
Who is Mrs macwilliams?Jusr because she is ang mo ppl start to look up to her opinion?
Have to watch the company's earnings...that is the key.
When u buy shares u are buying into the company.Ig the company's is profitable,ur future returns is there.
Livermore ( Date: 30-Nov-2008 09:32) Posted:
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Hope you had a look at this Sunday Times newspaper on pag 24. Mrs Macwilliams is a options trainer. Her advice,"Always focus on protecting your capital and the returns will follow. Approach the stock market like a business. Always have an exit strategy with either a profit goal or loss potential. When your position begins to lose value, honours your loss target and do not look back"
Ask yourself this question, If you buy a stock at $1.50 and let it slide all the way down to 50c, is that capital protection? If you did not cut loss earlier, you find that you don't have enough capital now to buy stocks at cheaper price now.
To me one of the common mistake is that some people don't really track their overall net position. i.e since the day you started in stock market what much money have you made or lost. When you track that daily, your actions to protect capital is easier. Reality is when you buy too many stocks, it is very hard to track.
I am referring to a bull market here. If you analyse carefully my buy set up, you only leverage one time on a conservative basis, then let the stock fly. Then a correction happens. so maybe you sell off some. Then you begin the next buy set up, then you leverage again only 1 time (conservative). In that way, you just keep doing the same for the main stocks you have on hand.
For each stock you just leverage one time (conservative) during your buy set up. In that way, risk from margin is mitigated.
Livermore ( Date: 28-Nov-2008 18:57) Posted:
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SupremeA... :)
Clever trick... but stock market play should be taken more seriously than that..
If one is to stay in the market for long, one has to possess a fool-proof approach,
which must have a built-in factor to combat one's self, ie. master one's own human behaviour in the treacherous marketplace...
otherwise one is guaranteed to lose a lot of hard-earned money...
Those who are at last asking about "the Beauty and the Beast Tutorials" (my personal bible) can find the ad copy here.
The sooner one adopts a sound practical philosophy in one's market activities, the better.
Hahaha... you are right... :)
For those who already know, it is easy ...
but for many, accepting tutoring is the key to great stock market living... hehehe...
that r jargons.
can eqp first liner with high beta n low beta for the other.
FL stock trading with high vol n running in tendum with STI at times, may double % up, or down. ie SGX...
SL stock trading with low vol n could hardly move with pace with STI. ie self explanary.
Take a look at those in Catalist.
wen.wen.89 ( Date: 24-Nov-2008 11:33) Posted:
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can anyone define first-liner and second-liner. couldnt find a definition on the web.. how do they affect our trades?
http://elfinchilde.blogspot.com/2008/11/where-700bil-is-going.html
'ere we go. rather than arguing about investing/trading styles, may as well spend time on self education. something interesting for ppl to read. The Plunge Protection Team. Ever heard of it?
Anyone wondered how the DJIA can *methodically* drop about 400 pts every day for 6 days after Obama won, or how, the recovery in every down, like friday's, happens only in the last hour or so?
Or how, in August, the COT report showed that 2 investment banks---yes, only two--had shorted 20% of the world's gold and silver supply, in the days prior to these commods crashing?
Or why, on Nov 19, with the S&P down 4%, the Fed gave a massive short term loan at almost zero interest rate to GS, telling them to "put the funds immediately to work", whereupon GS immediately bought S&P futures at or above the bid price massively?
food for thought.
You are right...
Like they say, there are many ways to skin a cat... hehehe...

div plays: only take the traditional bona fide blues pls. reits and shipping etc were growth stocks, growth stocks have their boom-bust cycle.
waverly: kepland/smm: there are some of these around, where they aren't quite 1st liners, but they aren't quite second liners either. Perhaps they are somewhere in between, the way s'pore is considered midway between 3rd world and 1st. In proper FA investing: if you are holding the parent company, you shouldn't be holding the daughter as well: since that is in effect leveraging. There should be a choice made between whether to hold the daughter or mother company. SPC/kepland are daughters of kepcorp. just as SMM is daughter of SCI.
SIA as 1st liner. since it's our only airline. haha. it's similar to what i was saying: not all of the ST 30 components are in because they are blue chips. some are in for political/other reasons. Besides, SIA has a long history, sole national airline, plus temasek backing. these alone qualify it.
traders/investors/etc. geez. give it a break folks. i'm more practical: if it works for you, take it. CW is right: it's about having a clear plan to play it objectively. Many ways for a stock to go, similarly, many ways for a person to make money in the market (and likewise, many ways to lose too). the best way is to take something that suits YOU---in terms of practical: how much time can you spend watching the market, can you stomach volaility, how big can you play etc---rather than just apeing people blindly.
cheers!
Once and for all.... make no mistake about it...
Everyone is a trader ie. they buy and sell stocks...
Some trade more, some trade less (ie. longer-term)...
People from both camps lose and also make a lot of money... hehehe...