Thursday, October 1, 2009

How to choose long-term investment

Long-term investments, time is not strictly defined. Investors will not sell in the short term holdings, Under normal circumstances, the holders of more than one year should be regarded as a long (line) phase investment, but there are a lot of shareholders is almost 10 years, and even a few years to hold the same stocks, which is the long-term investment. Long-term, in most cases is based on the fundamentals, or looking to buy after the big companies and then led the development of the stock prices rise. In general, a company's fundamentals are very difficult to obvious changes occur within a few months, so If the idea of getting involved in this stock, usually takes more than a year, commonly known as long-term investment!

How to choose long-term investment and short-term investments

Many investors engaged in trading when there are no investment preferences of the points, much less the style of their own expertise, whatever that means, as long as can make money on the line, which in itself shows the lack of such investors, the stock market in the "trick." More than that was profitable in the short term and, subject to cover and made it into a long line of petty profits earned by the former, the latter can not always compensate for the countless losses. Short-term and long-term are no good or bad, as long as to adapt to the line, as long as the good that is. There is risk control measures under the premise of short-term add up, in a Quotes in excess returns can be achieved. In the selection of the stock, under the premise they will obtain a very stable long-term high-yield. Some people figuratively speaking, short-term traders as an artist, because no matter Quotes Change, he (she) always need to maintain the enthusiasm for Quotes, and always in the state of tension and excitement. The long-term traders is an engineer, he (she) need to control the entire process and revision, and the need to endure a reasonable period of market adjustment and abnormal period of wide shocks, as well as the market downturn of the loneliness and solitude. Therefore, the former need is a passion, which is needed is rational. Quotes in a time of a bureau, short-term investors often the envy of long-term investors made huge gains in the face at the bottom had been bought and sold their own has now been doubled, and even several-fold the stock are often begun to regret it, or it feels as a barbarians. However, the short-term investors, how to understand the long-term investors during this period were paid and suffering. Long-term investment (1) invest in long-term investors to put up with the market fluctuations during the "elevator" and torture, to put up with the original book has been made in profits from short-term reduction in pain; (2) The long-term investors having a running process, we need to give up many other very sure of themselves as investment opportunities; had to endure the temptation of other stocks daily limit turns with the stimulation of pain. (3) long-term investors must always be concerned about both types of market information, trends, and it must not move a long time by resistance. A year or a few years only a few of the several trading opportunities, but always suffers from a variety of market noise. (4) local time, a time when other investors to enjoy the fun profitable when the long-term investors may have to undergo periodic loss of combat, this torture enough to make many long-term investment collapse, come to naught. (5) in the market frenzy of the period of extreme depression or long-term investors take a long time kept its cool and open-minded mood, as well as objective and rational thinking, and the need to stand by the established investment discipline.