Category: Money Tips Date: 2007-05-07
In mid-June, a four-year stock index appeared the biggest drop since the day down nearly 90 points, Hu Zhi, many investors are still happily talking about the day before the amount of money can be separated by just one day of being stuck on the start calculating how much money . Some investors stop in a hurry, and some investors anxiously waiting for the market can rise, we could have sold capital preservation, but the broader market fell deeper attributes actually enjoy. I was just sitting quietly watching cartoons, and ready to choose the right Entering.
In fact, I kind of mentality is well prepared for. Because I think the stock market keeps changing, nothing is absolutely sure, but we can point to the probability of market opportunities, that is, when the profit is far greater than the probability of a loss when the probability is necessary to decisively intervene. Of course, the probability of size is not imagined, but usually need to do statistical and analytical work. I passed Statistics found that: most of the history of the stock market turned out to be important to the bottom of the slump in the stock produced. For example: in 1994 at the end of 324 points in history, is the Shanghai index less than 8 months time point by 1044 plummeted to 325 points, or nearly 70% of the birth; the end of 1996 stock crash in the four trading days 350 points, but the decline stopped and stabilized after the bull market surged more than 70%; 1997 ~ 1999 ~ 1100-point index in 1000 and built a successful five times between the bottom of all generated in the stock crash, in which the last time fall in the birth to a "5.19" big bull market; October 2001 stock index in almost vertical dive into 1514 points, the only good news appears to stimulate the next intermediate rally; in 2002 in the first half of the stock market was also born in the broader market rapidly diving of, and the prices have been launched before the stock 13 trading days in 400-point plunge. 2003 "1.14" Quotes is a rapid drop in the stock breakdown of the pre-historic low of 1339 points, to reach 1311 points, after the outbreak out. November 2003 bear market before the end point is also due to sharp fall in recent years, reaching a new point at the end of 1307, after 5 months will come into broader market rally Quotes. These circumstances indicate that collapse is not terrible, and sometimes crash is not only not a disaster, but as an opportunity.
Today, I talk about their own investment ideas and just want to tell shareholders: In fact, the surface is not terrible terrible things; we need to make the surface of the market to understand its true face. For example: When the stock market decline that, investors generally will not be scared of the stock market slowly Yindie, but ignored the crash Quotes am more afraid, because Yindie a small decline in per day, while the crash Shique make your own financial cards and Japanese K-line the same as pulling their "big yin." But in practice, and psychological sense of complete contrast, Yindie more horrible than the fall, the damage to investors is also deeper.
In the foreseeable future Yindie adjustments, always progressive destruction of investor confidence, patience and wealth. Long, continuous Yindie trend, making investors as if being warm boiled frog general, unknowingly bogged down, and so able to extricate themselves when alert. The short fall is the concentration of the release of energy can be reduced to some extent the adjustment period, and the slump is likely caused by a high degree of investor concerns and take appropriate measures to avoid the risk of losses and thus reduced to a lesser extent.
Comparison with the Yindie from the crash can be seen, our eyes see and ears to hear often the appearance of the market more often than not true, but the objective statistical data is not to deceive us. Stocks when we can not rely entirely on their own subjective judgments, and sometimes might as well let statistics do the talking, it will reveal that beneath the surface in the market to cover up the real side.
