Category: Money tips Release Date: 2006-09-14
Very often, and the prices rise to be known as the "value discovery", or "value reflects" grounds. More often than not, investors large and small, regardless of professional or amateur, to enter the market at all times known as a "value investment" motive. However, in the market after the actual operation, the vast majority of investors have become full of speculators. Incentives to invest in stock market value to price investments in actual operation, the final outcome was in all likelihood "not a speculative loss to rice." This is revealed on the other hand, easy to invest in the stock market speculation difficult to talk about for investment easier said than done.
In the stock market, it is necessary for real long-term investment and success, we should need the following qualities and the basic quality of investment:
1: Make sure you buy the "bull", not "sheep", not "bear." This requires starting from the fundamentals alone on the Quotes of "plug-in words" is never seen an equity investment in the coming years, the value of 3,5.
2: have read and understand the industry, companies professional data, and can be analyzed and tracked capabilities. It is because you are long-term investments, the investment cycle is a year of time units.
3: the need to have tolerance Quotes, 30% or even 50% of reasonable fluctuations in endurance, as well as in the process of the market psychology of noise immunity. Because "tired cattle need water, but Male has also stopping for a rest," and then there is investment value of the stock can only rise not fall, and sometimes systemic effects by the market, or there is a larger stage or later, also need to a reasonable rest and adjustment. In the broad market downturn phase, this adjustment is sometimes 30%, and sometimes even up to 50%.
4: If you want to make their own investment Changsheng undefeated, and both enjoy a long-term investment value of stock returns, but also access to the excess use of market fluctuations in earnings, it would need to have 3,5 years in the position for half the cost of the capacity. Many investors do not understand why the fund did not move the stock holdings a few years, in the general trend of decline Quotes, in their positions after the stock fell, the Fund's net can remain robust, even contrarian growth? The main reason is that the Fund exercise their professional advantage, by having a high volatility in a timely manner to reduce the growing cost of constantly reducing positions. In that way, even if the Quotes on a stage is not up, in fact they are under the premise of maintaining long-term positions also get to the fluctuations in earnings Quotes
