发信人: yexu (xuye), 信区: Stock
标 题: My lessons from stock trading
发信站: The unknown SPACE (Wed May 21 02:12:41 2003) WWW-POST

Have seen so many newcomers in this board are busy picking the next black
horse and bet their money and the dream of their wealthy future on their luck,
I just want to share some of the lessons I learned from the stock trading in
the past few years. I have been in the market for a few years, maybe a little
bit shorter or comparable to mummy's. I have earned a lot of money ( I mean a
lot !) and I also lost huge. I hope I knew better in the past but in the stock
market regret worths nothing. So I have to look forward and learn from the
lessons which are:
1. trust the probability theory, not your luck. In the short term, the luck
may be important (BTW, your luck is as good as anybody's. If you really
believe your luck, buy lottery), over the long time, the probability will
converge and the technique will be the dominant factor.
2. don't touch penny stock. Based on the probability computed from the past
data, you are expected to loose huge money if you buy penny stocks.
3. don't play option.
I know mummy won't agree. But for me, this is the rule. Unlike buying stocks,
option is a zero sum game. Basically you are gambling against other people.
Unless you have very good instinct like mummy, or you have a lot of time to do
the research, you will generally be on the losing side since you are generally
playing against professions who are backed up by a lot of reserches and inside
information. I am not saying you won't earn big in the option trading, just
over the long run, you are quite likely to loos money.
4. the usefulness of TA is limited.
5. don't trade too much. A day trader basically sample the white noise.
6. always set the stop price.
7. diversity your porotfolio by the boring index funds.

Anyway, I strongly suggest a very good website: www.fool.com. The name of this
websit is funny but the content are not.

Good luck.


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※ 来源:．The unknown SPACE bbs.mit.edu．[FROM: 64.203.]