Category: Money tips Release Date: 2006-06-19
Stocks is an old industry. On Wall Street, the train a hundred years ago the popular stocks, steel stocks, and then pop radio unit, TV unit, today's popular computer stocks, Internet stocks. Each stock represents the emergence of new industries and the progress of human civilization. In this ever-changing history of the stock market in Vientiane, the only constant is the stock law of motion. And a hundred years ago or even earlier times of our ancestors, like modern people have the same greed, fear and hope, like the flesh at a loss and refuses to, as satisfied with a small gain but in the stock bull walked out. That year the stock market is full of gossip, today's stock market is full of gossip; I had had a company to do false accounts, and today a company of false accounting.
For centuries, stocks line with their experience of ancestors who wrote one of the family motto - think in this business survival and success must follow the principles. These principles, a hundred years ago apply today for a hundred years after the same may be applied, because human nature will not change.
Wall Street's new generation is replacing the old one, everyone hoped that his presence could leave a history, a variety of maxims and aphorisms, such as countless. I was surprised that Wall Street has been in the past half a century, no new "home training." It was a bit out of the new rules, a careful reading of, but with new words to the old family motto restatement only, a new name.
Section of Wall Street's house training
Wall Street to put all the family motto Duxiechulai length must be at least 200, most of which is "for poetry that worry." Here I will prove in practice the most important rules sorted out. These rules have been proved to be my practice to follow and act effectively and to be able to keep firmly in mind their readers.
Stop, stop, stop!
I do not know how to emphasize the importance of these two characters, and I still do not know how to explain this word, which is the highest stocks line of conduct. If you feel that they really could not afford a lower price than the purchase price to sell their shares, then quickly withdraw from this line of bar! You are in this business there is no chance of survival. The last one cut of meat, the pain once, you will be left to a few dollars more to buy milk for his son.
Risk diversification
The need to do this line gambling, but gamblers can not do. If you are in this line of play to stimulate the hands hands of big injection and dream of getting rich quickly, then you say goodbye sooner or later overturned, but the speed is much faster than you imagine. Do you have ten times good luck, good fortune will not necessarily fall on the eleventh over your head. Remember: You can only take calculated risks, do not put all your eggs in one basket. The hand's capital is divided into five to ten copies, you think there are at least 1:3 risk reward ratio of a stock market at the time of which, bearing in mind the maximum survival of the principle of stop-loss, long-term down, do not make money is immune. Novice mistake is too hasty with making money, hand in hand have to gamble, not wait for tomorrow to become a billionaire. China, "Finance does not enter the emergency door" of the ancient maxim, in this line really can be said that every word ji chu.
Avoid buying too much stock
Ask yourself a few can remember telephone numbers? Ordinary people is 100, you? Too much stock on hand when the result is that concentration, loss of sense of individual stocks. I have always stressed that you must always have the stock movement is a normal feeling, on this basis, it be possible to control the timing of entering appearance. Buy a lot of different categories of stocks, not wait-listed stocks to buy some of each, is a typical novice error because attention will therefore disperse. Focus on the 3-5 most promising stocks, with experience increases, will see the stock gradually increased to 10-15. My own limit is 20 stocks. Readers can try their limits lie? But in any case, do not exceed their limits.
When in doubt, leave!
This is it very easy to understand but very easy to do rules. In many cases, you simply lost their sense of the trend of the stock, you do not know it wants to pull themselves up or is it heading down, you not quite sure it is in a rally or decline. At this point, your best option is to leave! Departure though not stocks, but to touch the stock. If the stock on hand, sell! Do not, do not buy! We have the skills to understand long-standing bet is to win every bet, you must be over 50% probability of winning, as long as you do also have no sense of the shares that you have not yet withdrawn to the bets from the table games. When you do not know the movement of stock, your chance of winning, only 50%. Professional gamblers never bet at this time to stay on the table.
Do not let the "professional gambler," words have frightened you, every businessman in fact all professional gambler. Stocks you learn to become experts in their demands should be higher. Then there another question. Fried Unit's friends would have such a feeling: "When I have a stock, I feel it particularly sensitive, the stock market every day afterwards, so it allows me playing twelve of the spirit, if the hands do not got this stock, I would not be concentrated its attention. "I have the same problem, my approach is to just leave some stocks, such as 100 shares. If the loss, I would it as the money to buy medicine, right when I bought the paste to focus on medicine.
Forget your admission price
Frankly speaking, there is no skill in 2035, handed over a thick pile of tuition fees to make you forget the purchase price can not be done, but you have to understand why to do so. Have in your hands today, the stock, according to your experience, should be up tomorrow. If experience tells you not only the stock movement, and tomorrow it might be down, then you leave it in the hands doing? This is your purchase price at what price What is the relationship? Is difficult to forget the reason why purchase price, which make small and humanity in the hi cheap, never reluctant to eat a little of the nature of the loss. If the stock price has been higher than your purchase price, you sell will be very easy, because you have earned less expensive. If low, then you have to face "lose" choice! Ordinary people will find 100 "reasons" for a while and then lazy. Friend, "another lazy one will" price high. Is very difficult to change their human nature, then try to forget the purchase price bar! So you can focus on the right time to do the right thing.
Do not frequent trading
When I started full-time stocks, do not buy or sell on a daily basis once did not feel the completion of day's work. My stocks for a living, not fried Is not nothing to do? This is my work, but ah! Result was that I paid a huge amount of tuition fees.
As experience accumulates to a certain extent, you will see the stock market is not every day a profit opportunity. What do you think do not buy do not sell, nothing to do, lack of stimulation, the price of admission fee each time out. In addition to fees, the sale would bring you a daily mood fluctuations, break up a cool and observe the market's attention. It can be said that you look to track stocks, 70% chance of winning every day of the trading opportunities is a lie. Frequent transactions are often due to boring boring. Frequent trading is not only loss of fees, while reducing the quality of the transaction.
Do not down smoothing
Made a mistake, not honestly admit to re-start, take a chance psychological, smoothing down, lowering the average purchase price of the hope that they have had some rebound in the stock will be able to recoup their losses, and even make money. This is the thinking and practices of ordinary people, in this line is the shortcut to bankruptcy. Britain's Barings Bank was so full of. Shanghai Petrochemical listed in the United States in 1997, once as high as 45 U.S. dollars per share. From 45 down to 35, low right? Is it plausible that 2000 shares? And then fell to 25 dollars, how do you prepare? Also do not go down the spread? Results Shanghai Petrochemical all the way down to 10 U.S. dollars per share. As stock investors, such a good play as long as the staged one, you were all stuck, and so that it rose back to 45 U.S. dollars? It might be possible, but it is only after two years or twenty years later, what happened is anyone's guess! If you never return? This was hot once, you will no longer have the courage to continue to stocks. Fortunately, if the market give you a chance to get out of trouble, you will immediately realize the money on the meter tank, or touch money, rest assured that every day. Good-bye, and then a paid tuition fees will not graduate school shares were.
Do not down to share can also be used in another way: the first time after admission, there is no profit on paper if not overweight. Paper profit, and that your first entry is correct, you can build on this, proper filling, otherwise your first entry is correct, you can build on this, proper filling, otherwise, leave immediately stop , look for another opportunity. Readers please stop and think about why, the reason is actually very simple.
Maybe some people are not convinced, I have more than ten times smoothing have spread down the right, and it is indeed some sort of relief remedy. I really want to envy you, your luck is better than I do. But you are not telling me that you eleventh, fifteenth results! You can guarantee that they will not be the Wang computer (the computer was Wang's second-largest U.S. computer company, now bankrupt)? Veteran of the stocks concerned, there can be many exceptions. One is the stock rally, any points are a good entry point, happen to you one admission, the stock began to drop to normal in the lower end of the back, you might consider re-entry point unit, even if the purchase price over the first time you lower purchase price does not matter. Ideological basis for doing so is not to some sort of relief, but you "know" the stock rally continues. Only martial arts refining stocks to the "non-measure" ill-stir-fried in hand before they can consider doing so, there is no experience of Mozambique in 2035 to talk about. Novice who would like to remember: Do not smoothing down!
Do not let the profit into a loss of
The meaning of this rule is this: Are you 10 yuan Yi Gu into 1000 shares, the stock rose to 12 yuan now, and on paper, you have 2,000 yuan in profit. This time to be a good stop-loss price, the price should be above 10 yuan, for example, is not 10.5 yuan or 11 yuan, do not let it stop the stock dropped back 9 yuan. If you had shares of speculation, you understand that when the stock rose to 12 yuan from 10 yuan, but it dropped back 9 yuan, the final stop flesh, their sense of how very upset. You will feel foolish! Any time you feel if your stupid, you must have done something wrong! The stop set at 11 yuan, sold also make money when you calculate it, and in 9 Yuan had the feeling of flesh is certainly not the same. It also involves stocks of primary importance: preservation! In any case, try to keep your principal.
Some readers may ask: price is 12 yuan, the stop set at 11.9 yuan, so do not be able to ensure that earn more money, when a few more happy? Right is good, but in fact they could not. Stock volatility a dime of time and sometimes do not have two minutes, once you have played, and the way the stock may be washed into 15 yuan, you will lose the chance of big money. The stop point should be set at 10.5 yuan or 11 yuan, about 10% of the stock you give breathing space, a normal rise in stocks, will not easily fall 10%.
Follow the stock market go away Do not talk to a friend!
This explanation is a simple rule: Do not talk to a friend buy or sell, buy and sell according to market conditions. In the trading floor, I often heard: "What you do today into the stock? I want to tell you into the point." Every time I feel that listening to funny, because it always reminds me of the three blind men in the former Pathfinder, followed by a followed by two blind men, the three lined up. The first blind man on the matter, and anyway, everyone can not see. The three eyes are often lined up a good pedestrian walk, you go your way, and I walk my, but also to facilitate chat, come across a stone ditches, everybody knows how to avoid. They also have a go, at which point they must be the best way to go smooth.
One really knows stocks are usually reluctant to follow someone else to buy, because you can talk to me to buy, but I sell when you do not know, the result may harm you. If you sell the stock, while also remember to inform you that how much psychological burden. Loss, then how should I do?
Friends, doing something to study the laws of the stock of hyperactive, learning to choose and the selling point selling points. A friend wants to trade does not matter, what material he is Dian Dian. Like you to follow the normal itself is blind, blind love lead the way.
The selling stocks, to act decisively, Do not hesitate!
In my November 2, 1994 diary of the stocks of such sentence: xinc (stock symbol), the number of shares 2 1000, 17.25 purchase price, rose to 23.50, not 21.50 sold today fell 16.25, stupid ah stupid! ! ! It really hurt pain! ! !
This is a record of four years ago, I can not remember the specific circumstances at that time, from the above few words, I know Singapore will be a selling point set at 21.50, when the stock fell to 21.50 to 23.50, when I do not know what the reasons why ghosts I hesitated, there is no immediate action. In the November 2, when the stock fell to 16.25. I had 8000 U.S. dollars to ensure a profit, reversing loss is 2000 U.S. dollars. I Tonghu stupid stupid ah.
Stock volatility has never been all kinds of things, or when it will always give you a small bounce from time to time, to give you a glimmer of hope, so that you feel downtrend has begun rotor. The stock fell again, your original hopes, ready to give up flesh, it is again a small rebound, to re-put your leash. Start small losses, after several such roads, and to become a big loss. This is what has learned to "stop" the Friends of shares will cause a lot of money loss.
The concept of stop-loss will not only reflect on your principal, but also including the Lee included. 10 yuan to buy 1,000 shares and spent 10,000 yuan book, rose to 15, you have 15,000 yuan in hand. Do not just as a paper profit of 5,000 yuan, not the letter, then put the stock sell the bank to see if the extra 5,000 yuan is real money or fake money. Fixed price of good appearance, when the stock fell to this point, not to dream, do not expect, do not give reasons, say to sell immediately.
Do not be "a very low price" as the reason to buy, they should not be "a very high price" as the reason for selling!
Today, I hand there are stocks, trading symbol is ihni, the company opened nursing home. Five years ago, it fell to 5 U.S. dollars from 15 dollars, I think the price is very low, and spent 5,000 U.S. dollars into the 1000 shares. The current license price is 0.25 U.S. dollars. My 5000 U.S. dollars only 250 U.S. dollars. The stock I have not stop, had "refused" Today, I use it to remind myself: "You never know how many shares will be down to the low!" Because people are very forgetful.
I found that novices especially like to buy cheap stocks to save, to ask me whether a particular stock to buy here, and they are mostly cap, lower stock selection. This low price is the stock fell off from the high prices, such as 40 U.S. dollars fell to 20 U.S. dollars. This idea may be derived from everyday life, clothing, lower prices from 40 dollars to 20 dollars, it must be advised of the side. This habit leads to the stock, naturally look for "price the stock." Unfortunately, your clothes with the elections of the stock selection, and in this line on the death. The stock fell to 20 U.S. dollars from 40 dollars, usually has its own internal reasons, what you conclude that it does not continue to fall? As an English sentence is like this: Do not try to pick out the knife down, it will pass on your Shouzha get bloody! The so-called speculation hand, the most important is that with the trend, the stock fell to 20 dollars from 40 dollars is obviously decline, you can not contrarian trip. Of course, if the stock fell to 10 U.S. dollars from 40 dollars, now and from 10 U.S. dollars rose to 20 dollars, that is two different matters of.
The discovery of a novice, he bought the stock rose when will be very excited, but also insecure, fear of the market to finally go back to lend a profit again. Chengri circling mind is the "stock is not to rise to the top of", "or other corrupt, and quickly sold there." Here we must remind the readers is: Do the "high price of" as a reason to sell, you never know how high the stock will rise. As long as the stock rally to normal, do not leave the stock. Remember mentioned earlier, the Wall Street maxim: truncated loss, so that their profits run!
Plan ahead, according to the established principles do
Shares, the clear understanding of your risk and return of all is. If the market fails to scheduled track of your run-time how to respond? Write down the best response strategy. Especially for novice, the stock market a few days later, when the shares themselves can not remember how to think. If your stop is 10%, 10 yuan purchase, rose 15 yuan, stop point will be 13.50 yuan, no good talking about the price, the stock dropped to 13.50 yuan say good-bye. If your stake in the original plan was 10 yuan, 15 yuan selling profit, then the stock rose to 15 yuan when it determined to sell, do not hesitate, although I stress that in this line is best not to book a profit point, but if you have such plan, followed suit. The method of stock trading is no right or wrong in fact, the key is you need to find a suitable method of risk tolerance, and do so in strict accordance with this method. As experience increases, you will continue to change their methods, which, such as spiral, like turning circle, you seem to still in situ, but in fact you have high level. Method can be modified, must also change with the accumulation of experience, it is important at any given time, must have a means, and use it to guide your actions.
Novices, one of the easiest mistakes is the lack of plan. Think that stock is down very low or someone said that a good stock to buy. How, after buying a track on the drawing board. Under what circumstances stop and under what circumstances profit一问三不知. If you are one of them, quickly learned to get things their own plans. Stock school fees are expensive.
The market has never been wrong, your own ideas are often wrong
How many times do you patting Naogua Zi cried out: "hell, no matter from what perspective the stock is no reason to be down, and it will soon rebound." My friend came to ask the stock will be listed in one of their analysis, final determination of the stock rose to the top, and that stock has dropped in the end. I can not prove right or wrong, I usually only recommended if you want to buy it buy it, but if the stock has dropped 10%, immediately disposed of. If you want to sell, then sell it, but do not sell you can not sleep.
Many well-known Wall Street experts, in this, both turned Gendou. People once they prend name, and reputation on the emphasis on everything, they think the stock should rise, not how l do? Naturally follows that the market is wrong, the market has not experienced the value of the stock. The result is The experts one by one have fallen from the throne. This is very much the story. The more smart people, the easier self-righteous. They are in life decisions are usually correct in the majority, some are starting something wrong, but ultimately prove correct. However, the stock line, and perhaps ultimately they are indeed correct, but until proven in the market, they can already shaved head home. Not to be opinionated, not a vanity, according to the market to give you the information to decide plan of action, one immediately admit there is something wrong, this is the way the stock market forever. (Ken Tan)
