Beat yourself impulse control and the use of money Money Tips

Category: Money tips Release Date: 2006-03-16

Money is the stock market investor of all the most noble goals, if someone says to the stock market just to practice very hands, lose money to make money does not matter, that most of the mockery of their own investment mistakes. To make money as the ultimate goal, often become investors in the highest concentration of vision "focus", so it is easy to be artificially enlarge, then zoom in, zoom in before we can produce psychological bias, and then to determine the deviation.

A friend in the stock market early, they dare not rashly action on simulated operations. The 30 million yuan, the first has only spent 10,000 yuan operation. The results, kinda satisfied, he felt okay, so the overall combat. Actual results, left him disappointed, success is far less than the simulation, and failure is far greater than the simulation. Then a sigh: I'm feeling bad, bad luck. In fact, I'm feeling lucky indeed important, there are also, however, analog is better than actual combat, which is above all psychological factors come into play. Although the simulation time, and practical way to almost, but lose money when the mood quite different. Analog lose money, though uncomfortable, is still not heartache, the key is to sum up experience and the requirements of winning is less urgent; while combat is not the case, winning is particularly high demand, once losing money, mentality frustration, concentric interference will inevitably affect the judgments.

So in the real operation, the impulse to make money on at any time interfere with your judgments.

For example the current market, broader market fell sharply in every day, but every day the stock rose. In accordance with a rational approach, in such a plunge in the market halfway, if you do not grasp the larger, involving a special time to be careful, because once a mistake, perhaps within an hour you lost 5% or even more. The stock plunge may need to continue to fall, rose suddenly into the stock may fall. Do not understand the view, can not read the play, and only put in the broader market, depressed by a huge amount of time, or when a larger decline in total - for example, 12 major Yin Xian again before they can try hands-on. Because, after all, is the pattern in the broader market is still in a bull market. The characteristics of the bull market is up a very slow, and then drop rapidly. On the contrary, if the daily Suoliangyindie, then the value of participation also insignificant.

Recently, several friends of mine said to me: obviously a good stock rises, there are signs of institutional accumulation, but I dare not buy, do not buy he performed well; could not resist buying a result, died suddenly on the sets of This is how it?

I said, your money certainly is not. Large funds in the accumulation time to ask one side to absorb, stock prices are down, this could make the cost of their own decreasing. Thus, in such a decline, there are indeed some large funds to absorb. But your costs are low, one to eat Gebao, it would be different. For example you 11 yuan to eat in a particular stock, warehouse full of 300 thousand yuan, the cost price of 11 yuan or more; 30 million people capital, in the 11 yuan to eat into the three million yuan, and then decreased continuously to recruit, to 10 yuan has been absorbed by 2 / 3, and then rose to 11 yuan to absorb all the way above the average price of 10.5 yuan as a result, people have money, you are only keeping the capital. Therefore, the small funds and large funds in the accumulation of the operation is often the opposite direction: the smaller funds like the way up to absorb, because I did not know to drop down to where. Understand the direction, courageous, and to absorb; large capital Otherwise, the current round Quotes of the mainstream funds in the hands of the first half of 2003 until the end of the year, began to launch market, and launched the Quotes of the way, they are still in the constant accumulation, and this is big money. The tens of millions of middle-financing, then enjoy the stock show undervalued, the main funds have been quietly absorbed in the time, followed by absorption, so to save time, offer quick and tough to make money.

The question now is, whether it is moderate funds, or small money, there are two issues need special attention: First, take time. If you start to absorb the initial adjustment, the price obviously too high, though the bull market, the cost factor is also to be special consideration. Moreover, the risk at any time should be first taken seriously? Failure to adjust the momentum, and you buy, even if there is the risk, they are not substantial. Similarly, the key is to control the urge to make money. Do not have heard of a favorable stock is good, ignoring the broader market weakness, just want the money, they rushed to go. Even if you do not buy, stock up, and do not have to regret it, the main consideration the probability of control risk. Rational desire to make money to use the reins to fetter, could not do without it, but not flooding.

On the contrary, we can use this human weakness to make money in the mass are prone to impulse, we consider the appropriate lighten up or quit - at the top of each tape to the stage when all the mass of the most frenzied looting when the disc; in at large has been panic selling, we can pick up a little since the low - the bottom of each tape to the stage, when precisely the time when a big buyer of hands.