What are the most vulnerable stocks of thinking errors Money Tips

Category: Money tips Release Date: 2006-08-26

How to get return on investment for most investors, you may first need to do is to circumvent the inertia of thinking wrong. Only by upholding the right of the faith, can we filled with so-called "stock god" inside information such as markets, not to be confused lost, to make the right judgments and actions.

Then we may take a look at the following error, you have several accounts?

First: To make big money, you must first predict market trends in the next step

Comment: Soros has admitted: "I am in the financial success and my ability to predict the time totally disproportionate"; Buffett's next move on the market does not care for any type of prediction is also no interest. Successful investors do not rely on market trend predictions. In fact, Buffett and George Soros could do not hesitate to admit: if they rely on market forecasts, they will bankrupt.

Second: "inside information" is the way to make a large profit

Comments: Buffett is the world's richest investors. His favorite investment "news" sources can usually be obtained free of charge: that is the company's annual report. When George Soros in 1992, with 100 billion pounds a huge impact on short, he was a "defeat the Bank of England" and the title. But the eye can see people of £ signs the verge of collapse. Even if not thousands, nor hundreds of other traders with the sharp depreciation of sterling made a fortune. However, only George Soros in full swing, and only he will be as much as two billion U.S. dollars of profits back home. As Buffett said: "Even if there is sufficient internal sources and 100 million U.S. dollars, you might have within a year of bankruptcy."

Third: decentralized investment can make big money

Comment: Buffett's astonishing achievement by concentrating their investment in creativity. He would focus on six of his choice to buy shares of large enterprises. According to Soros said, the important thing is not to determine whether you are on the market correctly, but when you are judicious amount of money, at the wrong time to determine how much money they lose. Soros and Buffett's key to success for exactly the same: The big investment is much higher than other investments and create the potential loss of profits. The effect of decentralization strategy is the opposite: you hold a small amount of stock of many companies, even if one of a skyrocketing stock, you may also be little change in total assets.

Fourth: To make big money, to bear the large risk

Comments: Successful investors are very risk-averse, they will avoid the risk as much as possible, so that potential losses are minimized. Successful entrepreneurs risk-averse, they are avoiding risk is the basis for the accumulation of wealth. If you go to take big risks, you are more likely to major losses rather than big profits end up. Successful investors is the same, they know that losing money than making money easily. That's why they pay more attention to avoiding a loss rather than profit-driven reasons.

Summary: Soros and Buffett's successful experience tells us, first of all to control the risk, followed by the self-confidence can not predict the future, the third will not hearsay "inside information", the fourth of painstaking research firm fundamentals, focus on holding the value of growth stocks. In the A-share market has been gradually against the background of full circulation, investors should learn how to content from the performance or extension-type growth to tap the value of the stock to grow, rather than by virtue of the so-called news stock picking. Jiang Ren