HLJHLJ

I 100% agree with u bt there are ppl we try to save them bt they just cannot listen.

Share mkt is an up and down thing.Wat the trader is doing is that they are trying to time the market.And of course they fail.

Thus u find alot of these traders losing $$$ and trying to buy books and attend seminars to help them win.It oni benefit the book salesmen,writers and publishers. 

The   successful things in life  are just simple things that do not need TA skill or FA skill etc........ etc...etc..

The flip side of 'paper loss' is real gain for all those who have bought but dumped quickly at the very high prices.

For example:-

sold SGX on the downtrend rebound  @15.7,

sold Rotary on the downtrend rebound @1.33... and many others, only a few short months back.

Many, many stocks are now only at fraction of the price a few months back...

This is undeniably due to the 'hot frogs effect'...  

Livermore - I fully agree with you about the delusional concept of paper loss. Paper loss is real loss since you would not have incured that loss if you did not buy that piece of paper in the first place.

If you have bought Creative at $45 or Chartered Semicon at $15++ can you realistically call your $40 and $15 respective losses as paper losses only. As though if you hold it long enough - the paper losses will disappear and you will get back your your full $45 and $15.

Well whatever that makes one happy .... to each his own. If clinging on to the concept of paper loss makes them happy.

Hi SF,

 

Yes, it is good to discuss though it may seem like we are arguingJ. I wrote a reply earlier and all lost. *Sigh*. Let me try to remember what I wrote. As Elf mentioned some are good traders and some are not. Ultimately it still goes back to money management.

One year ago, I knew one of my colleague was trading heavily. He was into penny counters like Baker Tech (forgot the spelling). I told him to be careful. From my experience, sometimes when you trade too much  without proper money management or risk profile, your losses increase very fast. My colleague was trading like 100 lots of these penny counters. In the end, he lost about $50k after so much trading. Thus to a certain extent, you are right about too much trading of too many stocks without proper money management can lead to quick losses. But some other people can trade a few counters and still do very well.

SF, some of the high beta stocks have reported good results last year and this year, and better than your traditional blue chips like SIA. But what has happened? They still got “whacked down”.

 

What is the point of getting dividend if you have a huge paper loss? Do you want to get a $500 dividend and incur a $5k paper loss?

 

Elf, your point about “consistent application of the chosen strategy”

 

. If you try a strategy and it is a wrong one, one needs to analyse what went wrong and change accordingly. Consistent application of a wrong strategy will lead to consistent losses.

 

If you watch Money Mind, you would remember that a few months back, fund managers were giving advise to pick up counters for long term. Sometimes you pick up but if it is a wrong decision, it might be a better option to cut loss and protect your capital. This point can be highly debatable among many. But a few months ago until now, some stocks have fallen a lot.

 

Paper loss is a loss. It is as black and white. But some may not see it that way. It is a dangerous mindset. Things get ugly when the paper losses grow bigger and bigger.    

 

All the best! 

 

Hi SF,

Those investing but see their counters falling are not upset? When paper loss gets bigger and bigger, they are still not upset because they are looking at long term?

When a person trade in shares,his objective is to buy low and sell high or vice versa.

Is it possible to sustain in the long run?The answer is of course not.

Thus many ppl trading in shares are caught and many traders are very unhappy ppl rite now.

And they start to get more upset everyday when they see their counters falling everyday.

So the way to go is INVEST in shares rather than TRADE in shares.

Hi SF,

What do you mean by this? "Thus trading in shares or trying to buy low and sell out b4 the crash is not the way to go." Do you mean even if you know crash is coming, still hold onto to stocks for long term?

Frankly there is nothing wrong with China stocks. Just one bad apple like China Aviation Oil and the stain seems to have stayed with the rest of China stocks.