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Improve Profitability &Nbsp; Follow The 7 Principles Of Effective Stock Purchase.

2010/12/29 13:30:00 42

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many

Investment

Buyer buying

shares

Very casual.

As long as there are commentators who recommend, or there are good rumors, someone will buy them.

For these friends, buying stocks is more random than buying vegetables, and picking up three for picking up four.

Random results can be imagined, most of them are locked up after buying, and then take home to sleep, waiting for the solution.

If we can grasp some effective principles when buying stocks and strictly abide by them, we can greatly reduce mistakes and increase profits.

Here are some effective buying principles.

1. trend principle

Before preparing to buy stocks, we should first have a clear judgement on the trend of the market.

Generally speaking, most stocks follow.

Market

The trend is running.

When the market is in an upward trend, buying stocks is easier to make profits, while buying at the top is like taking advantage of the tiger's mouth.

It is also necessary to formulate investment strategies according to their own financial strength, which is to prepare for investment in the long term or short-term speculation, so as to clarify their operational actions and achieve targeted goals.

The selected stocks should also be a strong stock in an upward trend.

2. batching principle

In the absence of absolute certainty, investors can buy in batches and buy separately, which greatly reduces the risk of buying.

But there are not too many kinds of scattered buying stocks, generally within 5.

In addition, buying in batches should be implemented in a planned way according to their investment strategies and funds.

3. bottom principle

The best time to buy stocks in the middle and long term should be at the bottom area or at the beginning of the stock price breaking through the bottom. It should be said that this is the time when the risk is minimum.

Although the short-term operation has opportunities every day, we should also take into account the changes in the short term and short-term trend as far as possible.

4. risk principle

The stock market is a high risk and high return investment place.

It can be said that the risks in the stock market are everywhere, and there is no way to avoid them completely.

As investors, they should always be risk conscious and minimize risks as far as possible. The timing of buying stocks is the first step and important step in controlling risks.

When buying stocks, in addition to considering the trend of the market, we should also focus on whether the stocks to be bought are larger or larger, where are the upper and lower levels of support and what are the reasons for buying? What should we do if we buy and sell if we do not go up and down? And so on, these factors should have a clear understanding when buying stocks, and we can reduce risks as far as possible.

5. strong principle

"Strong Heng Qiang, weak and constant weak" is an important rule in stock investment market.

This rule will guide us when buying stocks.

In accordance with this principle, we should take more part in the strong market and invest less or do not invest in the weak market. We should buy strong stocks and leading stocks at the same plate or at the same price or have chosen to buy stocks, rather than those of weak stocks or those who think they will make up and low prices.

6. principles of subject matter

To gain more profits in the stock market, especially in a relatively short period of time, it is very important to pay attention to the hype of market themes and the pformation of subjects.

Although various themes are emerging and changing rapidly, they still have relative stability and certain regularity, so long as they are able to grasp them properly, they will have substantial returns.

When we buy stocks, we should buy stocks with selected subjects and abandon stocks without subjects, and we should distinguish between mainstream and short term subjects.

In addition, some subjects are often fried often new, while some subject matter is a cloud of smoke, stir fry once, its hype time is short, and later it is difficult to attract.

7. stop loss principle

When buying stocks, investors think they will go up and buy.

But what if buying is not going up as expected, but falling? What if we just wait for the solution is quite passive, not only will we seize the opportunity to lose other profit opportunities, but what is more important is that if we hang on to our baggage, we will also affect the mentality of the future.

Instead of passive holding, it is better to take the initiative to stop the loss, temporarily recognize the loss out of the wait-and-see.

This is even more true for short term operation. Stop loss can be regarded as a magic weapon for short-term operation.

The best way to avoid risks is to stop losses, stop losses and stop losses.

Therefore, when we buy stocks, we should set up a stop loss position and resolutely implement it.

The short line operation stop loss location can be set at about 5%, and the middle and long line investment stop position can be set at about 10%.

Only investors who have learned to cut meat and stop losses are mature investors and will become the real winners of the stock market.