STOCKHACKER
Publish date: Thu, 23 Apr 2015, 12:01 AM
A personal opinion in stock trading

The central bank high is euphoric .The crash and burn are equally epic. 

1. Are you looking for stocks trading at or near all time high or anything being cheered on by the financial media, trumpet by a noble investors and major bank analyst? 

2. Or are you watching for stock affiliated with max pessimism? And there is always a bottom of the barrel crisis assets somewhere in the world where you can buy cheap from shell shocked investors that just wanted to get out.

Either one, Investing is all about price. To me, I'll  buy if it is cheap enough. At a low enough price, the downside become negligible --- the potential reward becomes vastly greater than the apparent risk. If market's history has taught us anything, it's that great fortune is made by buying when fear rules the day. 

Speculating in a fear market is the way to profit from contrarian thinking. Buy when everyone else wants to sell. Sometimes they will accept next to nothing. This type of information you won't find anywhere else. Certainly not in the financial mainstream media nor in any otherwise financial newsletter or research publication.

Spot for any shareholders tussle, for example Herbalife(HLF) and.rock bottom Seadrill (SDRL) that already covered last.month. Our task is to look pass 
the headlines to find the best investment in the world for our capital.

We look for trouble because throughout history and around the world, the greatest investment and wealth creation has been found in moments of distortions and crisis. And the flow of such opportunities is never ending.

If your potential investment meets the simple test making most people, including your close friends, think you're a bit crazy for even thinking about it, then you might be onto something.

Keep digging for information. Acting for facts that general investor sentiment is overlooking is what being a contrarian is all about. That's how exceptional profits are made.

Of course you shouldn't buy just because the price has dropped through the floor or just because an investment has become unpopular. Some dangers are real and sometimes a danger is underestimated.

To succeed as a speculator, you must gather the facts and weigh them carefully. When you know you have measured, weighed and assessed the problem that caused the market so worried, you'll believe in your thinking strongly enough to buy even with the frightening images on TV have everyone else selling. 

You will be able to look past the scary headlines and mainstream media's shallow stories and profit from the real economic forces and political forces at work. 

Our goal is profit. The target may be stocks, commodity, ETFs and mutual funds. It could be even an option or future contract, if that's a best way to capitalize on the trend. Whatever your plan is, you must know how to get into it, at what price and what to avoid.

If you have an advance brokerage account, you may consider ; Russia, Cyprus, Greece, Argentina and a few badly distorted economic country. 

With all the chart's wedges and triangles 
around the corner, be careful what monkey you invite to latch onto your back....

Big move ahead? I short it.


Till then, good luck and happy investing.

 

 

 

 

 

Discussions
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Kevin Wong

Buying quality and growth stocks at or near their all time highs and holding 'em for the long term, may not bring exceptional profits, but at least and hopefully it won't attract the sort of vibes one may attract from distress sales. But i have to admit, i don't know how this kind of law works, or do it actually exist.

2015-04-23 19:11

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