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how do you cope with your losses
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Just more...(FYI only) teeth53 thot changes got to come, rather then going back to business as usual
http://dodd.senate.gov/index.php?q=node/3859 (Chirst Dodd - US Senator for connecticut),
U.S. Senate Committee on Banking, Housing, and Urban Affairs Committee Chairman. www.Banking.Senate.gov
As Chairman, Senator Dodd sets the committee’s agenda; guiding the consideration of legislation under committee jurisdiction.
http://money.cnn.com/2009/03/06/magazines/fortune/colvin_bonus.fortune/index.htm
Chris Dodd wants to scrap bonus "lavish Wall Street bonuses"
teeth53 ( Date: 07-Mar-2009 16:20) Posted:
Just FYI only...some of this is going to happen
http://money.cnn.com/2009/03/06/news/dodd.fdic.fortune/index.htm?postversion=2009030700
Fear of a big collapse continues to rise as Washington prepares for big bank failure, 5 biggest U.S. bank holding companies - Bank of America (BAC, Fortune 500), Citi, JPMorgan Chase (JPM, Fortune 500), Wells Fargo and Wachovia, which is now owned by Wells - had domestic deposits of between $271 billion and $701 billion at the end of the 2nd Q of 2008, according to the most recent data available from the FDIC (Federal Deposit Insurance Corp) chief Sheila Bair, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Tim Geithner. All three recently wrote Dodd to support an emergency expansion of the FDIC's capacity to borrow from the Treasury.
To borrow as much as $500 billion from the government to shore up the deposit insurance fund.
Shares of Citigroup (C, Fortune 500), the giant financial company last week received a 3rd round of government aid, have fallen 58% since the government outlined a plan to convert the bank's preferred shares to common stock, fear has given way, it dropped below $1. Citi plan aimed to ease market concerns about the bank's health. But fears have only increased, judging by the swoon in financial stocks the sharp rise in the cost of protecting financial-sector debt against default. |
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Just FYI only...some of this is going to happen
http://money.cnn.com/2009/03/06/news/dodd.fdic.fortune/index.htm?postversion=2009030700
Fear of a big collapse continues to rise as Washington prepares for big bank failure, 5 biggest U.S. bank holding companies - Bank of America (
BAC,
Fortune 500),
Citi, JPMorgan Chase (
JPM,
Fortune 500), Wells Fargo and Wachovia, which is now owned by Wells - had domestic deposits of between $271 billion and $701 billion at the end of the 2nd Q of 2008, according to the most recent data available from the FDIC (Federal Deposit Insurance Corp) chief Sheila Bair, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Tim Geithner. All three recently wrote Dodd to support an emergency expansion of the FDIC's capacity to borrow from the Treasury.
To borrow as much as $500 billion from the government to shore up the deposit insurance fund.
Shares of Citigroup (
C,
Fortune 500), the giant financial company last week received a 3rd round of government aid, have fallen 58% since the government outlined a plan to convert the bank's preferred shares to common stock, fear has given way, it dropped below $1.
Citi plan aimed to ease market concerns about the bank's health. But fears have only increased, judging by the swoon in financial stocks the sharp rise in the cost of protecting financial-sector debt against default.
The reason why this bear market is
more likely than not to continue going lower is that more and more (reluctant) long-term holders (
as opposed to investors*) will find it harder to survive in this big bad bear market.
Thus, because of the extent of the bad times, more such people will be needing cash badly.
And thus many will eventually sell out to realise the much needed cash for mere survival and to tide them over.
In such bad times, who can afford the $luxury$ of investing long term?The big boys certainly know this, and thus will withhold committing their funds all out.
They will be the ones who will indeed buy cheap-cheap later on when the time is ripe...
(*Long-term holders are often wrongly called 'investors' because they are not investors at all! This is because real investors will know when to take their hard-earned profits out of the market before any savage carnage takes place to nullify their profits).
Cannot agree with you more.
iPunter ( Date: 06-Mar-2009 18:54) Posted:
About book value in below posts...
At any given time, market value is the only true value...
Book value is based on nett tangible assets value, nett intangible assets value... etc, etc...
which is a fair gauge in itself.
But have you ever asked yourself why there are no takers even at below book value?
It is precisely because of its market value... when 'cheap-cheap' can be 'expensive'...
(in a roaring bull market, 'expensive' can be 'dirt cheap') ... 
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The market is always right, anytime. All other trade participants may be right SOME of the time.
trader88.sg ( Date: 06-Mar-2009 12:24) Posted:
Definitely not at the book value. The fair value should be the traded market price.
wongmx6 ( Date: 06-Mar-2009 12:11) Posted:
I tend to agree with what you've mentioned but at current share price, so depress!!!! DBS, NOL, F&N are trading below its Book value. If someone wanted to buy over. What price to you think he need to pay???
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About book value in below posts...At any given time, market value is the only true value...
Book value is based on nett tangible assets value, nett intangible assets value... etc, etc...
which is a fair gauge in itself.
But have you ever asked yourself why there are no takers even at below book value?
It is precisely because of its market value... when 'cheap-cheap' can be 'expensive'...
(in a roaring bull market, 'expensive' can be 'dirt cheap') ...
This is one piece of great superb stuff around...
Better print it out and treasure it like gold ...
and it's free too... hehehe..
I call this trading stimulus/motivated posting. Ha. ha.. ha...
derricktan ( Date: 06-Mar-2009 14:52) Posted:
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The Twin Pillars of Failure: Stubbornness and Pride (March 1, 2009)
Dan Fitzpatrick
Friday was the last day of the month! Depending on whether you are bearish or bearish, February ended with either a bang or a whimper. We are agnostic here -- we are neither bulls nor bears. We are realistic traders who act in accordance with three principles:
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We observe.
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We respect the market action -- even if we believe it to be irrational or "wrong"!
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We respect our capital and seek to grow it, not destroy it.
When you base trading decisions on a strong and confident bias that is devoid of flexibility, you bring two factors into your trading that will surely make the mightiest among us meek: Stubbornness and Pride. Neither work in trading. Stubbornness and Pride will take you out of the game for the simple reason that the best traders (and professional money managers) are wrong a lot! Actually, all traders are wrong a lot. But the difference between the best and the worst (read: "broke" or "on the way to broke") traders is the ability to admit being wrong, and to then take action on that admission.
All traders expect to be right. And they expect to get paid for being right! However, upon taking action, the best traders immediately begin looking for evidence that they are wrong, while the worst traders sit back and wait to get paid. When the best traders gather enough evidence that they are wrong, they choose the evidence over stubbornness and pride. They choose "capital preservation" over "pride"; They choose "wrong" over "stubborn". And they will quickly take a small loss rather than stand pat and risk a large loss because they view a small loss as the equivalent of being right after you are proven wrong. Over time, you can get paid quite nicely for being right after you are proven wrong -- because changing your view in the face of new evidence is preferable to stubbornness and pride. Flexibility trumps stubbornness and pride every time. Flexibility is in accord with the three principles we follow.
Why am I making this point right here and right now? Because I am tipping my hat to the ability of the market to run farther and faster than most believe possible...and to snap back with a ferocity that few anticipate. Only liars and fools know with certainty which way the market will go from here. The rest of us mere mortals strive for evidence-based flexibility rather than confident rigidity that derives from Stubbornness and Pride.
Here, we expect to be right; but we search incessantly for evidence that we are wrong. And in recognizing that we are wrong, we are right...and over time, we will get paid for being right.
Think about it. |
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The Twin Pillars of Failure: Stubbornness and Pride (March 1, 2009)
Dan Fitzpatrick
Friday was the last day of the month! Depending on whether you are bearish or bearish, February ended with either a bang or a whimper. We are agnostic here -- we are neither bulls nor bears. We are realistic traders who act in accordance with three principles:
-
We observe.
-
We respect the market action -- even if we believe it to be irrational or "wrong"!
-
We respect our capital and seek to grow it, not destroy it.
When you base trading decisions on a strong and confident bias that is devoid of flexibility, you bring two factors into your trading that will surely make the mightiest among us meek: Stubbornness and Pride. Neither work in trading. Stubbornness and Pride will take you out of the game for the simple reason that the best traders (and professional money managers) are wrong a lot! Actually, all traders are wrong a lot. But the difference between the best and the worst (read: "broke" or "on the way to broke") traders is the ability to admit being wrong, and to then take action on that admission.
All traders expect to be right. And they expect to get paid for being right! However, upon taking action, the best traders immediately begin looking for evidence that they are wrong, while the worst traders sit back and wait to get paid. When the best traders gather enough evidence that they are wrong, they choose the evidence over stubbornness and pride. They choose "capital preservation" over "pride"; They choose "wrong" over "stubborn". And they will quickly take a small loss rather than stand pat and risk a large loss because they view a small loss as the equivalent of being right after you are proven wrong. Over time, you can get paid quite nicely for being right after you are proven wrong -- because changing your view in the face of new evidence is preferable to stubbornness and pride. Flexibility trumps stubbornness and pride every time. Flexibility is in accord with the three principles we follow.
Why am I making this point right here and right now? Because I am tipping my hat to the ability of the market to run farther and faster than most believe possible...and to snap back with a ferocity that few anticipate. Only liars and fools know with certainty which way the market will go from here. The rest of us mere mortals strive for evidence-based flexibility rather than confident rigidity that derives from Stubbornness and Pride.
Here, we expect to be right; but we search incessantly for evidence that we are wrong. And in recognizing that we are wrong, we are right...and over time, we will get paid for being right.
Think about it.
I don't really agree because the Volume is too low to justify.
Definitely not at the book value. The fair value should be the traded market price.
wongmx6 ( Date: 06-Mar-2009 12:11) Posted:
I tend to agree with what you've mentioned but at current share price, so depress!!!! DBS, NOL, F&N are trading below its Book value. If someone wanted to buy over. What price to you think he need to pay???
iPunter ( Date: 06-Mar-2009 11:26) Posted:
Yes...
This wrong idea must be the single most important reason why individuals lose big fortunes in a bear market...
Since this very notion makes the loser hold his stock stubbornly, saying "it's only a paper loss",
And while the small "paper loss" keeps on snowballing, and snowballing...
Until it becomes a big "paper loss"...
And then the holder, out of pride or vanity... or naivity...
Will still say "It's only a paper loss"...
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I tend to agree with what you've mentioned but at current share price, so depress!!!!
DBS, NOL, F&N are trading below its Book value. If someone wanted to buy over. What price to you think he need to pay???
iPunter ( Date: 06-Mar-2009 11:26) Posted:
Yes...
This wrong idea must be the single most important reason why individuals lose big fortunes in a bear market...
Since this very notion makes the loser hold his stock stubbornly, saying "it's only a paper loss",
And while the small "paper loss" keeps on snowballing, and snowballing...
Until it becomes a big "paper loss"...
And then the holder, out of pride or vanity... or naivity...
Will still say "It's only a paper loss"...
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Yes...
This wrong idea must be the single most important reason why individuals lose big fortunes in a bear market...
Since this very notion makes the loser hold his stock stubbornly, saying "it's only a paper loss",
And while the small "paper loss" keeps on snowballing, and snowballing...
Until it becomes a big "paper loss"...
And then the holder, out of pride or vanity... or naivity...
Will still say "It's only a paper loss"...
The topic on "Paper loss vs Real loss" has been discussed here in SJ as well as other forums countless times already and yet many are still not convinced that paper loss = real loss.
iPunter ( Date: 06-Mar-2009 10:50) Posted:
This thing called "paper loss" is such a big big lie (ie. bluff) by the general investment community itself that nearly every stock player is hoodwinked into thinking since it's only a 'paper' loss, it is not a loss and suggests that it is guranteed that some time in the future, the loss will be recovered.
Well, common sense will tell even any thinking kindergarten child that it is already a loss !...
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This thing called "paper loss" is such a big big lie (ie. bluff) by the general investment community itself that nearly every stock player is hoodwinked into thinking since it's only a 'paper' loss, it is not a loss and suggests that it is guranteed that some time in the future, the loss will be recovered.
Well, common sense will tell even any thinking kindergarten child that it is already a loss !...
Well... that may be an gross exaggeration, but just so the point is put through...
A loss is a real loss... it is already an accomplished fact...
If you have not bought that stock/s, you would not have
lost (
real $$$)!
And tomorow's uncertainties are also
just as real...
Ha ha, seriously, not stock ah. Lately, got one angmo both missing arms were transplanted sucessfully, so far so good.
But Ip notes valid loh. Cheers.
trader88.sg ( Date: 06-Mar-2009 10:33) Posted:
Good analogy. 
But if arm is bitten off by shark, there is NO WAY it will grow back!
iPunter ( Date: 06-Mar-2009 00:05) Posted:
It's just like a person whose arm is bitten off by a shark...
He can deny like hell, saying he still has the arm because given time it may grow back... But the point is... it may not grow back! ... But with stocks, it may go even lower even as you keep denying... hehehe...
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Good analogy.
But if arm is bitten off by shark, there is NO WAY it will grow back!
iPunter ( Date: 06-Mar-2009 00:05) Posted:
It's just like a person whose arm is bitten off by a shark...
He can deny like hell, saying he still has the arm because given time it may grow back... But the point is... it may not grow back! ... But with stocks, it may go even lower even as you keep denying... hehehe...
trader88.sg ( Date: 05-Mar-2009 19:41) Posted:
| Is paper loss considered loss?
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It's just like a person whose arm is bitten off by a shark...
He can deny like hell, saying he still has the arm because given time it may grow back...
But the point is... it may not grow back! ...
But with stocks, it may go even lower even as you keep denying... hehehe...
trader88.sg ( Date: 05-Mar-2009 19:41) Posted:
| Is paper loss considered loss?
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...which is to trade on technicals!
Livermore ( Date: 05-Mar-2009 22:04) Posted:
| Put is very simply. The objective is to win the war in the shortest time with minimal casualities. |
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