Category: Money tips Release Date: 2006-04-11
The recent stock market weakness continues, the market waiting to see a strong atmosphere, with the stock funds to continue the withdrawal of the broader market intraday is difficult to organize an effective counterattack. Recent market also faces the bird flu, issuing new shares and other uncertainties in the broader market trend will be continued instability in the adjustment.
In the tape disadvantaged circumstances, the operation requires special attention:
Should pay attention to maintaining a stable psychological state of mind. The stock market in a period of instability, investor psychology is one of the main cause operational failures. Quotes more instability, more to maintain a stable state of mind, can not be too hasty.
In the operation should be careful not to random positions. Throw in a stock profit, or stop after the hands of the funds should be bored to live. Do not just came out today, tomorrow will buy. This operation having a good time to the course you can, but will face greater instability of the stock market risk. The stock market instability, the more serious the position, the greater the risks.
Once the market risk of the emergence of new, broader market choices down, the heavily loaded will face severe financial losses. Therefore, investors should be appropriate to reduce positions, holding a small number of stocks and flexible operation.
In the holdings on the one hand, those with resistant tape to hold down power stocks. On the other hand to reduce the number of types of holdings, number of species of holding stocks over the case, in practice often a loss, in particular, having a mutation, it is difficult and timely response. To reduce the number of types of holdings can increase the risk for rapid adaptability.
In the real strategy to control the risk of the most effective strategy is to just win and stop as soon as investors find index noticeable Po Wei, technical specifications to build at the top or one's own stake in a substantial reduction in profits, even when you have a loss, we need to take the necessary protective strategies. Just to keep winning through timely and profitable results, through timely stop to prevent further losses.
In the thinking of the broader market, we should have a clear understanding. The reason why investors prone to mistakes, often because of Quotes lack a clear understanding of the evolution. In particular, having a period of instability, because of broader market itself there is a lot of uncertainties in the afternoon if investors lack the necessary understanding of the direction Quotes subject to rush to intervene in individual stocks, tend to incur greater risk.
