Category: Money tips Release Date: 2007-04-22
Many investors buy stocks when it was casual, as long as stock analysts who recommend, or conducive to good talk, we rushed to go. For these friends, to buy stocks than to buy food is also free, grocery shopping but also pick 3 pick 4 it. One can imagine the result of random, mostly after being stuck buying, and then have to wait for some sort of relief
The author of water birch
If you buy a stock can have some effective principles and strictly followed and implemented, can greatly reduce errors and increase profit opportunities. Here are a few principles of effective bid.
1, the trend in principle In preparing to buy the stock before the market's operation must first have a clear tendency to judge. In general, the vast majority of stocks are running with the broader market trend. Tape on an upward trend in profits to buy shares more easily, and in the top of the buying is like Hukoubaya, down trend is unlikely to buy the survivors, plate bureaux buying opportunities are few. But also according to their own financial strength to develop investment strategy is to prepare medium to long term investment or short-term speculation, and to clarify the operation of their own behavior, a definite purpose. At the same time, the stocks selected should also be a strong upward trend in stock.
2 batches in principle In the absence of full grasp of the situation, the investor can buy in batches bought and distributed approach, which can significantly reduce risk. But scattered species do not buy the stock too much, generally 5 or less suitable. In addition, buying in batches according to their investment strategy and funding in a planned manner.
3, the bottom of the principle of Medium and long term best time to buy stocks should be at the bottom of the stock has just crossed the region or at the bottom of the initial rise, it should be said that it was time to minimize risk. While every day operation of the short-term opportunities, we should try to take into account the short-term bottom and short-term trends, and to Kuaijinkuaichu the same time, not too big amount of money invested.
4, the risk principle The stock market is high-risk high-yield investment locations. Can be said that the risk of the stock market everywhere, ever-present, but also there is no way to completely avoid. As an investor, should always have the risk awareness, and possible risks to a minimum. The time to buy stocks grasp of the first step is to control risk, but also an important step.
Buying the stock, in addition to considering the broader market trends, analysis should focus on stocks to be bought up a large space or down a large space, and when on resistance and lower support files located? What is the reason for buying? If we do not buy up after going down how to do? Factors such as these when you buy the stock should have a clear understanding, so that you can reduce risk as much as possible.
5, a strong principle of That "the strong Hengqiang the weak constant weak", which is an important law of the stock market. This pattern will buy stocks when we have some guidance. In line with this principle, we should be more involved in a strong market, with less or do not enter the market weakness, in the same plate or the same price or has options to buy the stock between the strong should be buying stocks and led the unit, rather than weak stocks or that the compensatory growth and low stock price.
6, the principle theme To the stock market, especially in a relatively short time to get more benefits, attention to the market speculation themes and subject matter of the conversion is very important. While the endless variety of subjects, conversion faster, but still has a relatively stable and a certain degree of regularity, if properly handled, there will be handsomely rewarded.
We buy stocks when the stocks in the middle of the selected topics should be buying the stock has given up no subject shares, and to distinguish is the main subject or a short-term themes. In addition, some subjects are often fried fresh, while some themes are solo, fried once finished, the speculation is very short, the future has little appeal.
7, stop-loss principle Investors buying the stock, is that the stock will rise before buying. However, if the purchase is not as expected after the rise but a fall in the how to do? If only shareholders to wait for some sort of relief is fairly passive, not only takes up money and miss other profit opportunities, more importantly, the burden of post-lock-back will also affect the future operation of mentality, but I do not know when to be some sort of relief. Instead of passively hold-up, it is better take the initiative to stop, temporarily lose out to identify wait and see. For the short-term operation is more so, the stop-loss can be described as a magic weapon for short-term operation.
Stock Investment The best way to avoid the risk of stop, stop, then stop, no other way. Therefore, we should be set up to buy shares when a good bit and the implementation of stop-loss. Short-term operation of the stop bit can be located at about 5%, in the long-term investment, stop bits can be located at about 10%. Only learned of the investors is the flesh and stop sophisticated investors, but also the stock market will become a real winner.
