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    Stay Away From The Temptation Of Insider News.

    2010/11/12 18:16:00 67

    Stock Investors

    Of course, it is insider information to invest in stocks. Of course, is it true? By the three movie stars of Hongkong, Sean Lau, Louis Koo and Daniel Wu, the movie "eavesdropping storm" has been shown.

    equity market

    Insider information about the thrilling.

    Stock speculation

    Tragedy.

    In the movie, everyone who thinks he has insider information can predict the trend of stocks and make big profits in the stock market. Finally, he can not escape from the tragic end.


    In fact, the real

    Investment

    The master has nothing to do with predicting the trend and mastering the inside information.

    Soros, the financial predator, admits that his success is totally out of proportion to his prediction ability; Buffett has publicly expressed no interest in any type of prediction.

    When dealing with internal information, the attitude of investment masters can be ignored.

    As the richest investor in the world, Buffett's favorite investment source is that everyone can get it free of charge, that is, the annual report of listed companies.

    Buffett once warned investors who like to rely on all kinds of so-called insider news to play stocks: "even if you have enough insider information and $1 million, you may go bankrupt in a year."


    It is a common problem for retail investors to listen to news, but investors must be aware that it is absolutely unrealistic to attempt to get rich overnight by insider information, and even if it is a fluke, it will be difficult to guarantee the final safety gains.

    Don't forget that there are such tragedies in the movie of the eavesdropping storm: a big aunt who bought shares with the eavesdropping elite. She bought a lot of money because she was blindly listening to the news. She didn't want to finally jump to death with the collapse of the stock price.

    Buffett's advice to investors who rely on insider information is not alarmist. It is a crystallization of the wisdom of the masters to remind and rescue investors who are addicted to the "dangerous drama".

    Investment must have a common sense, abandon the desire to get rich quickly, and earn a comfortable and clear income through long-term holding good quality stocks. That is the rational investment of ordinary investors.


    The lack of insider information means that long-term investment is the right way.

    There is no need to rack your brains to speculate on the stock market trend, and do not have to work hard to find out insider information. Investors only need to focus on the listed companies that they can understand and stick to it for a long time.

    As Buffett said, "you only need to be able to assess several companies within your capabilities.

    The size of your ability is not important. It is important that you have clear scope of your abilities.

    Of course, limited to time and energy, you may not be able to find outstanding stock of listed companies through their own analysis and research, then give them to the excellent fund of "expert financial management" to help you invest.

    What you need to do is to stay away from the temptation of insider news, and secure long-term funds.

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