My Trading Adventure

Author: CP TEH   |   Latest post: Wed, 18 Sep 2019, 9:11 AM


Patience and Greed

Author:   |    Publish date:   |  >> Read article in Blog website

Morning ... I shared this one with my trading group. It is very difficult to be patient ... we want to invest ...buy-hold good stocks but then GREED seeps in ... we give in to the pressure of buying lousy stocks , hoping to profit much more ..in shortest of time.

So, if we are to think about it ...why are we in stock markets, everyone would answer to INVEST and earn some money ... money makes money concept. Well, in theory ....on surface, it sounds logical. BUT we are entice by surrounding to punt into ... say, NAIM or KNM ... or any hot-stocks you can name it now.

Then, since we do not know how to cut-loss ... we dont know what is going on as the stocks continue to surge, everyone in the watsapp or telegram group TELLING that they profitted from it ... we feel so stupid not to participate. THAT pressure could be similar to the society pressure on us to buy branded items or change a new brand car ... latest model of handphones etc etc. It is PSYCHOLOGICAL ... and most people could easily influenced or given in.

Example of such statements like ...join my group ... you can win back the fees in a single trade. See how we traded KNM so well, we bought hugely at 10cents and now at 40cents ... you can do it tgether with us too. Lets us get RICH together ...ignore those sore losers who could not understand stock markets ... we do not use FA ... nope, no complicated TA needed. We are just interested to profit hugely ... from stock markets. It is easy ... come and join in?

GREED ... always playing inside us, thinking we could out smart markets. EVERYONE is like giving us the hint that it is easy and they are profiting. NOT many would admit they STUCK up there ... or have cutloss hugely. Not many honest people in stock markets, indeed.

Let me use a random chart to show ... this is AHB, I dont really know its biz or anything as it is never in my stalk-list. In MAY-JULY 2017 ...it surged from below 20cents to 40cents level in a month. In short 3 months or so, everyone yelling how easy to double your capitals ... and must be promoted by someone or media. You were cursing yourself for missing the boat ... and jumped in around 35 cents... as some givn target price is RM1. Hence, u buy as big as possible .... ini kali la. You are desperate for money too ... you needed it fast ... it surged to 40cents .... huge profit in 1 week ... you are so proud of yourself ....but since the target is RM1, you decided to wait ....

dumped .... you are in paperloss now, checking around the forums ...everyone still holding but their cost price is lowe than yours. FEAR is inside you now since you bought with all your money in trading account. Cmon .... just this time, give me the good profit ... you PRAYED.

If you never learn how to cutloss ... or you dont know the fundmental of the companies, how do you know if you should buy big into a stock ... or sell?

Be an investor ... think long term.

That is what most of us being advised. We simply cannot deny that we are such a greedy being ... and to ask us to WAIT for crash to invest, heck ... every year they are talking of crash, it is never here. So ... lets earn money short term by trading!! Heck ... do you know that trading is difficult? Those donkeys whom you listened to ... they lied. Trading is too difficult to do it in 1 hour per day kinda part-time hobby. They advertised and lied ... you are not that naive, are you?

Sometimes we think ... should  I just quit markets now .... cutloss and wait for crash?

Easier said than done as by the time of crisis ...FEAR would take over. And patience is thinning ... without us to understand why ... when ... what.

So ... what can we advise others? In 2016 , I started to prepare for crash ... I gave many e-meeting relating to cut-loss, challenged those few who came to my e-meeting to executing cutloss. Today, they should be glad and thankful if they did ...but I believe , they dont. STUCK ... it is ok, most 80% stuck up there anyway, they consoled themselves.

Be patience ... move away from markets if you are not trading. NOTHING is cheap or worth investing yet. Then, see if you dare to come in to buy during crisis? I bet you WONT ..

Take care as market is expected to rebound from here ... for more funds to distribute their losing stocks to those ignorant ones.

Be aware.

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jeffng570 morning
23/08/2019 8:57 AM
speakup boring!
23/08/2019 12:05 PM
Taehyung Copy and paste !
23/08/2019 10:12 PM


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