Investment to avoid herding
Mistakes: Investing is not assertive, blindly listening to other people, follow other people’s investment behavior, leading to chose not to for their own investment or investment products. “You say, I continue to deposit banking, or buying stocks that?” This year in May, took just due to regular savings passbook, Ms. Zhang Xiao Li asked, with great expectations. Many people around to see a lot of money through the stock, Ms. Zhang is also ready to make up the heart. Know nothing about the very fact that the decision on the stock to Alan for help, from the account to the stock selection was made by Xiao Li decide. However, see Xiao Li to help choose their own stock price down for five days, Ms. Zhang blindsided.
Scene change in a city newspaper in Shanghai. “Wang, You see this market, not the flesh I leave it?” Fell on July 29 this year after 小崔 eager to own director “advisory.” “Well, I see you for the time being, or not move, look at the market outlook, we’ll talk.” Wang gives ambiguous attitude. It turned around in the ten days before, 小崔 is followed Wang to buy that stock, but this time do not know if this out, could not decide. August 17, watch that stock has been down, tape is not much improvement, 小崔 finally decided to throw away the stop. Deputy Director Wang said she was told about the results did not expect Deputy Director Wang said he had gone last week. “When you throw me how not to say it?!” 小崔 some “very hurt” when running the day if the director also called on her, then the loss of thousands of dollars can be less. “Then I can not Say. Our good amount of money as different operating styles, and I direct that tell you to throw away the fear of the event and later rose, you do not have to blame me, so bad for a clear answer Yeah. “Director Wang also some grievances. Investment is not determined and is very dangerous Zhang aunt and 小崔 experience, almost every day with us. “Listen to other people recommend” and “go with the flow” is a common behavior in the stock market two types of phenomena.
Many new users have yet to master the basic knowledge to eager investors start investing and get better returns around a number of investors, professional securities have a “cult mentality”, when making investment decisions leading to them have appeared only on the purchase of a hearing s recommendation Most people only buy the stock or to follow the situation of the same stocks. And even some of the old shareholders, there will be herd mentality, or gossip as an investment benchmark, the results encountered fallen sharply. For example, in 2007, continued to rally triggered the “wealth effect”, more and more individuals join the ranks of securities investment.
Today, the securities company’s business hall, we see the most is still the white-haired elderly. They will be hard for many years all the money accumulated in pension investments in the stock market, did not risk the move. In fact, a relatively mature compared to the old shareholders and new investors enter the market or older and investors, the lack of security investment often clear and comprehensive understanding, lack of knowledge is relatively easy to blind, irrational conduct investment activities. Meanwhile, most of the domestic short-term individual stock investors are always happy to frequent operation, constantly chase the sell into corrections, hoping to gain access to post, the result is “buy a down one, threw a rose a” bear market or bull market, whether The total ride is always allowed to feel the beat of the market, ultimately often miss the opportunity, but also to pay a lot of “tolls” (transaction costs).
Just like to listen to other people to buy stock news, even to buy funds, domestic investors also like the “herd phenomenon.” For example, in the spring of 2006, the occasion of gratifying stock market gains, many funds to achieve high absolute returns, so people would not rush into mass action to the pursuit of funds, similar to the broad issue of the Fund’s super-size is an even greater break another break. As everyone knows, the fund is very different between the first half of the fund rising more does not mean that the way the future will be high, but a lot of money into the same only funds the operation of the fund will increase a lot more difficult, not easy to make this only the good operation of the Fund. Look back, even the risk of investment in 2000, 2005, universal insurance, investment linked life insurance in 2007, advocated the parties under these two categories of products in the same year became very “popular” financial products, many of the residents are getting into. As everyone knows, this class of insurance, financial terms of the complexity, mystery much, operations and traditional insurance completely different profile of people do not know to buy such products, really, a bit dangerous!
Have the knowledge to self-investment
These scenes are so that we have feelings, domestic individual investors to finance and investment is still quite blindly. One-sided pursuit of “get rich quick” one-sided pursuit of “short high-speed” is a common problem with many individual investors. But we must understand that any investment behavior are certain risks, know their only other investors in, understand the market’s Jichu on the investment Juece Zuochu suit their own is the right itself responsible. Blindly follow the views of any person or “herd” behavior, not only can not reduce the investment risk, more easily to their greater loss of investment. Easy to listen to the views of others, blindly follow the market hot, but also investors in its sole discretion, decision-making lack of confidence, and investment in order to establish their own decision-making ability on self-confidence, investors must learn and master the relevant stocks, funds, bonds and insurance, finance and investment knowledge. At the same time, usually have to pay more attention to the major international and domestic political and economic events, and more, and to communicate with friends around a number of investment techniques (rather than direct investment following the action of others), learning and absorbing other people some of the lessons learned, so that after filtration I used to create for their own investment style and asset allocation for their own situation and risk tolerance, investment products, and not go blind comparisons with others. Finally, the “investment to make their own decisions at their own risk, since the revenue sharing”, the three “independent” we have to remember the simplicity. If you follow other people, listening to other people’s messages to the investment loss was also not blame others.
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Tags: asset allocation, business, buying stocks, investment behavior, investment products, investments, investors, market outlook, money, stock market, stock selection