Trading Techniques   

Common mistakes most investors make

To many individual, Yes...100% loved one can help and does.

There are oso  who don when goes into leadership  role, mis-managing the nation wealth, oil?. cash/, it folk's  and greed/evil wealth. 

 

Do you know who can help to chop off one's bad habit? Loved one!!!

teeth53      ( Date: 23-Jun-2013 15:12) Posted: Bad habit always have to be learn the hard way and alway neber change, alway make a come back, like greed and dream on hope. Just sharing our daily bad habit. teeth53      ( Date: 04-Jul-2006 19:54) Posted: 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..

 

Bad habit always have to be learn the hard way and alway neber change, alway make a come back, like greed and dream on hope.

Just sharing our daily bad habit.

teeth53      ( Date: 04-Jul-2006 19:54) Posted: 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..

 

Eventually, China and India will be able to 'stand on their own two feet' say five years hence...

But right now, the DOW is the scary thing that's can be very contagious!!!

 

By 2020, China is likely going to be the second largest economy in the world. At this time "nimble" here and there. "Don't put the whole cake in your mouth and try to swallow it".

 

Livermore,

I understand your position of not recommending specific stock.  Thanks for sharing your investment theme. I also felt China and India are coming powerhouse. May be 10 years later their combined economy shall be very large. I read about BRIC,  Brazil and Russia in additions to India and China.

Oil and Gas, oh well, made some money out of some stocks and left already, lucky. Just waiting for right time to buy back again

Good Luck, hope all is well 

 

Stock markets.... red red like ang pow.... all the way thru CNY....

 

Oil and gas sector as well

 

Hi Alligator,

I don't recommend specific stocks here. I am not much of a TA person and sometimes you might buy soemthing and the next day the stock can fall. So it is a sensitive issue. Hope you can understand. My investment themes below still remain intact. Look for a theme and you can find a stock to buy. Guess what Ambani who is one the richest man in the world, and CEO of Reliance (India) said? He said that India's infrastructure cannot catch up with its development.

1  People in China and India have huge spending power.

 

Actually, there are so many stocks that are suitable as 'long-term' candidates...

But the question as to when to buy them is the problem...

If one buys at say 18c and it goes down next month to 15c, or
If one buys at 82c and it goes down to 60c...

What's the benefit if one doesn't really know the duration of the downtrend? 

 

Livermore,

What are the good stocks you believe can be bought for 'long term' holding? 

 

Hi Asleep,

Your point  "I will rather hold on onto winning stocks and let go of my losers at a loss than hold on to the losers, hoping that they will reverse and selling my winning stocks in fear that I will not maximize the profits." is a good point. Hold onto your winners.

Ok bad sentiment has brought down many stocks. But it is quite clear some companies out there are going to do better this year compared to last year. For those looking at stocks with long term potential, if don't buy now I don't know if there is another golden chance. So it might be a bear market as some say but stocks cannot down to 0 cents

Don't forget some companies out there are due for their year end result 



 

 

For my case, If the stock is not making a profit within 5 trading days, sometimes 10, depending on the market conditions, Id sell the stock even though I make a small loss.

As Jesse Livermore once said that the best stocks are those which show profits right from the start. I will rather hold on onto winning stocks and let go of my losers at a loss than hold on to the losers, hoping that they will reverse and selling my winning stocks in fear that I will not maximize the profits.

Holding too many positions in one go is a bad idea as well. You will have to monitor too many front lines. By spreading yourself too thinly along the front lines, will kill you. Id recommend the movie 300 to show how 1 good defended position and fend off a lot of people. But of course, holding 1 position at a time is too little as well.

 

it is bought because the buyer loved the stock...
love it's great fundamentals... and it's great management, etc, etc...

Then after buying those stocks, they will treasure them like nothing else...
They love their purchases very much... they will hold on to them no matter what...

And then, they argue with others that the solid fundamentals are worth cherishing under all circumstances...

Ask any experienced trader/investor and they would have heard at least one staunchest defender of a fallen stock all the way as it falls from the roof to the floor...

 

My personal view is that one of the reasons why one can easily go into net paper loss on your overall net position/portfolio is because sometimes people just buy too many shares. As I explained earlier, if you have 10 stocks and a severe market happen, you mind would not be able to work out your overall net position fast enough. You have 10 stocks which have all come down and you need to work through each one of them. You might be sitting on $5k paper profit but with many stocks, that paper profit is easily wiped in one day and you immediately go to paper loss.

 

 

 

 

 

This is very common...

After buying, they must wait for it to make a profit or break even...

They will never sell at a loss

Because they firmly consider it "only a paper loss" which is not yet a loss, if they don't sell...

This is a recipe for great losses...

Because when they finally decide to sell, it is at the bottom...

 

A common mistake is when people buy shares and get stuck, they refuse to cut loss early when the shares do not perform. Then they decide to buy the next share A. When they get stuck in share A, they move onto share B. That's how one of my friend has 15 stocks now. You will just move in a circle  

 

I'd say AlfretzTay has the ultimate secret to stock market success... hehehe...

 

Dirt cheap third liners may seem very attractive because if the price rises by only 1 bid, the percentage gain is very high. But many investors fail to consider the reverse. You can also make large losses if they fall.

Buying third liners too early or using a large proportion of your money is a mistake. Third liners are the last to rise in a rally and the first to fall in a correction. And the percentages are larger. For example, if you bought Yongnam in 2004, it "played dead" for 3 years until 2007. You could have bought blue chips, mid caps or better penny stocks and made money during the period. It would have been worse if you had most of your money tied up in that stock. No doubt Yongnam's fundamentals have changed for the better, but it only did so last year.

 

"When markets are on the uptrend : buy low, sell high and then buy high, sell higher.On the other hand, when the markets are on the downtrend : sell high, buy low and then sell low, buy lower." -- crazy_fave.