Investment misunderstanding, rational understanding of the market

Investment refers to the economic behavior of a specific economic entity, in order to obtain income or increase capital appreciation in the foreseeable future period, invest enough capital in a certain field for a period of time, or currency is equivalent to a physical object. However, many people have some misunderstandings about investment, which has a negative impact on trading. Below, Haidu Investment will take you to look at investment misunderstandings.

Confusion of investment and speculation concepts

In securities or futures trading, there is a common misunderstanding that the holding time is long enough to be called investment, otherwise it can only be regarded as speculation. This is a serious misunderstanding of the concept of "investment". The "time" mentioned earlier refers to a foreseeable period of time, and the concept of "long and short" is not mentioned. Many people ignore the research and judgment of the underlying assets after understanding the mistakes. No one knows whether to study or not. This is a betrayal investment. In daily trading, if you conduct short-term operations in accordance with certain market "rules", it is still an investment behavior; blindly intervening in a certain stock and holding it for a long time will not get good returns, which will not only reduce the utilization rate and return of funds Rate is also a blasphemy of trading philosophy. Even if it is a windfall, or even a huge profit, only probability is at work. After all, opportunity is not inevitable. If we distinguish between investment and speculation only from the point of time, it is like hiding our ears.

See "machine" behavior

In the financial market, news is flying all over the sky, and all kinds of information, rumors, and analysis are flooding the market. When dealing with various so-called "news", one cannot beat them to the death, nor can they completely deny them. Some "news" is still good news for investors. Through "information", we can roughly clarify the hot spots of the short-term market, capture the public's investment psychology and investment orientation, define the level of market risk, and so on.

Seeing that the "machine" action is an extension of the interpretation of "information" and also the definition of an efficient market. For some blind news, some people will think it is nonsense, a trap, and an abyss, while some people will think it is a huge opportunity, as if it is a treasure. When "news" is not recognized by the market, no matter whether the news is true or false, it is an invalid market for the market, that is, the news or event has no impact on the market. For an effective market, even if news or rumors are vague and unreliable, they will still have an important impact on the market under the appropriate environment or atmosphere. The news itself may become unimportant, but an effective market brings many opportunities.