The ten Chinese bane of investment

Chinese investment ten bane with financial products rich, market competition has become increasingly fierce, many people blindly pursue high returns, while ignoring a lot of risk. Then, an ordinary working class how to avoid the investment into the bane and misunderstanding? Figure up when more money, when not losing money, can be described as the aspirations of all investors and the ultimate desire to dream of a good investment level. With the wealth of financial products, market competition is becoming increasingly fierce, in the premise of the choice to increase, many people blindly pursue high returns, while ignoring a lot of risks. Then, an ordinary working class how to avoid the investment into the bane of misunderstanding and. One of the China stock speculation: the bane of the stock market in the last 13 months roller coaster rides, shows a snowball effect of this unique group of investors "behavior". The Shanghai Composite Index in the last 1 years of soaring 150%, but in the three week of trading a little short time plunged 30%. When the market rose all the way, the country has been leading the ranks of investors all the way forward, the government hopes to increase the valuation of Chinese stocks. Higher stock prices also help Chinese state-owned companies to reduce their debt levels, because they can sell their holdings of shares to repay the loan. The government’s propaganda machine for stock market strength, at the same time, the official also relaxed the rules of the stock market, allowing investors to buy stocks financing easier. These measures not only stimulate the small investors lack experience demand, also stimulated speculation large demand. Bull market in the market, the pig can fly in the air, which often makes people illusion, it seems that the stock market has a huge pie, to go to the end of the. The stock market can only trade is very easy, but to make a profit, especially sustained profitability is easier said than done. In the stock market, you can not see the opponent, but opponents everywhere, waiting for you to make mistakes. Investors to enter the stock market, the fundamental purpose is to profit, of course, to increase the value of wealth. But the stock market has 7 losses, 2 draws and 1 wins, the law, so many people lose money, can not say that this Law dictates. Why do so many investors do not understand or do not believe this rule? There are many reasons, the important aspect is the psychological instinct of the errors in unconsciously affect people’s behavior. And the illusion of the stock market has strengthened and enlarged the behavior deviation. With the stock market crash, investors need to face more trouble now. They must come up with more cash or other assets to meet margin calls, because their loans are guaranteed by the value of their holdings to do, but the market slump will greatly reduce the value of the collateral. At the same time, the government has introduced an encouraging measure to support the stock index. At the beginning of July, the stock market crash soon, Shanghai and Shenzhen stock exchange 2873 listed companies have nearly half of the company suspended, but this proportion was reduced to 31%. In addition, the government also restricted the margin trading, prohibit malicious short selling, the official threat, according to the law to deal with illegal persons and the market rumors. The rescue measures, including 21 of China’s largest brokerages, agreed to invest $120 billion ($19 billion) in the stock market, as well as the social security fund.相关的主题文章: