Category: Money tips Release Date: 2006-02-23
An experienced professional masters often speak to investors following a novice investor behavior is very similar to the story:
San Mao's dad gave a dime to fight Sanmao soy sauce. Grocery store owner of the San Mao Naqu after bowl filled with soy sauce and find it difficult to say: "San Mao, ah, there is a little bit of sauce left over to it, how do ah?" San Mao, a look, giggle: "The boss, This is not easy? I have a way miles! "spoke to a bowl filled with soy sauce doubled, said that the bowl can be installed not to do? ----"�San Mao, a home, his father a look at What is most perplexing, cursing: "The San Mao You're stupid can� a gross money to buy back such a point of soy sauce ah? You cheated! "San Mao, proudly said:" Dad, do you think really that stupid son? Behind this there is it! "Spoke another bowl turned over to the little bowl of soy sauce that is also upside down ... ...."
Many investors in their daily life and work was very smart, to reach 180 IQ level, but once into the stock market IQ of only 80 levels, once the quilt a few times lower IQ, or even the same as the San Mao reached a zero level, is lower than the IQ of a rock, because rock's IQ is 20, it will not take the initiative to buckle down to action a bad thing. The IQ is zero then investors should sell the stock at the lowest point of buying at the highest point.
Here are some of the common investors, the rapid decline of the example of intelligence and hope reading will not occur again the case.
1, any short-term price fluctuations can affect the mood, feeling the worst at the lowest point, the highest point in the best mood
This situation is most typical of the three non-concept (no combat experience, no real information, no real state of mind) Investors in performance in the real key is to grasp the key to the simple things they can take advantage of two key points spread to make money, rather than impossible to guess right most of the time the short-term volatility to make money in the stock market the way some large profits to be gained through suffering and reverse some time fluctuations in torture. If your mood is not reflected in the stability of your analysis and stock price fluctuations in combination can only say that you are not as good as a stone, even investors.
2, blinders, not seen Tarzan
Securities investment activities, investors need to mobilize all the energy, the need for both broad market analysis, but also the analysis of individual stocks, but also a means of risk analysis and operations at the same time with the new emerging opportunities for comparison. While many investors in investment activities, only the eyes of the heart according to their own wish to focus on one thing, other obvious factors that do not see, in particular, only analysis, there is no operational means, as long as stock prices do not fluctuate according to its own analysis, as soon as to cast doubt on the timing of investment activities in a not yet completed, when that product has not yet off the assembly line in a time when producers put the gates to pull their own, of course, out of the waste, must also lose some costs.
3, so that the investment out of control errors
As the human factors in investment activity will appear some of the inevitable mistakes, when errors occur, you have to do a few things below, the first thing is to analyze the risk of post-failure, because only the operation of large risks bound to be short-term, small risk of things to pass time or other efforts to reverse the investment analysis in addition to the opportunity to analyze there is risk analysis. The second thing is that there are key points of profit does not, if it exists, and far outweigh the risks, you can use the operational means to correct, do not easily end the program. The third thing is the opportunity to point if they have disappeared, and the higher risk and should be decisively to end the project, it may have been mistakes.
4, unrealistic pursuit of perfection
Plenty of opportunities in the stock market, but easy to grasp the obvious opportunities are few. Many people in the beginning can maintain a stable state of mind, once the market that he did not seize the opportunity, will immediately psychological unbalance, a phase that he would forget the goal, as long as a period to maintain a stable income rate will be, he will be paranoid of every opportunity the market is prepared for themselves, forget that he who thought it was the Emperor it. Each stage in the securities market to concentrate on a rabbit is not easy, paranoia while grasping a few rabbits, the result must be a rabbit is also unable to grasp.
5, only the analysis of operational means there is no
Investment activities is crucial that the sale of action and holding action, and the propellant is added to adjust their actions, investment analysis only for those actions to prepare for work. But many investors only analysis, there is no action, or operation is only a simplistic buying behavior. We should know that the short-term timing is unpredictable, so you do not expect the best price and timing of the whole warehouse to seize the opportunity should be at a reasonable price and reasonable time to do corrective batch buying and selling the same. If you can do this, your analysis is not to waste, otherwise a very good analysis was not profitable.
