Simple things in life is best

 

Trying to outsmart mr market is an exercise in futility. If they go crazy, the is nothing you can do.

 

I really don't care much about what institutions are buying and selling

 

Who is including what in msci

 

All those are useless distractions

 

A pure waste of time and effort in the long run

 

If you ask any technical trader, they will tell you the most important thing is your stoploss protection

 

And protection of capital

 

This means that they already know and accept that they are going to be losing money

 

And their hope is that they get more winners than they do losers

 

But if you ask yourself, which is easier? To just buy and hold hartalega and topglove for ten years

 

Or to buy sell buy sell buy sell pips

 

Those who have listened and followed this advise and investing method would know what I mean

 

https://klse.i3investor.com/m/blog/philip2/2019-01-22-story-h1456976645-StoneCo_IPO_How_I_use_business_sense_to_understand_why_Berkshire_finall.jsp

 

Take this stock for example, when I first posted this stock, everyone was saying it is overpriced and not worth buying etc, Jin Hou said that he found something similar that was cheaper and valuation ( may I finally know what it was?), And in a way he was right, as the share price had gone very high up, and went very low down a few times since the time I bought it. But now, 2 years on, what do we do see? The share price going from 20 to today's price of 74 USD.

 

What does it tell you? Being able to buy and hold great companies is far more important than "diversifying risk" which is the core mental model of traders and penny stock investors

 

Traders know they are losing money, so they buy even more stocks to minimize risk. Penny stock investors also know they are losing money, thus they also buy even more penny stocks to minimize risk.

 

But does this really sound rational to you?

 

If you own a mcdonald's drive through in the the middle of federal highway, would you really want to sell for a measly 5%?

 

If you don't do this in real life, then why do you this when buying stocks?

 

So the right mental model to make real money is to do the total opposite, instead of trading so much and make small money, or buying so many penny stocks that don't go anywhere, instead of buying stocks without even understanding what they do, why not be rational and think first.

 

Flip the script, instead of buying 100 stocks and understanding 1, why not try to understand 100 stocks and finally buy.... 1.

 

Put your area of competence into it

 

I can guarantee you will enjoy the same returns that I do over time.

 

Books to read today.

 

 

Apologies for the long delay in writing articles. I seem to be sharing and answering too many questions on telegram to the point that I have been neglecting my readers here.

 

My trackable portfolio

https://klse.i3investor.com/servlets/pfs/120720.jsp

 

My foreign positions now:

Stoneco bought jan 2019

Palantir  bought Nov 2020

Uniqlo.    Bought April 2020

 

Sold positions

Feihe.      Sold oct 2020

Novavax sold oct 2020