Category: Money Tips Date: 2005-12-28
This is a common phenomenon: When the stock price down quilt when the flesh is difficult to sell, and when a profit when the price rose very easy to sell, this is "do not gamble or bet up." When the stock investors tend to bet on falling stock prices would go up, and when the stock price rose after the fall but you are afraid, unwilling to bet on falling stock prices. This phenomenon comes from psychological factors. The following is a frequently used psychological test.
900 personal illness, you can choose two kinds of drugs, but results to differ. The drug of choice â‘? can save 300 people. The drug of choice â‘? 1 / 3 probability of saving all but 2 / 3 probability of one could not save. Q. Choose which drugs? The test results: 72% of the people the drug of choice â‘?
Here is another question:
Is also the 900 individual sick, you can choose two kinds of drugs, but results to differ. The drug of choice â‘? certainly there are 600 people were killed. The drug of choice â‘? 1 / 3 probability of saving all but 2 / 3 probability of one could not save. Q. Choose which drugs? The test results: 78% of the people the drug of choice â‘?
In fact, this is a common problem, the key is that the former is to highlight the benefits and the latter is the highlight of the loss. The same question in two different ways to ask, the answer is completely different, and fully demonstrates that human beings are more willing to obtain gains rather than losses.
Back to the "do not gamble or bet up." When the quilt fell after investors do not want to see their book has become a loss, even more reluctant to sell and get their own losses, so more willing to bet on rising stock prices. When the stock price rose, investors are more willing to do is to realize their profits on the book to get their own benefits, rather than putting themselves down and so reduce the price if the book profitable or even quilt, they are also reluctant to bet on share price decline.
It is precisely because of this important psychological characteristics, leading to falling stock prices were tight during the quilt cover their chips do not sell, making volume has shrunk dramatically. Once the stock is bound to turn up a large number of profit-plate pouring, we also had up to heavy volume argument.
In fact, under the equity investment is not gambling, so we have to overcome the weaknesses of human nature in a positive and rational attitude towards the stock price changes, the time to sell has sold, do not bet on up.
