Greed and fear
Say you’re a young-ish investor like me, with 30 years of earnings ahead, yet already holding a reasonable portfolio.
If you’re fearfully greedy, then when markets are rising – as they did since 2003 – you’re glad your money was invested instead of spent on holidays and TVs.
That’s greed taken care of. (Greed is the easy bit!)
However, you should also be fearful of sudden reversals that rob you as quick as a pickpocket.
In the stock market, money disappears like in Tommy Cooper‘s magic tricks: “Just like that!”
Of course nobody is complacent when markets are consistently falling. Instead, the fear often gets overdone.
Yet if you’re young and well-positioned, you should be glad you’ve got the chance to buy the same shares you were buying last month for 10%, 20%, or even 50% less than before.
You’ll be scared, too. Your new ‘bargain’ shares could halve again in a truly vicious bear market.
The greedy bit is thinking about your future long-term gains. The fearful bit is not over-doing it in the short-term.
http://monevator.com/being-fearfully-greedy-why-i-buy-in-bear-markets/
calvintaneng
It is easy to say "We buy low and sell high".
In reality it is Very hard.
Put it this way.
Will you buy Singapore Sentosa Lands When it was called Pulau Belakang Mati? In a time when prisoners were executed there? Land prices were then at its lowest. You can get it for 1 cent psf and sell it 70 years later for RM7,000 psf! 1 cent per sq ft? Probably nobody even bothered!
Will you buy New York Lands just after 911? When 2 planes Crashed into Twin Towers. Many sellers looking for almost zero buyers then.
Well, on December 15th, 16th & 17th 2014 80% to 90% of Bursa Shares Dropped to Its Lowest Bottom for the year. PM Corp was 17 to 18 cents only. Kbunai dropped to the year lowest at 5.5 cents. IFCA, OKA & Benelac fell below 60 cents.
The times were indeed fearful. People were throwing like no tomorrow. But that was the time to run? Many did! I heard almost 99% of the people saying, "Buy now? It will get cheaper". Most stock brokering houses like UOB Kay Hian, OSK, KN Kenanga, CIMB, Hwang, Inter Pacific were quite devoid of people then.
But that WAS THE TIME TO BUY!!
YES! YES! A THOUSAND TIMES YES!
DECEMBER 15TH 2014
DECEMBER 16TH 2014
DECEMBER 17TH 2014
AT THE BOTTOM OF THE YEAR 2014 WHEN BARGAINS WERE EVERYWHERE ALL HAVE FLED IN FEAR!
How to Buy When You Are Looking At Flying Arrows Coming Towards You!
As Mark Mobius put it.
It's like something flying towards your face. Instinctively you wanted to duck!
But you grin you teeth. Will it hit my face? Ha! There is the natural fear of being hit badly and get injured! Preservation of life is instinctive! Sell at the bottom lest we finally lost all?
So Mark Mobius doesn't duck his head. After Lehman Brothers' Debacle He SAW Great Bargains in Emerging Markets.
So to buy Low We MUST GO AGAINST OUR OWN NATURAL INSTINCT!
WE HAVE TO GO AGAINST OUR FEELING OF FOLLOWING THE CROWD IN EUPHORIA
WE MUST GO AGAINST THE FEARFUL CROWD AND BRAVE IT!
ALL THESE ACTIONS ARE NOT NATURAL.
NOT NATURAL, CRAZY, ECCENTRIC, THE LONE RANGER, "SOR CHAI"?
WHATEVER YOU CALL IT. THIS IS THE WAY!
THE ONLY WAY TO BUY LOW!!
Do YOU get it?
2015-04-19 09:54