Category: Money Tips Date: 2007-05-10
A simple recipe for many individual investors actually outperform. This year, cap, lower the "take off" so that love-cap, lower the "small, scattered," blow off steam raised his eyebrows.
Individual record is good, more due to the bull market of the crazy, from individual investors are not exposed weaknesses. However, Hu Zhi has reached 4,000 points above the market fluctuations and risks are increasing. Individual investors pay attention to speculation, frequent operation, and low awareness of risk can we give them trouble?
Hu Zhi has been 4,000 points, while the increasing number of accounts opened in the new circumstances, more and more new investors into the market.
With the financial awareness of the residents as well as the A-share market has never been higher since the share reform after the earth-shaking changes, a large number of depositors money rushed into the market for fear of not keep up with the bull market of the bus. It is not fully prepared and invest in a lot of life experiences of new investors, just that the recipe for a simple, in the year of the stock market in the "small scale chopper", and the harvest was quite good.
From the empirical point of view, because there is always one way or another retail defects in the long term, individual investors can beat the stock market long-term probability is quite low. And sum up all the body occurred in the retail market operation methods and thinking can provide the market with something to think about and learn from.
For example, after the blind comparisons ignore the market risk. Investors should note that the long-term market volatility and short-term relationship. Those around him have already made money in a bull market, often because of its relatively early awareness of the stock market into an opportunity, and thus below the market in 2000. But for new investors, because the broader market due to funding large-scale into the ride with the tide, so the cost of the stock market has been dramatically inflate the stock market rise after a large-scale, its cohesion among the inherent risks are also constantly.
For their ability to "over-confidence" is also a common affliction among investors. In the long term, as institutional investors often pursues a value investing philosophy, with a view to beat the market long-term perspective, therefore, over-investment in their own ability to maintain confidence in the future market when the major variable, individual investors may face embarrassment .
Involved in the risk of the market, do what is also important. Some news from the view, some investors through a mortgage and real estate financing means access to stock market trading, and even some of the "family property" all reached the market. As everyone knows, debt approach tends to enlarge his personal financial risk, and Quotes, once a big fluctuation, investors may enter into a considerable disadvantage, but also to increase the daily work and life troubles, and even to the family grave financial crisis.
In addition, individual investors away from the city, is also too close to a problem can not be avoided. Refine the market because of daily short-term fluctuations, often overlooked Quotes trend of development will make the quality of life decline. Moreover, because out of the market are too close, there will always be the message from all sides of the traction. Sometimes, over-indulged themselves will make their own main business abandoned. This is for the future development of individuals is quite unwise.
Quotes development has its own law. Among the sea of the stock, investors both enjoy a certain degree of "surfing" fun, but also need to understand that the market risk exists every day. In addition to the stock market, the life or more components. The so-called "Kung Fu lie outside of poems", and the stock market to maintain a certain distance, they could put themselves in the stock market gain more, that they try to do it?
