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Philosophy of the Stock Market

Sifu is right... :)

The real world is not as dainty as abstract learning can impart...

Thus, when it comes to the crunch, only a good guide and mentor is supreme in preventing
huge losses... hehehe..

But seriously... it is no laughing matter... stock market education is very very important.

 

The Stock Market is my University when comes to investing. All you've learnt from books and uni only prepared you for the real world of investing which is very unforgiven! Cheers!

 

Recalling, recalling...Learn to write off losess.

teeth53      ( Date: 28-Jun-2006 20:59) Posted: The difficult part to learn is to cut lost, not knowing after cutting it lost, price starting to shoot up like nobody business and the best part is to understand oneself (not to sell) when it prices keep going down (hanging on till hope arrive or hanging on till it is zero value) here one have to weight how much can the pro and con be weighted that such and such stocks isit worth keeping over your next 1, 3, 6 12 mths or even hold it, infinity till it reach your price, usually one can ave down esp on lower volume and buy within mean. Hv some profit, take some & leave some for other.

 

Err..i think, this times round some maybe paying in ten or hundred thosand, even in million of $$$ for wanting to earn a lesson learn here.

As for me, meanwhile i did not touch anyone of those (good, bad and or ugly) stocks. Can said abit Kiasu, not lahh...actually just tot that is is better be safe then sori as i c things, forewarning nyself. In other word i losses alot less, so i save abit more for my rainy day and wait for worst to get over with.

teeth53      ( Date: 28-Jun-2006 14:35) Posted: Mr mkt err... or Ms, Miss, Mrs or..Dr, anyway i think market is where the hard and painful lesson is learn by paying thousand and thousand of $$$ (lost) to learn a lesson, me too, no exception. I think all of us do.

 

singaporegal,

re your post 27 Jun 1555hrs....who to believe?? Only believe in yourself.

2-3 years ago, my broker highly recommended a certain stock....gave some fantastic story about a new technology which will storm theworld market...stock was at 10cts....going to have a rights issue for warrants.

I did my homework on the company:

negative equity

new shareholders just took control..new shareholders suing old shareholders; and vise versa...they won't have time to focus on the business

one of the directors bought 100lots from the open mkt....and sold 50lots within 2 weeks....=>no confidence in the co. or kuching kurat director dont even have $5K to spare....

I turned down the offer...today the stock languishing @ 0.5 to 1.0 cts.

Sometimes, certain money not worth making...if I believed my broker and vested in the co. I am sure I would have had sleepless nights.....even if the stock goes up to $1.00 today, I would not  regret it cos at that time, I just did not feel comfortable with the co.

So, do your own research, believe only in yourself.

 

how not to buy when reach the peak? whether or not is a peak is at hindsight, only obvious after a few days later, which by that time, u have either

1) bought at the peak

2) missed the chance of buying at a lower price. This might make u mad and impulsive, buying at any price rise movement ...which might, t hindsight be the peak.

 

Very often it is the Wishful Thinking (clearly demonstrated in this thread)  of  Investors which would lead to Self Deception that finally resulted a wrong decision! Cheers!!! 

 

analyst report.. useful, but have to check around .. read a little more..

 

The difficult part to learn is to cut lost, not knowing after cutting it lost, price starting to shoot up like nobody business and the best part is to understand oneself (not to sell) when it prices keep going down (hanging on till hope arrive or hanging on till it is zero value) here one have to weight how much can the pro and con be weighted that such and such stocks isit worth keeping over your next 1, 3, 6 12 mths or even hold it, infinity till it reach your price, usually one can ave down esp on lower volume and buy within mean. Hv some profit, take some & leave some for other.

 

Mr mkt err... or Ms, Miss, Mrs or..Dr, anyway i think market is where the hard and painful lesson is learn by paying thousand and thousand of $$$ (lost) to learn a lesson, me too, no exception. I think all of us do.

 

Mr Market has many characters - one minute he maybe your best friend and the next your worst enemy! I think he is the 'smartest man' that I've ever encountered.

The moment you think you've beaten him, he'll strike you like a thunder-bolt. Therefore, as long as you're still in the Market, try as far as possible to 'learn' to respect him and do what he tells you to do (make sure you read the message correctly)! Cheers! 

 

It's good to look at the company from different perspectives. Maybe take the middle ground. Its ok to read analyst reports, but take them with a pinch of salt. Apply a safety margin to the price targets. The more optimistic the price target, the bigger the safety margin.

Most of the time, the analysts or their high net-worth clients bought the shares before the reports are made free to the public. Using TA, you can spot this from the price increases and volumes.

 

110% Don't believe in it, they R paid to perforamce for their master, high lighted the different of the 2 extreme, noted it & identify them to ur causes. 

 

very often, you'll see 2 different analysts with very very different perspectives into a same company!

Makes you wonder sometimes who to believe.

 

There is always a high percentage of Psychological factor in the "Stock Market".

I take Analysts' comments with a "pinch of salt" but read more closely with Analysts'/frim's backup with research on paper report.

- Nornally contains a declaration that the Analyst do not own the shares in question

- Important are the "assumptions" and the "downside risks" in their comments.

 

Tanglinboy : "Dotted's" story is very meaningful.. As retail investors, we should learn never to be like the villagers in "Dotted"'s story. Observe a stock's movement before buying or selling.  Don't chase after peak prices as it would allow the "big boys" to sell, or panic sell when prices dip as it would conversely allow the "big boys" to buy. Always buy within our means, unless you are daily  trader.

 

Good story!

and hikitty is right... sounds like how the big players move the markets at the expense of retail investors.

 

"Dotted's" story is similar to press reports of analysts' targeted prices.  After having progressively collected shares at low prices, they will suggest a target  many times higher than  the prices they had bought. They will unload more progressively by progressively buying less at high prices. Similar to "Dotted's" monkeys' story?  Who would be "stupid" enough  to tell the whole wide world to make money?  The moral of  the story is, "When someone openly tells you it's time to buy,  it's probably time to sell or "cut loss" .  The converse holds true.

 

Once upon a time, in a village a man appeared who announced to the
villagers
that he would buy monkeys for $10. The villagers seeing that there were
many
monkeys went out in the forest and started catching them.

The man bought thousands at  $10 and as supply started to diminish and
villagers started to stop their effort he announced that now he would
buy at
$20. This renewed the efforts of the villagers and they started catching
monkeys again. Soon the supply diminished even further and people started
going back to their farms.

The offer rate increased to  $25 and the supply of monkeys became so
scant
that it was an effort to even see a monkey let alone catch it.

The man now announced that he would buy monkeys at  $50! However, since
he
had to go to the city on some business his assistant would now buy on
behalf
of the man.

In the absence of the man, the assistant told the villagers. Look at all
these monkeys in the big cage that the man has collected. I will sell
them
to you at  $35 and when the man comes back, you can sell it to him for
$50.

The villager squeezed up with all their saving to buy the monkeys.

Then they never saw the man nor his assistant, only monkeys everywhere!