Investors – the pursuit of the doctrine of the mean, to avoid wayward, investors need to cultivate a quality, awe-inspiring market, which involves whether we really understand the characteristics of the market, really understand the financial transaction connotation.
Adhere to in-depth study
“Insight into the economic trend, comprehend business rules, waiting for market opportunities;” These words are intended to express the theoretical background of investors and business practices, and follow the principles of the transaction. As a fundamental investor, to have considerable economic knowledge and business thinking ability. Investment not only to have a business logic, but also to adapt to the characteristics of financial markets, concerned about the market rhythm, patiently waiting for market opportunities.
Stressed the principal security
“In response to changes in the market, trade-off between profit and loss, strict risk control;” These words are to emphasize the transaction on the mentality and experience requirements. Quotes should not only look at the big trend, but also to cope with fluctuations in the change, to maintain market sensitivity, grasp profit and loss advance and retreat. Financial markets can not be aggressive, survival is the first, making money is the second, we must build a sound security strategy. The financial properties of the market, such as the flock effect, capital stir fry, emotional chase sell down. At the same time more than the strength of the asymmetry, a market trend once formed, not one or two days to end, as described by Soros reflexive theory, the market will repeatedly self-strengthening. After the transaction, if the direction of the right to make the profits as far as possible, if the reverse volatility will stop and leave, although the fundamentals have been reasonable, not equal to the timing of the transaction has arrived.
Appropriate income is expected
“Humanity is optimistic about aggressive, and the market is chaotic, rational treatment of income expectations;” This is a few words to warn in the capital management and risk control to overcome optimism, in particular, be alert only to the so-called opportunities, resulting in the amount of money Too big to enter the market too early. Because of human subjective stubbornness and thinking inertia, easy to think of paralysis and blind optimism, and the market is complex and rapid changes, so the amount of money should be small is small, short positions should be short and short, the funds should leave the field. Enlarge the psychological expectations, the pursuit of profiteering, do not want to eat a small loss often suffer losses. Can not be passive beaten dominated by people, I feel not immediately ran, in time to reduce the principal loss, the so-called “cut off the loss!” Only alive, behind the opportunity.
Experience investment skills
“Shopping malls such as the battlefield, businessman business, cover soldiers home flow.” This is a few words to describe the market as a battlefield, a professional investor, is a businessman, like a battlefield commander. Traders do not have a comprehensive quality and excellent quality, we must establish a careful thinking, must be flexible, must understand the responsibility to play. Compared to the physical business process, futures are highly compressed in time, although the market price must return to commercial value, but the process is full of twists and turns and changes, may be an instant to face huge changes in profit and loss. So the futures need to pay attention to a matrix method, according to a routine to engage, can not be a mess, capricious gamble. In the use of funds must be based on the premise of security in the risk control to make early plans, in case of changes in the situation need to act decisively, so that funds leave the security, which requires timely wet storage or hedging or leave. At the same time trading not only need to be careful, but also need courage, when the market will be decisive after the break admission, not only to “see open” but also to “get in”, the so-called greed me fear, others fear me greed.
Trading will inevitably experience setbacks, but also need to learn and improve the mistakes.