Hi, all readers and my dear friends, 

Hope everyone is having a happy and peaceful spirit.

What I'll outline now is the framework and system behind every successful and persistent methods that I ever purposefully accomplished in my life as an investor.

THE BASIC STYLE OF INVESTING.

My peculiarity is I don't have a particular style of investing, or more exactly I try to change my style to fit the conditions. If you look at the history of a marketplace, it has changed its character many many times. I do not play according to the given set of rules, I look for changes in the rules of the game.

THE INSTABILITY IN THE STOCK BEFORE THE CRASH. 

I didn't insist there is a flaw in every foundations of economic theory. It assumes the supply and demand curves are independently verified. The shape of demand curve may be altered and influenced by the price movements. That happens particularly in financial markets, where trend following speculation is rampant.

Most people are buying shares not because they want to own the underlying security, but because they want to make quick profit on them. The same may be true of real estate, currencies or even art. The prospects for profit depend not on the intrinsic value of the underlying objects, but on the intention of speculating in nature.

Moreover, the more people adopt it, the more rewarding it becomes., because the trends in prices as an ever more important factor in determining the trend in prices. Price movement fed on themselves until prices become totally unrelated to intrinsic values. Eventually, the trend becomes unsustainable and a crash ensues.

INTUITION IS IMPORTANT TO ME.

I work for hypotheses. I form the thesis about the about the anticipated sequence of events and then I compare the actual course, if events with my thesis, that will give me a criterion by which I can evaluate my hypothesis. This will involve a certain element of intuition.

But I am not sure the intuition is so great, because I also have a theoretical framework. In my investing, I tend to select the situation that fit into that framework. I look for conditions of disequilibrium. They send out certain signals that activate me. So my decision really made using a combination of theory and instinct. If you like, you may call it intuition.

IMAGINATION AND ANALYTICAL ABILITY.

I think analytical abilities are rather deficient,  but I do have a very strong critical faculty.  I am not a professional security analyst. I would say,  an insecurity analyst. I recognize that I may be wrong.  This makes me insecure.  My sense of insecurity keeps me alert, and always ready to correct my errors. I do this on two levels. On the abstract level, I have turned the belief in my own fallibility into the cornerstone of an elaborate philosophy.  

On the personal level, I am a very critical person. I couldn't recognize my mistakes if I couldn't forgive myself. For others, being wrong is a source of shame. To me, recognizing my mistakes is a source of pride. On we realize that imperfect understanding is the human condition, there is no shame in being wrong, only in failing to correct our mistakes.

YOU  MUST RECOGNIZE YOUR MISTAKES QUICKLY.

As I told you before, I work with investment hypothesis. I watch whether the actual course of events corresponds to my expectations. If not, I realized I am on the wrong track. When there's a discrepancy between my expectations and the actual course of events, it doesn't mean that I dump the stock. I re -examine the thesis and try to establish what has gone wrong. I may adjust my thesis or I may find there are some extraneous influence that has come into the picture.

I may end up adding to my position rather than dumping it. But I certainly don't stay still and I don't ignore the discrepancy. I start a critical examination.

THE JOY OF GOING AGAINST THE HERD.

Being critical, I am often considered a contrarian. But I am very cautious about going against the herd. I am liable to be trampled on. The trend is your friend most of the way. Trend followers only get at inflection points. Most of the time, I am a trend follower, but all the time I am aware that I am a member of a herd and I am on the constant lookout for the inflection points.

SELF CONTROL AND DETACHMENT.

Detachment, yes. Self control, no. It hurts to lose money and it gives pleasure to win. There is nothing more self destructive than to deny the feelings. But sometimes when you are under great strain, the need to hide it may make the strain more intolerable.

I remember an occasion, early in my career, when I was practically wiped out all in my personal account, yet I had to carry on if there were nothing wrong,  the strain was unbearable. I hardly bring myself up. That's why I encourage my associate to share their thoughts, provided they are willing to recognize that they have problems. 

IDENTIFYING A GOOD CHARACTERISTICS ELITES. 

Strangely enough, the most important aspect is the good characteristics people whom I can trust, are those are the people who I want as partners. There are incredible people whom I don't trust, whoever they are. I was once asked about the importance of characteristics. I have to say,  one person's character is by far the most important criteria to become a successful investor.

YOU CAN'T TRADE UNLESS YOU HAVE A PLAN.

To be successful, any investment system must have represented Praxis at its best. You cannot trade the plan unless you have a well prepared plan. You cannot have a great plan until you can conceptualized or develop a philosophy of the market.

Till then, invest wisely.

 

P/s: I question how many of you are thinking the same thing at the same time. Trade well and wisely. 
To the bull, show me your moneis, capability,  contribution,  I show you the how, where, what at one discounted Placement, Get me!?  
Pay close attention, invest wisely, but pantang? It dont help much.