From w88 casino to the selection of stock selling points

Hao Xuguang

(Source: China Securities Network2016-6-13）

w88 casino occurs not because people who own an item really feel that the item is more valuable than those who do not have it, but because the psychological pain caused by giving up the item makes people unwilling to give up what they already have. The harm people feel caused by losses is far greater than the pleasure brought by gains of equal value.

Richard Thaler (Richard Thaler）1980w88 casino was proposed (Endowment Effect8874_89085You spent years ago50Dollar bought a painting from an enterprising artist. The artist later became famous, and the painting is now worth1000USD. Consider the lowest price you are willing to sell this painting for, and how much you are willing to pay for an oil painting of comparable quality. The possible result is that most people charge a higher price when selling oil paintings, but are willing to pay a lower price when buying oil paintings of similar quality.

1990Thaler and Kahneman conducted a classic experiment in which half of the subjects were randomly selected and each was given a coffee cup. These people can sell coffee mugs. The experiment found that sellers’ average asking price was twice that of buyers. Because half of the subjects were randomly selected, theoretically, half of the people are willing to w88, half of the people who own the cup are willing to sell, and half of the people who don't have the cup are willing to buy. However, less than a quarter of those who own a cup are willing to sell, and less than a quarter of those who do not own a cup are willing to buy. That is, the actual number of transactions is less than half of the number predicted using standard theory. Sellers' high price tags and low actual transaction quantities reflect their reluctance to part with items they already own.

As can be seen from this experiment, the amount of money an individual requires to sell an item is usually more than the amount of money he is willing to pay to obtain it. This is the impact of w88 casino.

Taylor to University of ChicagoMBAStudents raised the following two hypothetical questions, which were very real and easy to imagine at the time:

Question 1,1998Year, Jordan and the BullsNBAThe championship final. You really want to see this game, and the tickets are sold out, and you won't get a chance to see Jordan play again for a long time, if not ever. You know someone who has tickets that might be for sale. What is the highest price you are willing to pay for this ticket?

Question 2, you have a ticket and really want to watch this game. Tickets are sold out and you won’t get a chance to see Jordan play again for a long time, if not ever. If you were to sell this ticket, what would be the lowest price you could offer?

The experimental result is that in question 1, his students are willing to pay on average330USD compared to the average price they were asking in question two1920USD. The gap between buying and selling prices is huge!

Study the reasons for w88 casino,George loewenstein，Daniel Kahnernanat199111670_1168063Half of the students were randomly given ballpoint pens, and the other half were given an exchangeable item6A chip for any of two different gifts. Request all63students will use this6Rank gifts based on their attractiveness. The experimenter then told all students that they could choose between a ballpoint pen and two pieces of chocolate. result,56% of students who owned ballpoint pens chose ballpoint pens,24% of students who did not have a ballpoint pen chose a ballpoint pen. But when students were asked to rank the attractiveness of the gifts, those who owned ballpoint pens did not rate them as more attractive than chocolates. These two experiments show that w88 casino occurs not because people who own an item really feel that the item is more valuable than those who do not have it, but because the psychological pain caused by giving up the item makes people unwilling to give up what they already have.

This explains why there are so many unused things at home that are still not thrown away.

w88 casino shows that people tend to overestimate the value of things they own. Because the value created by the ownership framework is inconsistent with the value that commodities bring to individuals based on rational analysis. This inconsistent judgment may partly explain why many home sellers place unrealistically high prices on their homes and find that few offers come in over long periods of time.

Why is there w88 casino? Because the existing items you intend to sell are closely related to you and are part of yourself, the price must be high. What you are planning to buy is not yet a part of yourself, so the price is accordingly lower.

Another reason is “loss aversion,” because selling commonly used items activates areas of the brain associated with loss aversion and pain. Selling commonly used things is often regarded as a loss, and the harm people feel from the loss is far greater than the pleasure brought by the equivalent gain.

This endowment effect also exists for things owned by individuals and companies, such as cars, houses, stocks, etc. After small and medium-sized investors buy a certain stock, they are often unwilling to sell it even if the price is already very high. As a result, they hold on to it for too long and may take an "elevator" - it is very likely that the stock will return to near the purchase price or even fall below the purchase price.

An investor's opinion of a stock depends on whether they own it or not. When they hold a certain stock, they especially like to look for content that discusses the reasons for the stock to rise, and are extremely reluctant to see the reasons for the stock to fall. This mentality will strengthen their unwillingness to sell a certain stock easily.

In the real economy, only items for "use" have w88 casino, but items for "exchange" do not. The items in the store are for exchange, so there is no shop assistant who is unwilling to sell the items in the store. Buying a stock is not to hold or "use" it, but to "exchange" it or sell it. The criterion for selling is to see if it will continue to rise? After the set short, medium and long-term technical indicators have a sell signal (if you are doing short-term operations, use daily indicators plus weekly indicators; if you are doing medium- and long-term operations, use monthly indicators plus weekly indicators), and the long-term moving average crosses the short-term moving average to form a dead cross, etc., or has been running in a downward channel, do not activate the areas related to loss aversion and pain in the brain to avoid being affected by w88 casino and being reluctant to sell. It is a wrong concept to be reluctant to sell at this time. There is only one condition for being reluctant to sell: it will rise in the future.

(The author is a professor at the w88 casino of Business, w88 casino, Beijing)

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