Category: Money tips Release Date: 2006-07-20
Confidence to wait for Quotes
Q: Listen to your great confidence in each transaction?
Answer: Yes, otherwise I would not engage in trading. Investment law is one of disengagement, unless the really great things happen. Most of the investor likes to wander in and out, looking for something to do. They might say: "Look how clever I am, but also earned a three-fold." And then they will take the money earned to do something else. They are no way to sit down and wait for the natural development trend.
Q: Do you always wait for a natural trend of development to benefit? Do you have never thought: "I think the market will probably have to rise, and may wish to go try their luck."
A: You mentioned to try hand test, in fact, lead to your ruin road to ruin. I always rely on waiting for the end you will find money in the feet. Losses in the stock market have been a number of people will say: "lose a sum, I must try to earn it back." The more experience of this situation, the more you should calm down and wait until the new state of the market place to take action.
Q: You are based on the fundamentals involved in deal?
Answer: Yes, occasionally I will also look at analysis of the chart. Sometimes, analysis of the chart will tell you that the market has emerged great a deviation, in this case, I usually will consider whether to continue to do more, or shorting.
Q: Can you give an example help?
A: Yes. Two years ago, I was soybean prices rose to 9.60 U.S. dollars when the short selling of soybeans, as reasons, I now still remember that very clearly, because in my short the night before, I had dinner with a group of traders, including a Bit dear friend had been talking about his reasons for buying soybeans. However, I was top of his sentence: "speak truth, I really do not know that your view is of the soybean bull made a mistake, but I was too crazy because the market trend and short."
Transaction based on the facts
Q: This reminds me of a typical example. At the end of 1979 to early 1980, gold was sharply up, you were shorting it be?
Answer: Yes, I have about 675 U.S. dollars an ounce gold price when the short sale.
Q: The price level from the highest point short of 200 U.S. dollars ah?
A: I already told you, I am not a clever traders. I took time for action is always too early, but this time from the price of gold rose to the highest point of shorting, it is merely a difference of four days for time.
Q: When you engage in such transactions, did have two views do not mind?
A: Yes, ah! To this gold trading, when gold rose to 676 U.S. dollars, I would feel a bit sorry, and
Q: But you do not change your decision.
Answer: Yes. Because at that time the gold market situation is quite chaotic, but never gold's gains will be maintained for too long, can only be said to be dying in the struggle which has been doing.
Q: It seems that as long as the perceived market performance very crazy, you will immediately respond?
A: It's crazy phenomenon warned me to further observe the market does not mean that I must have action. Take for example the gold market in early 1980, I predict gold will enter a bear market. At that time, Volcker was appointed Federal Reserve chairman did not take long. He was for saying that they would beat inflation, but I also believe he is sincere. In addition, I was also bearish on oil, and I knew that if oil prices fall, gold will be down with it.
Q: This is because you think that oil prices and gold prices will be synchronized up or down, or because the market is the public at large think so?
A: At that time, we are all think so.
Q: Do you believe the price of gold and oil prices really have to synchronize with it?
A: I think not.
Q: The reason I raise this question because I always thought that gold and crude oil synchronous relationship between the two is just a coincidence.
Answer: true. Sometimes, There will be gold and crude oil short-term synchronization relationship.
Q: Does this mean that you would think that the market because the market there is a certain mass relations in the presence of a transaction, even if you know that such a relationship does not exist.
