Category: Money tips Release Date: 2006-06-14
Invest in new shares in the stock market most likely to profitable investment model. I was the old market investors in 1995, when the emergence of new shares issued Bohai Chemical hype, from 2.5 yuan rose to more than 8 yuan, followed by the Dongfang Electrical Machinery, Luoyang Glass have emerged and the speculation of investors subscribed crazy situation. I just then begun to focus on investment in new shares. Later, with delisting the system, I also found that there is no new stock is the only withdraw from the market risk section, because the shares had just listed, most of the performance of good fundamentals, good condition, it also strengthened confidence in me to invest in new shares.
IPO investments over the years, brought me a very generous benefits, I bought Yantai Wanhua, CITIC Securities, etc., that are turned over the somersault of the rose. However, having said that, is a package of new shares is not earned, instead of losing, I bought the upper hand Hi-tech, Shanghai Pudong Development Bank from the early market has been down, but also caused some damage to me.
Why are some new shares can be too proud, while others are new shares will be overshadowed by it? I have found that the trend of new shares on the one hand the general trend toward a relationship with the other hand, the market is too high expectations are often the main reason leading to weakening of new shares. The shares of those Gaokaidizou has a feature often the initial listing, the listed company's publicity campaign is doing very well, making the market as investors expect a higher and thus have to buy their listing. This situation will lead to a serious state of mind Xishou the holders of shares are unwilling to sell; funds are not effective due to the main collection of chips, thereby giving up the speculation on the stock.
This shows that IPOs are not noticeable before, and who do not have too much publicity, not too high expectations, the stock market lower after the orientation tend to be more promising, Yantai Wanhua, CITIC Securities, etc. It is precisely because public lower position to become a strong rise in "dark horse." So, I think we must invest in new shares master the principle of proportionality, requires not only the advocacy of new shares to be modest, in the new shares should also focus on other aspects of the principle of proportionality.
I also found the first day of IPO turnover is too large or too small, not good, in general, the first day a moderate turnover more likely to be dark horse.
Statistics show that the average IPO first-day turnover is about 50%, while those in the first day of the turnover rate is higher than 70% of the shares, one third may lead investors to losses. On the contrary in the intervention may still be profitable after listing more than 80% of the stocks, rarely break 70% of the turnover on the first day the situation. Of course, the first day of intervention turnover less than 35% of the shares, investors are often difficult to profit.
Operation in the investment process, I also follow the principle of moderation chase. I did a statistical :1997-2004 IPO first day of the average rate of return as high as 125%, but the market for three months when the average return rate was only 57.54%, which illustrates the first day of IPO is highly speculative, stock prices are often higher than fried. Therefore, I rarely buy new shares listed on the first day, but in the IPO for some time, waiting for a clear positioning of new shares and then choose the right time to intervene. This investment risk is minimal, but the biggest profit opportunities.
Week 1 (June 19), China CAMC listed on the morning of the trend is still relatively normal, it is strange skyrocketing Quotes appear in the afternoon, in the effects of stimulation to make money, some of my friends have in the disk chase shares of the Unit, I tried to persuade all too late. This reminds me of Gordon cards prior to speculate when the fund has met such a situation, the fund listed on the first day of skyrocketing to 10 yuan, I finally was out of the indemnities. Therefore, the new shares was good, but be sure to grasp the principle of proportionality.
