Category: Money tips Release Date: 2006-01-09
Inquire about the opponent's reserve price, in business negotiations or bidding is a very common business tool, but also a basic strategy. In fact, this strategy also in our flame necessary for the stock market.
The hype on the stock market? When we want to buy, sell side has become rivals, and vice versa. Buyers and sellers on the market each other's rivals, the share price is that you come to my disk to reflect the bargaining.
If we buy the stock, then that is that the stock should be higher. While the seller that our opponents thought that stock prices should be dropped. Therefore, the current bid prices for the moment only the balance of trade price, the final price both sides have yet to see, but this is only a matter of time, there is always a winner and the other side is the loser.
One thing is certain, when we buy, the sell side that the opponent must have thought that stock prices are too high, so competitors must have a reserve price in mind that the stock would be down to a certain price. However, this does not necessarily upset the last can be achieved, or the stock price fell less than this position, or falling to more, so we do not need to really know the opponent's reserve price. In fact due to so many opponents, but they also each have their own low-cost rivals, so this so-called reserve price is not unique.
It seems that we do not need to inquire about the reserve price, but the basic business strategy is not no use, the key is how we use it reasonably.
There are two ways to overcome rivals, one is to judge a stock will rise, then buying is the best choice. Another is to determine a stock will fall, then give up to buy or to sell.
When we want to buy, when, in fact, is certainly optimistic about stock prices, but we must not forget that like this: Why opponents to sell at this price?
Opponents must have thought that stock prices should fall, or how much is not our concern, but the opponents will have kind of thinking is why we should pay attention to.
Our key is to find out the opponent, rather than arrive at the reserve price, the reasons for the reserve price.
In fact, we bought the grounds and reasons for selling opponents are on the table, the only rise in the market seems to rival the reasons for the fog disappeared.
To enter the market on since 2006, for example, which catch on tape for some time along the way, in spite of buyers and sellers This is the outcome of a transaction, but we can say buy side to win.
We have reason to believe that broader market will continue to rise, then the opponent's reasons?
To do an objective analysis of the reasons for opponents, a prerequisite is necessary, that is, put himself into a position of opponents, in the "If I were rivals", to consider the issue.
I am now the seller, what is the justification?
The first reason: new from the old.
In fact resumed the issue of new shares. This is not a simple restoration of distribution, it is in full circulation distribution system.
We have been told: the state-owned assets must withdraw from a number of industries. A large number of quasi-state-owned shares of listed companies are waiting for post-marketing cash.
Also new from the old means that a large amount of non-tradable shares will enter the circulation market.
IPO in history there have been on the market to push up the role, but equally there have been some deterrent effects.
The second reason: full circulation.
Started in June last year, to reach the market now twice the number of non-negotiable chips will be thawed in the end will come out much now no one can know.
Fully tradable shares has been resolved is not a sign of reform implementation, but the real non-tradable shares into the market.
Decided to share the most important factor that? Not say it is value, otherwise the market will not be down to 14 times the price-earnings ratio.
Supply and demand relationship, this is the decision to stock the most important factor.
The results of these two reasons will lead to great changes in market supply and demand, and this is where the opponents choose to sell the lung power.
With "If I were a rival" approach makes us a lot of reason.
