<< We r into a biz of cutting losses according to stock mkt legend, Bernard Baruch >>

PureBULL ...

Publish date: Thu, 31 Jan 2013, 12:51 PM

We r into a biz of cutting losses according to stock mkt legend, Bernard Baruch.

It is just old normal to have made wrong bets.
According to teachings of stock mkt expert Bernard Baruch, adviser to 3 US presidents :

" If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong ".

Doing the math, that means we r into a biz of cutting losses, 5 to 7 times out of 10 stocks.

And in a down trend, 1st loss is the Best loss !

For some of us who r long enough in the mkt, we can recalled the worst period in the history of KLSE during the Asian Financial Crisis. KLCI crashed from a high of 1278 points on Feb 1997 to a low of 262 points on Sep 1998 in the longest recorded purebear cycle of 18 months. Mind boggling to imagine a drop of more than a 1000 points, from 4 digits to 3.

How did those involved handle this ?
n how did I able to manage this great escape ?

Discussions

Be the first to like this. Showing 10 of 10 comments

Ram Cheong

Cut loss is a painful act but sometimes having small pain to escape bigger pain . .......... can our market improve next week , will there be a mini cny rally this round or the market will get even worst , so to cut loss now or to expect for better next week , this is the game of share market .

2013-01-31 14:40

Desmond Liew

Cut Loss needs to be trained as it is not an easy task..

2013-01-31 21:49

usry

Although it pain but always work. Early of this month i loor rm200 hn Perisai but i luckycoz if i not cut loss may be today (30 jan 13) i will lost more than rm1k.
During i decide to cut loss- i feel frurtrated,useless,sad and depress. But i need to take it. May be next week if 'good feel factor' come in our market- i have money to buy it again at lower price..

2013-01-31 22:00

Desmond Liew

I read one article & it says "dont fall in love with any counters, After playing or being played, just dump it & look for new one",,hahaha,, all investors here are playboys,,

2013-01-31 22:07

Desmond Liew

I made a huge lost in Takaso, 38% bcos i was deeply inlove consequently i got to pay heavy price. Now i m a cold blooded guy who gets used to cut loss ...

2013-01-31 22:13

PureBULL .

Desmond Liew, Why do u want to buy so many Condoms ?

2013-01-31 22:33

Desmond Liew

hehehe,, i was forced by alot of sexy beauties who dumped me like hell .. learn from mistakes made..

2013-02-01 09:15

razmry

Lesson Learnt... or Lesssss on Learnt...

Ha!x5... today no market...

2013-02-01 09:22

BursaBullTrader

Last time it took me about 6mths to practice real trade and do cut loss to change my mindset! Now cut loss to me is like drinking water.. fast and furious one... no feeling one... :D

I know those still incur losses has very hard to key in sell cos sth sth there stuck at ur heart and mind that won't let you do it... cos why? maybe u sayang the stock or you still cannot admit you already loss the game and maybe you hope the day will come again.... hehehehe

2013-02-01 09:25

PureBULL .

BursaBullTrader,
Well said.
Overly 'gungho' on FA. Nobody ever say taken to holand by FA.

2013-02-01 09:38

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