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Greed can lead to downfall

Hi Singaporegal,

I really do not know. Look at a stock like Raffles Education. It is not collapsing although its P/E is so high.

 

But I might try to sell part of my stock at near its all time high if  I see a major correction and buy back. But very minimal buy sell buy sell for me.  

 

After analysing for some time, I find my rewards with minimal buy sell buy sell is much better.  Why not try to hold at least one stock for long term after you buy it at the right time? You don't lose out as you still do your TA with other stocks.

 

 

 

Hi Livermore,

IC. Looks like you are very much into FA. Does this mean that you will sell if you hear negative FA news about the company? If so, how bad must it be to induce you to sell off?

 

Livermore...

Unlike you, I have very strict targets for exiting my trades.

Even if I am holding for the long-term, when my stock reaches that target, I always sell.

My targets are derived from chart-based resistance lines.

 

Hi Singaporegal,

Hey no problem. I am not sure when I am going to sell my stocks now. I shall monitor the company's performance and its plans for the future. I also read carefully what is happening in business news and around the world.

 

 

Hi Livermore,

Thanks for sharing. Can I ask how long is your buy-sell cycle?

 

This feng shui master thing u listen to me one  

 

Ultrameg... thanks for the tip... :)


Anyway, since I've already paid my Fengshui master, I'd probably be better off getting 'my money's worth' by placing the lions worth as he has instructed...

ie. put one just behind the backside of the one in front.

Hope the "Fatt" (wealth) will happen  soon... :)

 

ipunter, place the pi xiu side by side, facing towards the window or main door.

 

Livermore...

I agree with you that long-term investing does bring much profit when the stocks go up.

But traders tend to be convinced that being a long-term investor is one of the most dangerous things to do, due mainly to market uncertainties.

Of course it is easy to say one should have stayed in a particular stock after the stock has risen.

 

The concept of "avaraging up" was beautifully demonstrated by dancer Nicola Darvas some years (decades) back.

He was right smack in the midst of a bull-run when he kept buying up as his stocks rose.

He made $millions in the process using his unique "box system".

 

Hi Singaporegal,



I don't have much fear if I average up as the share price goes up because my positions are "covered". Of course I do not average up like 10, 15, 15 and then suddenly 50 lots. If I put in 50 lots, then maybe it is greed. Even if the share price comes down during averaging up, there will come a point when I might sell off a part of the earlier lots to "cover" my positions should the price starts to continue to move downwards.



I don't like buying more lots when the share price come down. So my averaging as the share price comes down is very minimal in staggered 5 lots. There is fear if I buy more lots as the share price comes down and if I am wrong, my loss is great.



So as the share price goes up, my confidence to buy increases and not when the share price comes down.



I am currently accumulating a share. I bought at 72c, 66c and 59c. My first buy was at 72c and due to the market crash it is now at 64c. I am thinking I might not buy any more until it clears above 70c. When that happens, I have not much fear as my buys at 66c and 59c are all "covered". My idea is same as yours in wanting a confirmation of a uptrend. One difference is I already start to accumulate at consolidation phase but with TA your initial buy will be later.

 

I know you are a TA person. TA is a useful skill to have. If I remember correctly Wing Tai was one of your buys a few months back at around $2.20? I am not sure if you still have Wing Tai but you can see it is now $3.18. It might be a good idea to have at least some stocks you keep for long term without too much trading. The rewards are much better.

 

taybc1071...

I was given to understand by a paid Fengshui master that two Pi  Xiu Lions are required. And these are placed as "accumulator" and "receiver", one behind the other.

I understand also that placement in the right sector and according to the current heavenly constellations is important.

 

ipunter, understand that this pi xiu help the owner accumulate "wealth". This fengshui lion is good in receiving wealth without letting out as they are said to have without "backside". The correct position is to place it facing your main door or windown to enable them to receive wealth for you. One pi xiu is sufficient. Cheer!

 

Singaporegal...

my da jie jie... :)

You are absolutely right and so I agree with you totally on that ! 

 

Hi Livermore,

 I've been meaning to ask you this question. Here goes - I understand you do averaging. How do you control your emotions (greed and fear) when you do averaging? You'll need to control the urge to jump in when price fluctuates right?




Emotions are easier to control for me because I buy and sell in discrete quantities.


 

 

Ultrameg...

I heard a pair of "Pi Xiu" (Chinese Fengshui lions)  must be placed so that the 'wealth-receiving' animal must be just standing behind the back of the 'wealth-gathering' one.

 In this way, "Fatt" or wealth can be expected...

Is this placement correct?

 

Ten4one...

Wow!

Thats's another "whopper" of a great post from you again!

Superbly said....

And practical, too!... :)

 

Agree with ten4one! The market place isn't a living thing that plots against you.

 

Personally I feel one should not take revenge on the Market 'cos your loss is all due to your own actions of buying and selling. The Market is just there for you to trade.

Learn to accept your losses and move on; and be ready to fight a new battle again and again and again. If you could surive many battles, I'm sure you will one day win the war and that's most important. Cheers!

 

Livermore...

Taking revenge on the market is rather a common practice...

Like in a casino...

When one has lost, one always desire to win back what is lost by doubling up...