Category: Money Tips Date: 2006-02-16
"Why is always a loss of me?"
In the stock market, many small and medium investors often ask such questions. Them or blame the market, or a listed company to blame, or blame the "banker", but often overlooked point: ask yourself.
The stock market, there is a commonly used word --- "herding." Talking about a large group of small investors tend to rush into mass action in the stock price go up for the main Sedan Chair; and when the stock price falling, sell into often rushed out, will hand over the main low-cost chips. Reality of the "sheep" and the stock market investors at this time are so similar, no wonder that "there is such a say."
Let's look at a fable. A sheep into the heaven, and asked God: "We are sheep's head with a sharp angle on the long, or at least should be very good defensive weapon, right? How often is the head end of the day there is no corner of the wolf to eat it?"
God's pleasant to tell it: "You are sheep and wolves Although there are mammals, but you are the food --- grass everywhere, so do not worry about the eating and drinking; while the wolf is not the case, they are carnivores, their prey the object is not exist everywhere, but also often run away, they are even in the fight were injured, and must be trained to a predator's ability, otherwise it will be difficult survived. Furthermore, the wolf eats the sheep was often a lack of self-protection awareness, even sheep, also in the 'wolf' when their Duolu flee, unlike the planning of the wolf as a regular advance and retreat, so results to differ materially. "
This is the fable looks very simple, but we are human but the stock market has a profound implication. Small and medium investors in the stock market and the market in the main, but also are "mammals," but small and medium investors from all walks of life, naturally not the main way to make money in the stock market to rely on, "Wu food"; in the sale of stocks, Many medium and small investors are indeed some "arbitrary" and not too strict program, or they are in the development of "plans", but rarely (or never) strictly in the past. The main market is completely different, and when admitted and under what circumstances lighten up, and when retreat, during which how to operate, have strict planning and iron discipline, would not tamper with them. It is no wonder that "crying wolf" of the full backbone and the "sheep" of the small and medium full retail will be there is a huge difference between a.
Then, as "sheep" of us, how can cultivate their own "wolf" of it?
In fact, very simple: to transform itself from the "herd," where "clean out" to join the queue to the wolf, they're done.
The so-called "wash out from the herd where" does not require us to be institutional investors, but rather look at the issue in the majority of investors want to stand in opposition, and more from the agency point of view to consider this issue and develop a rigorous The "operating procedure" may be supplemented, but not tamper with them or even give up. For example, in grasping the hot market, when the disk is not seeing any significant change in follow-up after stumble, but move faster than others in all aspects of access to information, and pay close attention to the monitor plate movements, as well as volume changes, if slightly transaction will take appropriate measures, the first time to keep up with the pace of the main force.
Of course, called "standing on the main point of view" is relative, as a small individual investors, we certainly do not grasp the true backbone with the same amount of information, and can not be matched with the analysis and research capacity. But we can root for signs of the market to determine the main trends and to maximize their consistency, which needs "divorced from the masses," the courage, perseverance and persistence of the spirit, which requires us to practice in the stock market slow slow practicing and mastering.
