Category: Money Tips Date: 2006-11-26
In all my prospective clients, give me one of the most impressive is that Mr. C. He is the owner of several chain stores, the capital has tens of millions. Also heard that there have been thousands of yuan in the stock market afloat.
In early 1999, the U.S. high-tech Automated Quotations index - the Nasdaq composite index (NASDAQ) launched an unprecedented great bull market. Rose to 2500 points, C analysts believe that the U.S. high-tech stocks big bubble but there is no reason to maintain the high. So, he starts from around 2800 points, vigorously shorting NASDAQ index futures. Broken up 3000 points, he had a loss of nearly 20 million U.S. dollars. But the big C, said it does not matter, still a lot of money behind him, Jiu Buxin where it rose to NASDAQ will go one day correction. Then supplemented into the deposit 250 thousand U.S. dollars to stay warehouse.
Unexpectedly, NASDAQ bull out of control, continued innovation and surged as high as 3500 points. At this point the account has a loss of C large to 50 million U.S. dollars, the wife and kids tried to persuade him to give up liquidation forget. But the big C to tell a friend, has he survived the experience several times, eventually prove his point is correct. Furthermore, to tolerate for so long, so much loss of money, it cut positions, too lacking in face of the. Anyway, there are several shops and land in the hands, go to the bank to move money, and then make up for margin, and must stop loss sell at a loss.
Poor days not from the people's wishes, NASDAQ index "cruel" to go down to the "irrational" to break 4,000 points shot up. Since then no longer received a C big phone or message. I heard he was being forced liquidation brokers, at least have been a loss of 750,000 U.S. dollars.
Unfortunately, more than a sore right! Originally just think 3000 is the head, should not be broken, and if it is really a breakthrough that their judgments are basically wrong, should not or can not be reconciled in order to face, relying on its own capitalized, they will not pre-set stop-loss stop-loss point . He is what I say "about face-saving, can not be reconciled with no stop-loss single-contrarian" Such investors. With deep pockets like never recognize lose, do not believe that stocks would head the kind of person never came back.
Remember, there are trading scheme, combined with sharply mistake and re-adjust the re-enter the market, is the key to success.
