A WORD FOR THE FUTURE STOCK TRADERS

THE BAD NEWS AND THE GOOD NEWS.

STOCKHACKER
Publish date: Sun, 01 Mar 2015, 12:00 AM
A personal opinion in stock trading

The world's money printing ever QEs and low interest rates lure the public out of the safe haven investment and into stocks, should we join them or go to the other way?

It makes no sense to risk 100 percent of my wealth on conservative investments that might pay me 10 percent return -- if I am lucky. But that couldn't possibly guaranteed too. To me it makes more sense to allocate 10 percent of my portfolio to speculations that can generate gain/yield greater than 1000 percent. 

If you care about your own economic future. 

Beware of self acclaimed specialist, IB analyst, sub.shareholders desperately promoting shares they already owned. You will sense there's a conflict of interest breached. It's all about timing. And if we chase momentum and excitement, -- if we run with the crowd, -- buying when others are buying, we are guaranteed to lose. In this line of work, we're either a contrarian or road kill.

Real returns are made by ignoring the passing herd and looking at what they trampled over instead. 
The chemistry of success is constantly hard to analyse. We are nearing the trailing start of the Greater Depression, it's going to be much worse and much different from 2008/09.  A time that will make the 2008 Global Economic Meltdown a kid's baking soda volcano. 

The bad news: Only the well prepared will get through it without painful financial damage.

Be sure to know all the facts before you dip in the stock market. Apparently part of it lies in the nearly irresistible something for nothing. The market, outward appearance never changes, it continues to look like the sweetest something for nothing deal on earth, the easiest money game of all. The hope rises again and the dream lives on.

Subconsciously we know, the stock market never one tenth so easy as it seems, this occasionally, it drifts out, but often dismissed as hollow pessimism. Almost every finance intellectual, constantly assures us, the stock market is investing, not gambling. That's what they are telling me and you, that's what nearly everyone seems to believe. 

That's why many are addicted to the stock market. This addiction is known to be incurable. The speculative approach to the stock market is extremely, and even frightening risky. One false step, one thunder bolt of ill fortune instantly smashes most of them flat without mercy. But;

The good news: The well prepared can come out far wealthier than they are today. 

This year, priority is, I am not an investor, I am a speculator. I am not interested in blue chips and their dividend at this multiple all time high environment. I will focus on the proposition that cost a dime and pay a dollar.To me, it's strategy, timing, guts and money and that's what it takes. There has never been any rule to plan my course of action. I can't time the market, but I know there will be distortions, when government /policy makers screws something up, (they always will) it's going to create distortions, plenty of it, and turns out to be a great opportunity to me.

The passion of discovery, a challenge to test my judgment, that's what gives me the greatest thrill. A fervour by making something out of nothing. It may be that a speculator's storyline cannot be understood in rational terms. I have attempted to analyse the transformation in a logical way, but it hasn't succeeded well, neither had anyone else. 

My hobby becomes more significant than the task. And so far I haven't been able to retire completely. I don't know how to quit this. A speculator never does. I've got to know more. I like the interaction. My range of interests is huge and I  was curious about everything. 

Right away is the great time to put your friend, "Volatility" to work for you.

Sure, I made mistakes, plenty. Only a liar would say he never did. A life where we broke every rule taught by Harvard Business School, except the one that says, " You should make money " When one problem has been swallowed and digested, I goes out and look for the next Volatility. By its very presence, I assaulted those Volatility as opportunities with my mindset.

The foundation of being successful is dead simple. Pull in your decision, then following it with discipline and take control from there. 

What one man can do, so can another.

2015 New year, new resolution.

Happy Speculating!


 

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Discussions
2 people like this. Showing 2 of 2 comments

tpchuayap

thanks for sharing

2015-03-01 12:16

always_steady

anyone download the book (The complete guide for day trading)?

2015-03-02 15:58

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