On the weakness of human nature and stock operations (Reprinted)

 Greed, fear, blind obedience, luck is a weakness common to human nature. These vulnerabilities exist in more or less the same time every investor who has seriously affected the level of income investors. Knowledge can be added through learning, experience, practical and reliable accumulation improving the quality of the psychological aspects of life can only beat honed through to completion.
1. of greed. We have seen the let me go, I can satisfy all your requirements. Fisherman's Woman greedy, to costumes, to the house, to the palace when the Queen, her goldfish are met. But the wife finally went so far as to make her servant goldfish, goldfish shook his tail had to swim to sea, while the fisherman and his wife went back to her days of poverty. stock market saying: what people can make money, only the greedy people to make money. excessive greed will make you of the money threw to, because there is no stock market can only rise and not fall. Laosong will often encounter such an investor, they are not decided to trade the market strength, but according to buy their own house and car and other needs of target funds to be traded. There is not justified under the premise of continuous improvement in the stated objectives.
treatment greedy need to cultivate quiet calm of mind, a more rational analysis of real market need. rationally consider the risks of high yield under the premise pursue to is the most reasonable, with the subjective imagination blindly raise the price tag, only to return to the same place as the wife of a fisherman.
2. of fear. When the human face will always fear the unknown. the characteristics of the stock market is from simple repetition, yet also seemed like a regular irregular, therefore, is bound to become investors fear the most can not abandon the shadow of the heart. shareholding process, see the stock up a little bit, afraid of fall any further back, want to sell, they worry continue to increase their Ta; market down, and do not want to sell, fear of falling, sell it, afraid of backlash. Left are afraid, too afraid of the right, much suffering. For the short-term operation of the people, especially so because in theory short-term fluctuations is not expected.
3. of blind obedience. a man lost in determining the direction of the most easily go along, blindly follow the views of others to decision-making. the face of market changes, careful and comprehensive understanding of the market can not separate people think the stock can not do a good job. Laosong found that most people listening to lectures look at stock analysts, is not focused on the investment thinking and logical thinking, but recommended to wait for the stock. heard immediately buy it, if trap that they immediately liquidated. and these stocks likely rose midline. blindly follow a lot of people, so there are
4. On the chance. knowingly is a small probability event, but hope that can happen, which is unfriendly to chance. In the equities operation, the chances of retail is often used by the main body. stocks pulled high , down a long time the main Yinxian often begin shipping to retail, although their hearts that the broader market, stocks are looking great, but escaped without a firm, most people are looking forward to a rebound in stock prices did not drop before the height, the result is often The deeper the more sets.
to Kang Daer (000048), for example, in May 2000 its share price has Powei down, mediocre performance of this unit, when the price was as high as 40 yuan, the risk is extremely high. If you want to wait and then bounce shipments may be dropped to 27 yuan for first-line, such as wishful thinking that luck again will be decisive and not sell out the rally, the next will face 10 limit, falling to 8 per share a great loss.
Third, the simple and efficient trading practices
as long as the election of a trading opportunity, any stock can make you money. Therefore, to become investors in the stock market timing operation is very critical. the choice of buying and selling point, people with technical indicators. Laosong to studying and learning through a variety of technical indicators, only to find every technical indicators are not perfect, are flawed. and want to combine all these advantages, to weed out the shortcomings of the idea is not possible. After ten years of practical application of Lao Song eventually found: One of the most simple indicator - 30-day moving average is actually the most efficient implementation of the most convenient. as long as the master of this index, make sure your earnings far more than the purchase of any one fund returns. as follows:
1 tape or whether it is stocks, setting a 30-day moving average, K line through the buying, holding to the K line has been sold through . Here, there have been many details to further improve profitability, but a complex it is easy to confusion, just give up.