Confession of a Gambling Investor

Even thought an investor did his homeworks to ensure that the stocks he buys are fundamentally sound, one cannot ignore the fact that Mr Market has his ideas. Share price does reflect the business fundamentals of the Company, but only if it is in a stable market.

dragonjoe23 says: Seriously, I dont think that bugger did his homework. He simply doesnt understand an economic nature as well as the flexibility of market behaviour. Fundamentals are important but not to the aspect of depending on it and increasing bets each time. When the counters goes up, he buy more and that means more money. When the counters goes down, he average down and that means even more money. When the market fail and drop continuously for days and weeks, it would be almost a complete wash out. He deserve to be run down. There is simply no common sense in that fella. You can\'t blame the broker for not checking his financial constraint but sometimes, the clients actually requested for more. I advised one of my female colleague once, 2 years back when i was in shanghai. I asked her how she manage her portfolio, she replied that she is keeping them as long as it takes and she have been investing since during the 80s. I told her this... You are going in for a big big trouble if you doesnt know when to advance and when to retreat but allow your investing capital as a sitting duck for people to shoot at. After a while, she realised that she have not been investing smartly and have began changing her investment method. During the last 2 wave of sell down, her portfolio suffered but not as bad as it is supposed to be because she learned the way of securing first and advancing later. When you dont take action to secure your investing profits, you are bound to lose badly..

Our dear friend, dragonjoe23 has very harsh words for this poor chap. \"He deserve to be run down\".... Does that mean that dragonjoe23 has not been whacked hard hard by the stock market before? Has dragonjoe23 been a sniper with one shot one kill track record? I think nobody deserves to be run down by Mr Market. Unfortunately, you have to pay tuition fees to learn the lessons in the equity market. I learnt my lessons the hard way, losing all my university tuition fees and having to get my mother to bail me out with her \'coffin\' money. My investments into Chuan Hup, Hersing and HG Metal have given me many many folds of returns. I have never mastered the art of buying low and selling high. My business kept me too busy. In fact, I came up with my own philosophy -- BUY LOW and NEVER SELL.

i do not know whether \"buy low and never sell\" is a correct and alternated style. i have bad experience of buying low and sell it lower after a few years. i believe in the rule of \'cut your loss\" in any investment so that you can come back to market again. lastly, thank you for the sharing.

I was checking with my broker. Seems that there are still retailers punting the market. Sigh... the sooner, the punters are wiped out, the sooner the bottom will come. :woohoo:

I really wish them luck...once all the punters are gone...yes you\'re right...the bottom may not be far...there is still too much activity and S\'pore has not yet felt the full brunt of the credit Tsunami. Looks at the REITs which was just hammered left right centre and yet the real property market prices are still holding up. Once prices start to move downwards in a big way the banks especially the local ones will start to feel the BIG write downs of mortgage foreclosures. I\'m still hoping that it would not happen judging by the demand for the mass market but the high end segment will bear the full brunt....unfortunately..