Tuesday, February 26, 2008

It is rational to invest in one of series: Focus attention total market value

At the time that I invest in every time with investor reasonableness, can most first ask so problem: It is what that you enter the purpose of the stock market? In general terms, investor friend can reply me to say that is to make money , is good, this is the reply of a reason, and I also believe that this is the original intention that general investor enters the stock market. However, the operation that often passes a time afterwards, many investors already throw this original intention brain after. Why so say , I lift a example, a price of investor early years in 27 Yuan that I know has bought deep development, after covering deeply, have germinatinged at the time that development falls deeply to the money of 10 Yuan to mend the idea of storehouse , I ask him that there is amount originally, it is 4000 that he says that has , is preparation mended somewhat? 200. Very obviously, this has lost reason, at this time he the motive of trade has not only been to have made money , is " is dignity war ", I discover this and am not special case, and it is very universal phenomenon. However, after investor loses reason for "dignity", nearly, metropolis falls into deeper mire. Therefore we think that reason is first as making investment to walk , are to insist the principle of " make money is the most basic purpose " rationally. Certainly, friend fund is solid, pure to entertain to while away the time to enter the stock market, that is another matter, not in our discussion scope. It is good , is second problem then: Do you think how to have just gained money finally in the stock market? Many investors say with me is " 5 yuan has bought 7 yuan sell ", I tell him, this not whole as. In fact " the increase of market value , have just gained money at last ". Such as your 200 thousand of market value of beginning of the year, midway has no access, the 300 thousand of year end of market value, do not consider fund cost, this is to have gained 100 thousand Yuan. Basis this principle, " low buy is high sell " is the stock market makes money the condition of " necessity but not ample ". It is again simple to lift example, stock quilt cover has lived , the market value of 300 thousand has become base storehouse, investor is willing to take 10 thousand Yuan always constantly low buy to sell high, but in fact even this 10 thousand Yuan, make brilliant result repeatedly, that base storehouse of 300 thousand is shrinking still, the money in investor small bag nature is still shrinking. So, low buy to sell success high settle can not make money. I know , a lot of investors have such similar experience , so, many investors talk about that the total profit and loss of market value are to hide always. 3th problem, you now should distressed do not come in the past still in attention? Rational answer is to pay attention to the future certainly, reason not says with me that all can identify , even if this is a matter of knowing easy trip disaster.

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