Category: Money tips Release Date: 2006-07-29
Bull market to capture market timing, five in each market has its own timing advantages, disadvantages, and different investors should be according to their characteristics and needs, to select the most suited to their timing.
The first time the market: a bear market last fall at the bottom of the market. The advantage it is possible to buy the stock at the lowest position to capture the bull market bottomed all the rise of a big rebound to obtain a theoretical maximum profit. The disadvantage is that: Xundi the game at risk. China's stock market had a rule at the bottom far below market estimates in the low, direct Xundi risky.
The second market timing: a calm mid-term intervention. The advantage is: the lowest price to buy the region are likely to earn the maximum profit. Relative to the previous one in terms of market timing, the bottom of the more obvious characteristics of the risk reduced somewhat. The disadvantage is that: the risk remains high. First, do not rule out the broad market correction after the possibility of another steep decline. Second, the market has not recognized as a big bull market, still a lot of variables.
The third market timing: a basing of a big rebound of the half-way advantage of the opportunity to intervene. Its advantages are: avoiding the Xundi risks, the relatively clear case of upward market, take a relatively larger to win. The disadvantage is that:
First, in the bottom to lead start-up of a big rebound when the intervention of uncertainty remains high, the characteristics of the bull market has not yet displayed. When their cattle are characterized by the early film more obvious, it may almost on top of a big rebound. Big City, will soon be entering phase adjustments.
Second, the operation is more complex. There are two goal. To capture a basing of a big rebound of the stock selection principle is to buy cheap, buy oversold (broad based). The great bull market to capture the historic section of the main l stock selection principle is to buy high-priced blue chip stocks. To pursue two different goals, leading to more complex operation, that is a big rebound to the top of the ship, and then to look for an opportunity convertible. Top fled a fatal weakness of all investors in the event (in fact, in most cases) failed to escape the top, even quilt, there may be forced to hold cap, lower into the big bull market, thus affecting their historic opportunity to grasp. There runs the risk of the suspect.
The fourth time the market: re-adjustment (re-bottom) phase into the market. It is noteworthy that, 96 years a major turning point cut in interest rates due to a continuous positive, and then bottom stages sideways manner. This might not be a major positive turning point, and even full circulation of the introduction of a number of bad conduct, it was down, or would be much better.
The market timing advantages are: 1, the market gestation period has been completed, the turn of the trend is fairly clear, the intervention decision-making based on the basic facts needed to have (after the first, quantitative qualitative change). Enter the market with less risk.
2, while the single goal is to capture the big bull market first ascending segment.
3, the new bull market of the new features of an initial exposure, the more targeted market, operating a higher success rate. Disadvantages are: loss of a basing of a big rebound this wave of large market, at the expense of some of the opportunity to gain more certainty, a higher success rate.
The fifth market timing: after the official launching of the bull market (that is the great city out of the first big wave after wave 1) re-enter the market. Its advantages: the great bull market has become a fact, there is no uncertainty factor. Capture less than the risk of the bull market is basically no. The disadvantage is that:
1, missed a lot of opportunities, especially shortly after the stock market, it may face a higher level of short-term adjustments, after all, the previous increase did too.
2, missed the greatest increases in high-priced blue chip stocks timing. This has led to these investors were forced to buy cheap stocks to save, garbage stocks. But these people have to wait until the stock market after the bull market entirely sure that is a very cautious person, asking them to buy junk stocks clearly goes against their personality. The blue-chip stocks due to the early rise is too large, and into a fairly long period of adjustment.
3, missed a considerable number of opportunities have brought new problems: Wei Gao's disease.
5 pros and cons of each market timing, the most important thing is to choose their own timing. In general, the first and second market timing, risk is large, there is no right at the bottom of a deep study had better not to use. Retail investors recommend choosing the third time to enter the market, as long as attention to a basing of a big rebound at the top to escape roof convertible can be. For the more cautious investors, or general fund investors more cautious, it is recommended that the fourth option timing. For the stock market usually does not care about others may wish to choose the fifth timing.
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