Four Levels Of Investment In Stock Market

One is the level of philosophy.

These investors have been steeped in for a long time.

The two is fundamental analysis.

These investors believe that without investigation, they would not have the right to speak. They would go through the mountains and rivers to investigate and study listed companies. They would like to dig out objective information in the confused information and noise.

They analyze from macro economy to industrial policy, from industry cycle to company management. From the comparison of historical development and reality, we try to find out "undervalued" companies from the comparison of International Valuation and domestic performance growth.

At present, fundamental analysts are often linked to "value investing" and become the main benchmarks and slogans for institutional investors to invest.

But the problem is that the information that investors grasp is often historical information, which determines the future development information of the company is often the insider information, and researchers can not grasp it.

Therefore, when the fundamental analysis becomes fashionable, when the investment group takes the fundamental analysis as the leading factor, the value bubble or the overall judgment error may occur. The reason is that the fundamental analysis is based on the history, and often adopts the "linear" one-way extrapolation preview method, without considering the complicated market game.

The three is investment in technology.

At present, most of the technology analysis is imported technology, sometimes it is correct, but investors may find that, whether RSI, KDJ or other indicators, often the index is high, the market continues to rise, the index is low, the market will continue to go down, that is, the so-called "index failure" phenomenon.

"Failure of indicators" often occurs when the market is rising or falling, so the failure of indicators is the eternal pain of technology investors.

The failure of indicators is that the structure of technical indicators can not contain complicated information.

Investors can only adopt some key technical data and parameters, so they can not include natural cycle, time cycle, emotional cycle, and power structure change cycle. If some key parameters are lost, failure of indicators will occur.

The four is that there is no principle, floating with the wind.

These investors may be loyal viewers of public media such as television. They often abandon their rationality by group psychology.

A large number of these investors, they float with the market trend, often change their position, once these investors form a group, often will form a group of popular trend, thus forming a market power, these market forces are changeable, often the linear single thinking investors confused, become the main force to help rise or fall.

Once the wind floats the market forces, even the basic investors and technical investors will often abandon their original principles and join the floats' camp, eventually forming the "floating power" of the market.

Therefore, if we simply analyze the rational combination of international capital, state capital and institutional capital and ignore the direction and consequences of the role of non-governmental groups, we will find that the stock market may be as "uncertain" as quantum mechanics.

Although different investment levels may result in different investment consequences, people with different investment styles will have to adapt to different stages of the market if they want to win the market.

Whether the investor is a natural investment master or an early floating investor, as long as the direction of investment is symmetrical with the prevailing market trend, that is, investment timing, investment industry, investment target and the market situation at that time "fit", they will get their own investment goals.

If we use the method of "harmony between man and nature", investors who are really successful are often the "city people in one" market.