The recent bitcoin news everywhere, it is miserable fall. The financial media statistics, after bitcoin since the end of 2017 hit a record high of $19299 a continuous decline, nearly a year to $3620, or up to 80%.
A large number of media exclaimed, bitcoin bubble tragic bloodbath, comparable to the history of the South Sea bubble, or Holland tulip bubble! In other words, we are witnessing history!
In this regard, as a blend in A shares in the years of observation, the Dragon King just want to say: as long as the light after the A shares of the strong wind and big waves, you wouldn’t be so get excited over a little thing!
A stock market investments, throw out a bitcoin seckill. For example, the gem B, since 2015 hit a record high, has dropped 98.67%. Basically is not the concept of fall!
The gem B fell 98.67%, compared with 80% bitcoin, seems to only down 18.67%. However, if you buy the dips in the gem B fell 80%, it fell 98.67%, you are not only a loss of 18.67%, but the loss of 93.35%, the same is almost gone!
According to this comparison, buddies can clearly see that in the A stock market investors bought the gem B, compared to buy bitcoin investors, miserable degree is not an order of magnitude.
A shares three years bear market, the classification of B falling splinters, or basically are more than 95%, even if the investors in the decline of 70%–80% hunters, is almost lost, not to mention high investors to buy. This really is a basement floor, a basement down at the bottom of the hell!
Perhaps a friend will say, grade B has leverage, will fall so much. In fact, many stocks have fallen quite badly, such as Thai Holdings, Beijing Tianli, Yin Zhijie, fell more than 90%, not to mention the delisting. Which fell more than 80%, it is a grasp of a lot, is not listed here.
These stocks and the classification of funds, not only fell by more than bitcoin, but the number of investors is also far more than bitcoin, a much bigger effect.
In fact, not miserable than what the market is like battlefield, want to survive, must control risk. There are three main ways to control risk.
Stop is the most commonly used investor risk control methods, it is setting a stop, the price fell to the stop, no condition to sell. The stop, can be a fixed value, the fixed ratio can also be a turning point or moving average moving average Sicha, or transaction intensive areas and so on, you must have a clear point, must be performed.
In section two, decentralized investment;
Simply say that “don’t put egg in one basket”, avoid the investment is too concentrated, was “Black Swans”, are all.
Decentralized investment can be divided into dispersed varieties dispersion, dispersion, time strategy, buddies can choose according to their actual needs. Diversification is especially important for investors and investors cyclical shocks.
Third, position control.
The position control includes two meanings, one is the overall position control, two is a single variety of position control. The position control is more like an overall risk control measures, investors can control the risk management by the size of his position.
Investors in this way, you must first estimate the market risk and the capacity of the individual, then calculate the appropriate positions, and then add to lighten up, let the actual positions in line with expectations.
These three methods can be used alone, can also be used in combination, but also through the improvement and permutation, the formation of new varieties. Through risk control, can pass through the bull and bear, long-term survival in the market.