How To Avoid Being Stuck In The Stock Market For A Long Time?

Since the 3186.72 high last November 11th, A

In such a market, regardless of the old stock investors, new

Now China's stock market, old stock investors are shrinking, new investors go forward bravely.

Why are new shareholders so bold?

It is not difficult to explain this point, nor do we need to use the principles such as the SFC risk warning. A simple story can be clearly understood.

Treasure hunt model

It is said that a cave has found treasures hidden by robbers. These treasures have been buried in every corner of the cave. Several bold villagers have gone to dig, and indeed they have dug pearls, diamonds and gold.

So the other villagers could not sit still, but many people did not dare to dig at this time, because perhaps the robber came back one day and was caught by a robber, but there was no fruit to eat.

But as time went on, more and more villagers were digging into the treasure. Many people even built houses and married their wives.

The rest of us could not bear it any longer. They thought that the two dogs next door were a fool. They even dug up such a big lump of gold. I planted them for a few years.

So everyone ran to the hole and dug it up.

Most of these people have never been caught by robbers. They are the most courageous. Those who have been caught by robbers are cowardly because of their hardships.

Digging and digging, some smart villagers found that the more advantageous excavating position was occupied earlier, and it was impossible for the fellow to move away. So he came up with a bad idea.

As he shouted, "the robbers came back", he ran away like mad. When others heard this, they were all frightened and threw away all the tools and fled home.

The smart people did not escape. They hid on the edge of the cave and saw everyone fled. Then they went back to pick up the good tools that others had thrown away, occupied the best digging position and began to dig.

In the stock market, this is called the "seismic warehouse callback", which can shake out the good chips in the hands of the coward.

Those fleeing villagers immediately found themselves fooled. They could not stop regretting and hurried back, but good positions had been occupied by others, and they could only pick some bad seats.

All of a sudden, other villagers' minds were enlightened, and they took turns to play the game of "Robbers coming."

Some of the villager villagers are fooled every time, and the last place they occupy is not so bad that the baby has been dug up.

After so many times, the courage of all the timid villagers grew up, because he found that cowardice could only starve to death.

At that time, the robbers really came back, and a few of them were very good at seeing. After seeing the robbers, they stole away. Some of them had a good conscience. Before they left, they shouted, "robbers are coming back!" but no one believed this time. Everyone thought this was just a coward.

In this way, they missed the last opportunity to escape and wait for them. What will happen besides robbers?

The stock composite index is actually the sum of the value of the treasure. Some people claim that the robber will come back at a certain point (assuming 8000 points). This is just a bunch of nonsense. It doesn't matter when the robbers come back and how many treasures you have dug up.

Although you will find that the robber came back at some index point afterwards, you can find ten thousand people, and each person will predict that there will always be some tests, but what can it prove?

Having said so much, I only want to prove that when a robber really returns, most people can't escape.

New shareholder decision theory

In the current Chinese stock market, the number of new investors has great influence on share prices.

When the number of new investors increased again, that is, when the Chinese stock market regain its light.

Here is a basic principle: new investors can not tolerate long short positions, and will soon invest all the funds soon after they open their accounts.

The key turning point was in May 2006, when the number of new investors opened up to 680 thousand this month, which has never happened before, which indicates that 2006 is a different year.

In May 2006, the Shanghai composite index exceeded 1600 points, equivalent to a 60% rise from the bottom.

The stock index has been consolidates for several months, mainly because investors who had been deeply locked up had been selling away.

But the bull market trend has been basically determined.

In December 2006, the number of new accounts increased explosively, reaching 1 million 630 thousand, which was 1 million more than in May. The Shanghai Composite Index has risen to a record 27% this month, and this record has not been surpassed.

Since then, the market has entered a process of positive feedback and amplification. Because the number of people who open accounts is large and the amount of money it brings, the index has risen rapidly. With the exponential rise, it has attracted more people to bring money into the market, so the unprecedented bull market was born.

If we have to point out what causes the bull market,

As time went on in 2007, the number of new accounts opened up continuously.

The new stock investors have a biggest problem, either too much or too empty, so when it is skyrocketing, they are also prone to plummeting.