If you are still bothering by the changeable China investing market, and want to find certain quick method, you may have a look of the following article. May be you cannot get the direct information you want to search, but you can have a well-guider on investing market.
If you are still bothering by the changeable China investing market, and want to find certain quick method, you may have a look of the following article. May be you cannot get the direct information you want to search, but you can have a well-guider on investing market.
There are ten strategies for you to invest in China.
1. Sell the losers and let the winners ride.
Investors always take profits by selling their appreciated investments, but they hold onto stocks that have declined in hopes of a rebound. If an investor doesn't know when it's time to let go of hopeless stocks, he or she can, in the worst-case scenario, see the stock sink to the point where it is almost worthless. Of course, the idea of holding onto high-quality investments while selling the poor ones is great in theory, but hard to put into practice.
2. Don't chase the "hot tip".
Whether the tip comes from your brother, cousin, neighbor, or even broker, no one can ever guarantee what a stock will do. When you make an investment, it's important you know the reasons for doing so: do your own research and analysis of any company before you even consider investing your hard earned money. Relying on a tidbit of information from someone else is not only an attempt at taking the easy way out; it's also a type of gambling.
3. Don't sweat the small stuff.
The tip 1 has explained the importance of realizing when your investments are not performing as you expected. As a long-term investor, you shouldn't panic when your investments experience short-term movements. When tracking the activities of your investments, you should look at the big picture. Remember to be confident in the quality of your investments rather than nervous about the inevitable volatility of the short term.
4. Do not overemphasize the P/E ratio.
Investors often place too much importance on the P/E ratio. The P/E ratio must be interpreted within a context, and it should be used in conjunction with other analytical processes. So, a low P/E ratio doesn't necessarily mean a security is undervalued, nor does a high P/E ratio necessarily mean a company is overvalued.
5. Resist the lure of penny stocks.
A common misconception is that there is less to lose in buying a low-priced stock. In fact, a penny stock is probably riskier than a company with a higher share price, which would have more regulations placed on it.
6. Pick a strategy and stick with it.
Different people use different methods to pick stocks and fulfill investing goals. There are many ways to be successful and no one strategy is inherently better than any other. However, once you find your style, stick with it. An investor who flounders between different stock-picking strategies will probably experience the worst, rather than the best, of each.
7. Focus on the future.
The tough part about investing is that you are trying to make informed decisions based on things that are yet to happen. It's important to keep in mind that even though you use past data as an indication of things to come, it's what happens in the future that matters most.
8. Investors adopt a long-term perspective.
Large short-term profits can often entice those who are new to the market. But adopting a long-term horizon and dismissing the "get in, get out and make a killing" mentality is a must for any investor.
9. Be open-minded when selecting companies.
Many great companies are household names, but many good investments are not household names and vice versa. Thousands of smaller companies have the potential to turn into the large blue chips of tomorrow. This is not to suggest that you should devote your entire portfolio to small-cap stocks. you could also be neglecting some of the biggest gains.
10. Taxes are important, but not that important.
Putting taxes above all else is a dangerous strategy, as it can often cause investors to make poor, misguided decisions. Yes, tax implications are important, but they are a secondary concern. The primary goals in investing are to grow and secure your money. You should always attempt to minimize the amount of tax you pay and maximize your after-tax return, but the situations are rare where you'll want to put tax considerations above all else when making an investment decision.