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The Most Basic Skills For Successful Investors

2011/1/13 16:20:00 60

Investor

After entering the market, according to their understanding of the stock market and the choice of buying and selling methods, they can be roughly divided into several categories: 1, paction type; 2, vote type; 3, value type; 4, arbitrage type.

Transactional investors operate most frequently to earn short-term profits.

equity market

People at work.

The mode they adopt is to track strong mode, short term or ultra short term operation.

Speculative

Investors?

The frequency of operation is moderate.

Band operation is often adopted, mainly based on technical model operation.

Value investors have the lowest operating frequency, mainly based on fundamental analysis, and the operating bands tend to exceed one year. The frequency of arbitrage investors is in and out of market risk seeking opportunities. The overall operation frequency is similar to that of speculators, but the band profit is smaller and the security is higher.

Some investors may have experienced the success of value investing and technological analysis and speculation in 2007, and then suffered huge losses in 2008. They believe that there is no real investment method in the market, but they have lost confidence in the stock market. However, the author believes that this is not the wrong way of operation, but that the investors have made various mistakes in their application.

For example, when trading stocks are slumping without strong stocks, they should operate blindly. Shareholders of the models are heavily engaged in the market when the band is down. Value investors are still crazy about stock valueoverestimation. Arbitrage shareholders are still buying when the arbitrage conditions are inadequate.

Therefore, these investors have made various mistakes in their investments and failed.

There are many types of investors in the US stock market, such as Victor sp. Langdi, known as traders, Soros, famous for speculators, Buffett, famous for value investing, long term investment funds known for arbitrage trading, and so on. But why are most of our shareholders unsuccessful? I believe that if investors can do the following, they will have the opportunity to become successful shareholders: first, we must identify which type of investors they belong to, secondly, we must establish an effective operating system that is consistent with their own practice and effective operation. Then, when the stock market changes dramatically, we can adapt ourselves to the market adjustment, and finally, we must overcome emotional blind pactions with rational trading. As far as the author's experience is concerned, any type of stockholder can become a successful stock.