stock market risk, the market should be cautious. I found that the cognition of high risk by most investors in the stock market, but investors are often not noticed, their investment behavior and psychology, their losses could lead to losses greater than other risk factors. Greed, in the bull market in bear markets fear those investors generally fatal weakness, be thoroughly reflected in the stock market.
one psychological problems: only sharing the proceeds cannot take risks. Get carried away when the stock market float red all the way, blindly follow up; footed chaos when the stock market continued to decline, weaker risk tolerance. Strategy: have specific investment objectives. In fact, many investors lack of clear investment objective, most investment in &ldquo I want to earn more money ” this very vague criteria, even when making investment decisions may only consider themselves to this layer. Investment objective must be to develop clear, break down to a specific time, to achieve specific income, hoping to meet the specific needs of, and so on. Clear investment objective can bring many benefits. For example, always thinking of your investment goals, we can help you focus on the long-term performance of the investment and main aspects, monitoring investment process, determine whether your behaviour and investment objectives are consistent. In addition, have a clear and reasonable investment target, investors will not be “ herding ” traction and interest on, ignoring the risks; no “ cognitive imbalances ” and overestimate their past investment performance, leading to next make errors of judgement, because there are always specific targets in warning of his own.
psychological problems II: fear of principal losses but would like to make a lot of money. Everyone knows, any investment risk and return is proportional to, want high yields natural to take high risks, and select low-risk investments in or near-zero risk, do not have to expect a high return. In this regard, I propose to shareholders before the investment, first have a clear understanding of their assets. If it is a reserve fund in the short term, that there are sound investments, to ensure that no losses. And if you can adhere to long-term investment, and if you can bear certain percentage losses, then select stock market would be all. Select benefits, to reduce the psychological pressure, preventing go with the feeling of fear. According to their own risk tolerance, select a different ratio of investment or investment, is an important step to overcome human greed. In addition, may select equities on a unit and a &ldquo overall funding; departure yield ”, for example, 10% and so on, set higher natural greater uncertainty, the risk is greater, when the marginal is reached should be strictly in accordance with the formulation of investment programmes to actions at first, avoiding investment mistakes caused by greater risk. In addition, if the amount of funds into the stock market is large, then investors may wish to make a partition, such as 40% 20% short of long-term investment, flexible operation, 40%, such a configuration would be an investment discipline.
psychological problems with three: understand the value of investments and yet inevitably crowd. I found that many new investors, there are the multitude-followed mentality, is in its own indecisive follow others when walking, I buy you buy, you sell I sell. This may be associated with personality on the one hand, on the other hand mainly because of the lack of an independent opinion. But in the securities market, people are not necessarily potential audience, but contradict theories, when everyone is fighting over buying time, gains may be to top, when we are fighting over cut meat when declines may be in the end, so the herd often is losing money. Strategy: controlling the investment environment, avoid blind faith. If you want to lose weight, but home refrigerator filled with coke and fries, can imagine your weight-loss scheme can persist for long. The same logic, if you don't want to frequent operations, required every day, but when you open the computer to see kxiantu, one time drilling into the stock Forum, all sorts of information to confuse the calm water you can do it? Therefore, investments to overcome psychological problems, experts suggest that you should control your investment environment. Once the investor has identified investment objectives, unless essential change in shares held by fundamentals, completely true and false to ignore market rumours of difficile. Investors can view only once a week the stock, which can inhibit investments required for mental illness in; you can deal only once a month, this helped investors overcome because “ overconfidence ” frequent transactions.
mental mistakes IV: intends to long-term investment but frequent trading. Frequent buying and selling, apart from to contribution of securities dealers large fees, also contributed to the stock market a lot of bubbles, was already full of speculation by the market become more speculative. Early into the stock market one should understand, really make money in the stock market, in addition to technical experts, most of them are patience very well, and to low buy firmly holding their bullish stock person. Strategy: building a tight system trading patterns. In fact, the reason why retail investors frequently buy and sell stocks, in addition to investment mentality impetuous, even more important is the absence of a scientific system. Traders know fundamental analysis and technical analysis of two major systems, concerned about the internal factors affecting market movements of the former, which study the effects of specific transactions by market participants. As an individual investor, in terms of fundamentals get practical results and analysis of information, will never be able to meet the standards of large organizations, so doing a technology to send, I believe that is the best choice for individual investors.
