Most trading is because of human greed and fear reached a certain level triggered, which is leading to more trading losses greater probability of the outcome inevitable.
Advantages of amateur investors
1. have the money, or be cast into sustainable
2. have time to spare, you can go study
3. There is no assessment of institutional investors, qualifying pressure
4. Like Buffett to invest. Value investing, long-term investment.
Difficult to find investors like Buffett as much as ten years to find a tenfold shares. Even surrounded by, you do not necessarily have such eye.
A true investor should forget short-term changes in stock prices, the main focus on the company's operating level. Even if your goal is to get capital to buy and sell price difference should also be 5 to 10 year cycles to plan your investment.
If you do not want to hold ten years, do not hold a minute.
Correlation between the share price and performance are also effective in the Chinese stock market. 0.5 of 5 years, 10 years of holding more than 0.8 degree of association.
The market is a voting machine short-term and long-term is the weighing device. Time is an excellent business friends, but mediocre ones enemies.
Enjoy the value of the investment to learn, practice. People crazy bull market, bear market people think.
Do not toss investment logic
1. buy stocks is to buy a business, buy shares. If cast himself as really from the heart of the company is their own business, but also to go and shift to shift the toss it?
2. at a reasonable price to buy long-term holding companies superstar
3. The market will eventually react intrinsic value of an outstanding business. In the short term the market may be stupid, ineffective, but in the long term, the market is smart and effective.
Investment should stand in the perspective of globalization, those with Chinese investment quintessence of traditional Chinese culture, traditional Chinese etiquette protection within the industry is the first, is the only medicine, wine them.
And China has the potential to create, is expected to the world oligopoly.
Business investment should have the following outstanding characteristics:
1) has a concession economy (core pricing, this is the best investment targets)
2) win in a fully competitive industry oligopoly (proved with their excellent strength, which is the second investment targets)
To be good at stock picking from their daily lives, their products or services should reach it in everyday life in general.
Investment Strategy:
Investment starting point and goal, be sure to put good, undervalued companies on. Must not be on the hands of the bull market tide all up.
Sell strategy:
1) ridiculously expensive 2) deteriorating fundamentals
Depending Bull and Bear dynamic adjustment of status to pyramid positions, in principle band.
investment risk:
Volatility is not a risk, even if the huge fluctuations, as adjusted 30%, 50% is not a risk.
The real risk comes from
1) permanent loss of principal
2) lack of rewards, such as underperformed bonds, term deposits, long-term inflation, the Shanghai and Shenzhen 300
Earnings forecasts:
And above "underperformed" On the contrary, higher than the benchmark index will be reported for a few points, reaching the level of investment excellence.