Category: Money tips Release Date: 2007-03-18
Forecasting and operations, is more important?
Why the loss of financial speculation by many people, earnings were little? Because most of us will unconsciously fall into a variety of ideas to extricate themselves from the no errors, so had to use money to pay the wrong price.
Forecasting and operation of financial speculation can not do without the two basic aspects. The relationship between these two links for that? As a professional investor, how to manipulate the relationship between forecasting and operations is correct? Where is our thinking errors?
It is true that we all know the basis of prediction is the operation, leaving a reasonable prediction of the speculative operation is blind and dangerous, so the forecast is placed in operation is more important than the position seems to be reasonable; but we overlooked one basic fact: the pursuit of speculative The fundamental goal --- a profit from operations, rather than the estimation, all is right or wrong prediction, it is necessary operational links can be converted into profit or loss, so despite the forecast is the starting point for speculation, but after this point and can not be directly to reach a speculator looking to reach the end. This is erroneous thinking that most of us investors pay attention to the starting point, ignore a path, attach importance to the starting point, ignored the process, attach importance to the starting point, ignore the relationship between the start and end.
In such a mistake under the guidance of speculative thinking, investors tend to be complacent in an accurate prediction to heart failure in a predictable, but the big win loss situation of no small change; often putting in a lot of time and energy figuring out Prediction Method and skills, while the right skills and methods of operation are spare any time, so a careful analysis of the previous, hasty action on a new, perverse in the end; tend to indulge in a list, searches and interpret the various causes and consequences of rising or falling markets, while the real value The investment philosophy, operating principles, discipline and turn a blind eye, be futile without knowing it.
The correct way of thinking is the re-action of light projections. The market forecasts are right or not is not the most important, the most important thing is whether our operations properly complied with the established rules; extreme stresses to predict the results correctly and operating profit is wrong, even dangerous and undesirable patterns, prediction error The operating correctly even if the result is a loss of value and must adhere to the model.
Forecast is a hobby of mankind, but also a dangerous hobby. Forecasters, like a child playing with fire, are often faced with their own conflagration created panic. Who can not appropriately address the projected follow-up services for investors, and each time forecasts are dangerous. Light-weight prediction operations investors often become victims of their own forecasts. Give up attachment forecasts, investors focused on operations in order to become masters of their own.
