Eight years of research the sub-warehouse Money Tips

Category: Money tips Release Date: 2007-05-11

Previously seen a classic formula for return on investment reasoning - positions influencing attitudes, attitudes, impact analysis, impact analysis decision-making, decision-making affect earnings.

According to this formula of reasoning, the real impact of the vast majority of investors, the decisive factor is the revenue position, that is, position control. Position control, good or bad will have a direct impact on investors in several important aspects:

1, position control will affect the ability to control the risk to investors.

2, position control, whether good or bad decisions of investors profit from the stock market long-term stability.

3, position also affects the depth of the mentality of investors, in heavy combat positions will make people worry anxiety.

4, the most important positions will affect the attitude of investors in the market, making it easier to analyze and judge the deviation.

But now I am also much more than that, I think the significance of sub-warehouse lies in its ability to improve (or, say Po capture) operation success rate of

For example, I am now the success rate of 20%, even if an average of five per operation can be successful once (it refers to earn more than 10%), then I have a variety of practices, regardless of position can be filled warehouse operations can also be divided into capital 3 or 5 copies to do, then what kind is good, I think that is divided into five copies of the results are the best.

Why, if the big warehouse, so if I am unlucky enough to last until there is successful, if I were an average of two weeks to do this once (very short), then to two and a half months only to see gains, in this period of time where we must first bear the long-term psychological stress, and if the first few operations the psychological fear of a bad loss to a break, it happens when the successful emergence of a ticket you do not grab it, then this one 20% success rate will disappear, and the probability is not so dead, there are ten times you may have lost eight years before the final twice before success (anyway, the probability is 20%, I said that if there is such a best a bad case), then you have to stand over the length of storage operations and multiple psychological and account for the double test, you can insist on down? Insisted on the lower success rate down.

If the sub-warehouse, of course, too few points is not good, I think your success rate should be matched, for example 20% or 5 successful one, preferably in five copies on more than 30% on sub-3 were more than If the success rate of 20% of your money only to 2 or 3 were also likely to reduce the success rate, why, because you are five (times) before a successful one, you only buy three funds (according to Mancang example), may be just to be a successful one for missing, such as I myself understand it all too early in February when I bought the fund is divided into four copies of Hudong Heavy Machinery, China Microelectronics, Shenzhen Vanke, Jin Jing science and technology, in fact, I was system, thus making the success rate of close to 20% less than I should be in small point, I was also bullish CYTS, when on 9 6,7 bar, the results of February 23 after the tape began to weak, and I sold the four votes, a small loss of deep Vanke, China Jin Jing Science and Technology Microelectronics and 1,2 points in the basic operator level push Hudong Heavy earned 12%, but at the same time from 9.6 have been CYTS risen to 12 7, depending on the operation of my way to buy if that should be sold at the 12 or so, you not forgot to see if I earn a 20% of the vote, my success rate would have this one down and should be raised in However, if not Hudong Heavy earned, the success rate is likely lower.

So there is a certain stability in the sub-store can not only state of mind, but also can maintain the success rate, of course, am not in a good position too, the profit is low, so I tell myself in the general operation to match the success rate of 20% on sub-5 copies of (sub), 25% on sub-four (times), anyway, should be a basic guarantee for a down to catch a ticket or two down the bar to catch two tickets (I said earlier, the probability is not dead, five successful 1 only 20%, 10 the success of two is 20%, sometimes it may be losing money for eight times before with out 2 times)

Please note that here is a model that does not mean that all funds from time to time to buy up to full warehouse, I said yes to working capital as a circle object of study, is cash flow circle, such as now I have only found 2 for involvement of the votes, I system is currently the success rate of 20%, then I would use 40% (five were inside the two copies) of the funds to buy, over two months, I may discover that the third can only intervene votes, if the operation in front of me so that there is no change or a success rate of 20%, then it was on getting 20% of the funds to buy, then perhaps as early as the previous two tickets sold, the total stock position only 20% of the , and I am not trying to simultaneously Mancang approach to sub-warehouses, but in cash flow to do research using the lap

I said above, the importance of sub-warehouse and basic strategy (personal opinion Kazakhstan), I put his real sub-warehouse methodology is generally say something, we look at the line, and a matter of opinion and Kazakhstan.

First of all, I am usually in the warehouse of the shares were among the 3 to 5, but note that I do not mean the same time, all of these 3 to 5 copies of the money to buy and I am only the funds were divided into equal portions so that when I think that the When an opportunity came, I was put in a go, why is 3 to 5 copies of it, I talked with my system a success rate is quite another, according to probability theory, 20% -25% of the proceeds the risk ratio would be the best.

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Here I say something that some people buying methods (and the use of funds approach), many people like to do: First, to buy 500 shares, if the sets, and bet double; another 1,000 shares to cover short positions, if the sets would no longer cover their short positions 1000 or 2000 shares, until the exhaustion of the capital, which is the so-called low-smoothing method, from the perspective of sub-warehouse is constantly increasing one-vote position, until the full warehouse on the grounds that as long as the rebound in, you can regain the previous total loss, in turn, become a winner, I know a lot of people still think it is a good investment strategy. But look at this from two aspects is wrong, first you do not have enough bargaining power to constantly make up, for example you buy 15 yuan, 13 yuan fill in, and fill in the 11 yuan, and a maximum of 9 yuan added, and You have no money (only making it possible to raise money to cover their short positions constantly), if it continues down to 5 yuan (you can not deny that there is such a probability, just one you do not seriously injured Hui Shou), or three-year how to do, your mind can not bear such a depth and length of time, you are either low paid out flesh, or numbness in holding on tight, you do not think you do not sell that does not fail, pay attention to holding on tight when you numb when you have failed , because you forget that you come into the stock market were doing, and this is not the bank, where you learn and use strategies place to invest, you have not in the "stock" of. The second is the position you are losing money continually bigger, like the last time you bought 500 shares of other votes wins, but this time you use the warehouses full of money to lose, the entire flow from your operating strategy, you are using less position to win, with the number of positions to lose, to win when you win less when you lose much more input and persist in such a strategy, amplified risks, you do not lose who lose ah.

Some people have also sub-warehouse, but there are Shigekura Qingcang divided, in his view have a great chance to Shigekura even when heavily loaded 1 / 2, but I think the average allocation is the best, why, because not any one transaction can be absolutely correct prediction, and if you predict a very prospective, and then there is no need to sub-warehouses, so if you vote up and down in a re-injection, in fact, also expressed the hope that you are, if you are to be a probability system , you should believe that the probability, rather than expectations, the probability is just to tell you how many times you can win once, you can win an average of how much, but did not tell you definitely win the only ticket, pay attention to you in this life may be trading hundreds of thousands of times, Well, in this composition of hundreds of thousands of the probability of the system, this vote is only a fraction of a percentage of fills you should pay more attention to build their own profitable probability, the average distribution of the meaning is that you do not agree with and dependence on any one buy, you can always hold for any one to buy a certain skepticism, you can walk out with you, it does predict a decline trend in the opposite quietly stop.

In addition, I always pursued a number of super-strong stocks, but my position in general even smaller, because the risks the greater the investment ratio should be smaller.

On the other hand, did not properly sub-warehouses are also intolerable. I generally like to do different types of votes in the sub-warehouse, it is very important, for example, where my portfolio will also buy shares of hot stocks and little known, high-priced shares and cap, lower, or the fund and brokerage Awkwardness of Awkwardness co-exist, From the mathematical model, if there are multiple benefits and risks of the same species unrelated to each other, appropriate diversification of investments than the concentration of investment not only risk is small, and the average value of funds quickly, if I also bought the same type of unit, So buy one and buy a 10 makes little difference, there would be no need to sub-warehouses, which is a very simple truth, because Quotes one after another, a kind of vote can not always active, you see it live into the potential of the chase it should take a rest, so that the various types of buying from a probability point of view, feng shui rotation, with a total up to get me one.

In conclusion, sub-storage has always been very simple, but many people do not understand its true meaning it will not be used, its meaning, including technical and mentality of both, if human nature inherently simple question then will be straightforward, if human nature was originally on complex it would have a simple question, people would simply not use them, so this is what the value of sub-positions, of course, speaking from a purely technical position is really to avoid the sub-error rates and error rates, but only if you need to So there is naturally a good state of mind can guarantee you the same time, full time position to capture and to ensure that the "success rates", so a comprehensive view of technology and state of mind, sub-store is really valuable, that merely to stop to avoid the error rate and I agree that the failure rate, sub-warehouse and stocks are not the only way to really stop, because it is after all not k-line and so on purely technical, but the sub-warehouse and stop speculation is correct premise is to ensure proper use of technology, the premise of to serve as a successful speculator, requires a profound understanding of its meaning, please refer to the sale of the Code Gann first 21 articles I and III

Finally, the Gann 21 Code of Practice which involve the sale of the contents of the warehouse with you encouragement:

* Code of Practice for the sale of one of Gann 21: Every time the stock market trading, the loss should not exceed one-tenth of the sale of capital to apply this rule you only do sub-positions, the heavily loaded or full warehouse to hold a vote, a fast - lower limit your losses down and can not be avoided.

* Gann trading of 21 Code of Practice 3: Never too much never too much trade here, meaning the sale of three layers:
1. The general trend of bad times do not put too much money
2. Do not operate too often
3. Single strand do not account for large proportion of investment portfolio

These are my eight years of research on sub-warehouses are welcome to explore master.

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