Tuesday 3 December 2013

Let the market become quiet for awhile

How many of us manage make profit from the stocks below? It is such amusement to see people chased after these stocks for one reason or another. It is lost opportunity to put money in these stocks and get stuck for months, and it will be nerve breaking to lose money and never recover from it.






 








I really want to know how many average retail players manage to make big profit from the above stocks. Even if you did, chances are you will pour back into another stock hoping another round of luck will be at your side and make another profit. Unless you stop where you are after a profit round and go for long holiday, you will be joining the game again and the vicious circle continues.

How many of us are willing to lose money. Ego bruised is very unsettling to some. The most dangerous part is unable to cut lost and move on. Buying stock is the easiest part. Selling a profit stock is the hardest, what more selling a losing stock.

Let me tell you this. Average retail players will never able to outdo the big boys. You may win once, twice but eventually and at the end, you will lose to them. Win small but lose big in the end.

The big boys are those with resources to out manoeuvre and control the market. The ordinary players are just like small kids playing among the adults. When the adults fight, the small kids get stampede. They will let you win the first few rounds. Time will comes to take out the knife and start the slaughter. Some of the charts above can tell you when the slaughter begins. We see this all the time but we don't participate.

The big boys even have grouping. Each trying to outdo one another. Their put road blocks here and there. Sometime the road blocks are fake to give the impression that more actions are in play. There is no emotion attached to it because they are so immune to the situation. Their performance is not dictate by one day's action but over a period of time.

On the other hand, there are also genuine parties that want to make profit through proper long term investment. They are more discipline and their actions are more consistent. Sometime they could also become the victims for the big boys.

I have been advocating to people to invest wisely especially the young. It is good to invest but invest with an objective. That is to make money constantly. It doesn't matter if you make only 5% for the first round. It is still a profit rather than a loss. Build experience and confidence and it goes a long way.

Below are some example of stocks that could have make money albeit slowly over time. Four wisdoms to have when investing in stock market - Patience, Conviction, Trust and Expect less excitement.

 
 






The big boys don't like to "stir" these stocks for a very simple reason. It is also the same reason make these stocks a bit boring. But who cares as long as money is made albeit takes longer time. You want to make money many times and long time, not just one time.

On a side note, let Datasonic takes a rest for now. If worry that the price will plunge, it would have plunged long ago. Have patience, conviction, trust and expect less excitement, sometime. Give yourself 2 months and if the returns failed to meet your expectation, switch and move on.


1 comment:

  1. Retail players tends to forget! Greed prevail. Cycle repeats itself!

    ReplyDelete