Market and trading Essays

Market and trading Essays
already mentioned earlier, since last August until the end of June of this year's market volatility provides a comparative good trading opportunities, however, in practice, although be prepared and have some movement, but not from the fluctuations even to get more only a prototype system for example, is worth recording.
A-share market a few features
A-share market, relatively Hong Kong stocks, there are several obvious differences, where even tried in accordance with the ; investment led to the valuation system of unique, small cap premium, premium junk stocks.
relatively more abundant and less mobile groups of mature players to form a more obvious sector rotation and Qi Zhang Qi or phenomenon.
macro-policy impact on the market even more obvious, and sometimes the power sector is a strong participant in the market with different overseas.
B shares and Hong Kong stock market, the relative difference
, B shares and Hong Kong stock markets, especially Hong Kong stock market ( Wall Street seemed almost), there will be some of the habits of the A-share market investors do not adapt to.
price formation rapidly and favor strong efficient market. Whether selling or buying, often gives people the opportunity large, the increase of liquidity but will welcome the premium.
affected by international capital arbitrage, liquidity change is more obvious. participants may be more mature,UGGs, Qi Zhang Qi or rare and significant sector rotation phenomenon. < br> capital is a strong participant in the player and predators, small shareholders still be fish. big firms is any indicator, therefore, fundamental trend of trade prevalent.
Trading Strategies
As the Hong Kong market, I feel seem that any time there are always overvalued stock, any time there are always massively undervalued stocks ---- that the independent movement between the stock, on a more high demand.
framework in which their investments, according to the system to determine the valuation of changes in funding allocation or not, it will easily lead to frequent changes in Conger species and the loss of financial management positions effective. ate a bowl of In fact, looking at the pot of this kind of thing is very close to happen in my.
like the variety and number of specific positions can be more flexible. For example, if the only holding only two stocks (not over-estimated) in stock position unchanged, if there are third only to the subject appear better price gratifying, this time trading timing would inevitably become awkward; but if the stock held by 5 to 10, choose the right to sell and the timing should be much easier to buy ---- actually did not think his position from the perspective of the number of species and the number of how many positions to make some judgments. but obviously, the real problem facing the need to make appropriate response. I like this should not change the bottom-up stock selection strategy and the sharing of leaving themselves no small (or is hard to judge), then the two target relative deviation of the original price is greater than 20%, will be relatively easy to determine which is more that the value of; in two relatively original target price is greater than 40% deviation when it may lead to adjustment of positions between species. look, seems to have no small mistakes space.
problem is really too big Hong Kong stock price fluctuations, sometimes a single species within 2 to 3 days price adjustment can be up to 20% or more, not to mention the adjustment of relative prices between varieties. speaking of 20% price adjustment will not directly affect the decision to adjust positions (40% of space), but in some confusion is inevitable when such occur, for example,UGGs, at least not even so sure that,cheap UGG boots, as previously, this readjustment is correct.
that the coming of some similar adjustments such dual positions will advance to give yourself a fault space, for example, at 10 yuan to 11 yuan transactions between, and so, whether to sell or sell true. preset prices should lead to better trading mentality, which makes the impact of price changes on investment more modest. of course, may also be present, I have experienced the phenomenon is a rare exception, so the angle from the transaction consideration is totally unfounded.
liquidity arbitrage
A shares, B shares, the local stock positions between conversion is a more troublesome issue. which is essentially time consuming source of liquidity arbitrage. even now there is no good way to solve this problem, may in fact record this very funny, if there is no barrier to separate the liquid ,UGG BOOTS, it also sets what benefit it? so right in the view of Wu Yi is not even find the handle this kind of position Zhuanhuan reasonable ways and means, or do not make the reasonable actions Gengjia thoroughly. Hong Kong is an ideal place of trading Even should always hesitant on this issue.