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IreneL Senior	05-Jul-2006 20:52        IreneL About Contact  Quote this Post!
x 0   x 0  Alert Admin	Hi Nostradamus Senior I indeed sold off Asia Tiger at 0.12 = a huge loss. However, having gotten into the share market less than 10 years ago, and not having the luxury of time to read up on each conter's fundamentals because of my work then, my ability to pick good stocks was, and still is, negligible. Which stock (s) would you recommend under the current market conditions as, from your sharings, I believe you are doing very well. Many thanks.
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Novice1 Member	05-Jul-2006 20:35        Novice1 About Contact  Quote this Post!
x 1   x 0  Alert Admin	Thank you for sharing...I learnt a lot from you.
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Nostradamus Supreme	05-Jul-2006 20:29        Nostradamus About Contact  Quote this Post!
x 1   x 2  Alert Admin	9. Falling in love with a stock Known as a quantitative approach, a fair number of fund managers follow it. And a surprising percentage of them are at the top of the heap. Don't place any emotional attachment on any stock. Don't hold on to a lousy stock in the hope of breaking even. Cut loss and buy a good stock instead. You'll have a better chance of doing so. Let the numbers dictate what you buy and sell. Don?t let fear and greed enter into your decision making. Stock that performed well in the past may not do so in the future.
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Nostradamus Supreme	05-Jul-2006 15:08        Nostradamus About Contact  Quote this Post!
x 2   x 2  Alert Admin	8. Focusing on dividend-paying stocks Dividend-paying stocks can sometimes provide a steady income stream for risk-averse investors. But dividend-yielding stocks can sometimes go down. For growth investors, they may also produce smaller potential gains. Other problems may occur. Even a blue chip can't always guarantee a steady dividend yield. If the company falls on hard times, it may reduce or eliminate its dividend. To make matters worse, what if you still own the stock, even though it's been trending lower in recent weeks or months? A sizable drop in the stock price can quickly wipe out your dividend payouts and more. But unless a stock is also rising in price, you could be missing out on double-digit or higher price percentage gains of leading growth stocks. Many investors equate growth stocks with high risk. While such stocks tend to be more volatile than a stodgy blue chip, there are ways to help reduce downside risk. For instance, you should always stick with firms that boast strong financial performance. Buy only at proper buy points after sound breakouts, and when the stock market is in an uptrend. Once you find a leading growth stock that fits your buy profile, track its daily and weekly price and volume action on a chart. This can help you spot secondary buy points or warning signs, such as new highs on weak trade, big downside reversals on heavy volume and violations of long-term trend lines. Keep an eye on the overall market and the stock's industry group performance too. Three of four stocks follow the market trend. Strive to lock in some gains on the way up, especially in a choppy market. Always be ready to cut loss, whether due to multiple sell signs or if a stock falls 8% below your buy price.
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ten4one Master	05-Jul-2006 11:43        ten4one About Contact  Quote this Post!
x 0   x 0  Alert Admin	Yup Average Up is always less painful than Average Down 'cos you could always get out (50% or more)  once the downtrend begins, and still make a handsome gain. Whereas, Average Down you couldn't do likewise when the upward trend begins. And the wait is long 'cos upward movements often take a longer time to move than downward movements! It is something like the 'G' Force! Cheers!!!
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Nostradamus Supreme	05-Jul-2006 10:06        Nostradamus About Contact  Quote this Post!
x 3   x 2  Alert Admin	7. Buying stocks in a down market Patience is a virtue for investors. Never catch a falling knife. Never is that more true than during a market downtrend. A falling market makes owning stocks a risky proposition. Three out of every four stocks follow the broad market's trend. Thus when the major indexes fall, 75% of all stocks will fall along with them. That means that the safest place for you to be during a downtrend is in cash. By selling your winning stocks, you're safely collecting your profits, rather than watching them wither away. By cutting your losses short you're protecting your capital, instead of watching small losses grow into big ones. Without any stocks to obsess over, some investors can get antsy. Eager for action, they may jump back into the market, looking for something to keep them busy. That's the wrong approach. Instead, take advantage of downtime during a market downtrend. Consider taking a little time away from the market. Get away from your computer screen, get some fresh air, pursue a hobby. Taking a step away from the market will recharge your mental battery. That way when the market rebounds and launches a new rally, your mind will be clear. Rather than fretting over gains you didn't make or losses you could have avoided, you'll come in with a fresh perspective, ready to make trades without the burden of emotional interference. No new rally has ever started without a follow-through day, so look for that to occur. Any up day after a downtrend counts as Day 1 of a rally attempt. A follow-through happens when one of more of the major indexes logs a significant up day on Day 3 or later of the rally, in higher volume than the previous day. While you wait for a follow-through, spend time building a watch list of top-rated stocks. A major feature of new rallies is new leadership. Thus the top stocks of the last few years likely won't be the ones to lead the next market uptrend.
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Livermore Master	04-Jul-2006 23:46        Livermore About Contact  Quote this Post!
x 1   x 1  Alert Admin	Hi Irene, When you make your first buy don't buy all your lots. Buy a bit to "test water" If if goes up then average up. Averaging up seems silly to buy at a higher price but it is safer as your earlier lots are "covered" as they are in "profit region".
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Nostradamus Supreme	04-Jul-2006 22:23        Nostradamus About Contact  Quote this Post!
x 1   x 2  Alert Admin	tanglinboy, Those are not from me. They are from various sources. So I can't do so :)
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Nostradamus Supreme	04-Jul-2006 22:21        Nostradamus About Contact  Quote this Post!
x 1   x 2  Alert Admin	Hi IreneL, That's why I seriously advise you to sell Asia Tiger at current prices. It's a lousy stock. Then use the money to buy a good stock and you'll recoup most of your losses. As pointed out in Point 9, you don't have to fall in love with the stock and want to recover your loss from it. You missed out on opportunities with good stocks. Don't let emotions rule your investing.
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Nostradamus Supreme	04-Jul-2006 22:10        Nostradamus About Contact  Quote this Post!
x 2   x 2  Alert Admin	6. Focusing on low P-E stocks A common mistake among investors is to buy low PE stocks. Ace Achieve had a low FY05PER of only 3.5 (read Ace Achieve thread). But it reported a 27% fall in earnings. The market is efficient. Somehow, it knew and that's why the stock underperformed. Another common mistake is to ignore stocks with unusually high PEs. Truth is, many of the best stocks tend to command a premium because of their outstanding growth. Want to avoid another costly market faux pas? Don't dismiss large-cap stocks just because of their raw size. Large companies, given the right market conditions, an outstanding growth record and strong institutional sponsorship, can shine brightly too. It's natural to assume that an industry titan has already seen its peak growth rates. After all, year-over-year comparisons get tougher. Achieving 50% growth for a company with $1 b in revenue is tougher than one with, say, $5 m. Yet during long-term bull markets, the strength often moves from smaller stocks to bigger ones, or vice versa. Why? When economic growth moderates, investors often seek stable, solid growers. A big cap may form a long, multiyear cup or saucer base, virtually disappearing from view. But once a truly great company breaks out of its hibernation, it too can achieve gains of 100% or more. Search for large-cap stocks that have achieved many consecutive quarters of double-digit profit and sales growth, terrific profit margins and high return on equity.
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tanglinboy Elite	04-Jul-2006 22:04        tanglinboy About Contact  Quote this Post! Style: Combined   Mood: Yells: "hello!"
x 1   x 2  Alert Admin	Nostradamus, you should publish them in a book. haha..
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heartkorr Member	04-Jul-2006 20:04        heartkorr About Contact  Quote this Post!
x 0   x 2  Alert Admin	Well.. From what I have read, Warren Buffet seems to have made all of the 10 listed mistakes except the last one.
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teeth53 Supreme	04-Jul-2006 19:54        teeth53 About Contact  Quote this Post! Style: Flexible   Mood: Yells: "don't learn through life, learn to grow with life "
x 0   x 2  Alert Admin	Most of us always like to hang on, mistake make after mistake and lesson never learn, call it bad habit during our grown up time, even if we learn, we still, very still.... make, arhh...just human yah..
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IreneL Senior	04-Jul-2006 18:12        IreneL About Contact  Quote this Post!
x 1   x 1  Alert Admin	Hi Nostradamus Senior You are absolutely right about escalating losses resulting in one losing one's confidence. I am one of them. Having incurred huges losses over a few counters, I am now absolutely frigid with the market. Worse off, I monitored NOL when it was 1.79, MIIF when it was 0.875 and Hengxin when it was 0.33 > 0.49 but just couldnt bring myself to get in. And now I am kind of regretful.
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cashiertan Elite	04-Jul-2006 12:19        cashiertan About Contact  Quote this Post!
x 0   x 2  Alert Admin	No. 1 Rule: You never go broke taking profit, but u will always go broke taking too many/much lost!
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Nostradamus Supreme	04-Jul-2006 11:16        Nostradamus About Contact  Quote this Post!
x 4   x 2  Alert Admin	5. Not having an exit strategy Knowing when to sell your stocks is as much a skill as knowing when and which ones to buy. A key investing rule is to cut your losses quickly. Make your investing mantra: "There are no good stocks. They're all bad, unless they go up." All stocks can head south, regardless of analysts' hype, current earnings or sales projections. To protect your portfolio, limit all losses to 8% from your buy price. It's impossible to be right all of the time. By cutting losses short, you can protect your capital when you do make a mistake. You don't have to wait until your stock falls that far to cut your losses either. Even breakouts from good-looking bases will often fail during bear markets. When the market is under distribution, be ready to cut your losses at 3% or 4%. A common faulty way of thinking is that you "really" don't have a loss unless you sell. Or a paper loss is not a loss until realised. Unfortunately, you're sitting on a loss no matter what because the actual dollar amount of your portfolio is what it is no matter where your money is parked. You just have to sell and move on to find other opportunities. Think of cutting losses like buying insurance or paying tuition to the school of hard knocks. Yes, sometimes stocks will go up after you sell them. As frustrating as it may be, don't fret. That would be the equivalent of thinking life insurance is a waste unless you die. To improve your investing, do an analysis of all of your trades and learn from your mistakes. Over time you're bound to improve and take fewer losses. Above all, focus on buying only the best stocks at proper buy points in sound bases. Buy stocks in bull markets; avoid buying stocks in bear markets. Follow those rules and learn to cut losses quickly, and you'll fare well, whether you're a novice investor or a seasoned veteran. Cutting losses is just as important in an improving market. Don't ever let your gains evaporate and turn into losses. And don't let your losses get out of hand. If a stock hits the 8% sell rule, don't hesitate. Sell immediately. Letting your losses grow can severely hurt your portfolio. In a rising market, you want to take advantage of strong buy chances. Protecting your capital by ditching losing stocks quickly does just that. It's nearly impossible to predict when or where a stock will bottom. Escalating losses can also crush your confidence. When a leading stock breaks out, it pays to grab it as close as possible to the optimal buy point. If your confidence is hurt, that can make it tough to act decisively. You may then miss out on a great opportunity.
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Nostradamus Supreme	04-Jul-2006 10:53        Nostradamus About Contact  Quote this Post!
x 1   x 2  Alert Admin	U r welcome, scotty. Good post for u too. I'll reply in kind. This is the way it should be.
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Nostradamus Supreme	04-Jul-2006 10:51        Nostradamus About Contact  Quote this Post!
x 2   x 2  Alert Admin	4. Averaging down As the stock price goes down, you buy more shares. The average cost for your holding, therefore, goes down. But that strategy rests on two big assumptions. The first is that the stock will come back up. The second is that you'll hold the stock long enough to benefit from such a comeback.   Too often, a stock that goes into a descent - especially on higher volume - continues dropping. And dropping, and dropping. A stock may lag for years; some never get back to their prior highs.   Many stocks pull back to their 50- day or 10-week moving averages, or near their buy points. If these pullbacks occur on soft volume, there's a good chance the stock will recover and continue higher.   If a stock falls apart, be ready to cut loss. If you're sitting on a big gain, you want to protect it. If the stock's falling below your buy price, you want to cut your loss quickly. If company's earnings performance has been poor and its profit outlook is bleak. Still want to add shares? Instead of averaging down, investors can enhance their returns by averaging up. That's done by adding shares to an initial position as the stock proves itself and climbs a couple of percentage points. Some chart positions offer chances to add also. The first or second pullback to the 10-week line after a breakout from a proper base is a lower-risk area. Always look for above-average volume as the stock tests its moving average or makes new highs. A stock that keeps making new highs on low volume may be stalling. When adding to a stock, it's better to buy a smaller amount of shares than in the first purchase. This helps control your risk. Also, don't add if the stock's moving average line is below the buy point. That would be averaging down.
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Stockking Master	03-Jul-2006 22:09        Stockking About Contact  Quote this Post!
x 2   x 2  Alert Admin	http://biz.yahoo.com/special/mistakes06.html  10 "common mistakes" can be found here! But many will not agree with them!!
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scotty Senior	03-Jul-2006 21:07        scotty About Contact  Quote this Post!   Mood:
x 2   x 1  Alert Admin	Nostradamus, Thanks! good posts for u
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