stocks to choose between. Specific criteria for selection are as follows:
1, to distinguish between buying behavior caused by lock-in is a speculative investment, or investment buy. Where according to the fundamentals of listed companies, the value from the investment point of view of investors, stock picking, you can learn from Buffett's investment philosophy, do not care about stock prices rise and fall short of the Change.
2, to distinguish between the sub-buy operation, belonging to shovel at the end of purchase or a chase-type model to buy. If it is chase the type of purchase, once the judge found that mistakes, to act decisively to stop. Without this determination, we can not participate in chase.
3, to distinguish the hype, or belonging to short-term operation in the long-term operation. The short term and the biggest failure is not a moment how much profit or loss, but because of mistakes that put short-term causing midline, and even made long-term. Will not stop those who are not suitable for short-term operation, it will never become a short-term expert.
4, recognize that they are robust investor, or are aggressive investor. Should clearly understand their operational style and good people skills. If investors have enough time to read the tape and disk feelings, you can intraday "T +0" or short-term short to reduce the hold-up costs.
5, to distinguish when you buy the market rose is in a high position, or at a lower position. Broad market indexes higher, especially when profits drive the market higher, investors were elated, stop to consider when rhetoric.
6, to distinguish between broad market and individual stocks of the afternoon down space. More space down the firm stop. Especially with regard to some of the more popular front, or large stocks.
7, to distinguish between the main ship in the Xipan or, if it is the main ship, we must resolutely stop completely. But remember: the main ship may not be at a high level, the main Xipan not necessarily low.
8, according to the severity of their position, if the position too heavy and fitted, and should be appropriate stop-loss as part of the stock. This is not just in order to avoid risks, but also conducive to the stability of mind.
