Posted by 3iii > 2018-01-31 12:05 |

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22 comment(s). Last comment by 3iii 2018-02-05 11:39

3iii

12,917 posts

Posted by 3iii > 2018-01-31 15:14 | Report Abuse

>>>8 To be able to make money from the stock market, you must outsmart the losers. <<<<


This assume that you are playing a zero sum game. One wins and the other loses.

But if you invest carefully, in selected stocks for the long term, you are actually in a positive sum game.

Your fight is with yourself. Your challenge in you is how to get better return with minimal risk.

3iii

12,917 posts

Posted by 3iii > 2018-01-31 15:17 | Report Abuse

>>>>9 There are more losers than winners. Losers are born every day. Otherwise, there will be no more ikan bilis for big sharks to eat. <<<<


Again this is probably referring to trading in the stock over the short term.

For long term investors, ikan bilis or sharks do not matter.

He / she will buy into a stock when the price is right and will sell a stock when the price is right.

He too will not be perturbed even if the stock is not traded in the market for the next 5 or 10 years, especially, when he knows his company has a great business with durable competitive advantage. He can often hold this for the long term; rarely have to sell.

3iii

12,917 posts

Posted by 3iii > 2018-01-31 15:22 |

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3iii

12,917 posts

Posted by 3iii > 2018-01-31 15:28 | Report Abuse

>>>>What is Luck?

To be successful in share investment you must have luck. What is luck? You may think that luck comes from the sky or heaven.

No! To be able to make money from the stock market you must outsmart the losers.

To outsmart the losers, you must have luck and the definition of luck is when preparation meets opportunity.
<<<<



I shared the same definition on luck.

Luck is when you are well prepared and seized the opportunity when this presented.

Preparation is the main and the harder part. Being well prepared is important as when opportunity presents, you have the courage and you are well placed to benefit from this.

Also, opportunity does not present everyday. Be patient. For many, their big fortune were built on a single opportunity. Those failing to seize an opportunity at the appropriate time, may not have another opportunity ever again.


Preparation is 99%. When you are well prepared, courage to seize is virtually automatic. You see and you act immediately knowing all the risks and rewards associated with the action.

3iii

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Posted by 3iii > 2018-01-31 15:38 |

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zoozooka

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Posted by zoozooka > 2018-01-31 15:41 | Report Abuse

People want the real dirty secret and way of making money

Not the book theories for the sheep

chrisyap

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Posted by chrisyap > 2018-01-31 15:41 | Report Abuse

1. Long term investors, like Warren Buffet make more money than short term investors.

13 You must not fall in love with the shares you have bought. You must sell to take profit. You must always bear in mind that profit is not a dirty word. When to sell is always a puzzle.

think the above 2 a bit contradicting, must love the counter or company for a reason before we buy, such as good FA, if the company continue to perform, need to fall in love with this company else one won't hold for long term. buying a stock is like choosing a wife, you must love your wife. hehe

3iii

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Posted by 3iii > 2018-01-31 15:44 |

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3iii

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Posted by 3iii > 2018-01-31 15:46 | Report Abuse

>>>>zoozooka People want the real dirty secret and way of making money

Not the book theories for the sheep
31/01/2018 15:41<<<


It is a brave chap who has a long term portfolio fully invested (like Buffett).

It is sheepish to be in and out of stocks in the short term.

Do you disagree?


I am sharing personal experiences.

3iii

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Posted by 3iii > 2018-01-31 15:48 | Report Abuse

By the way, Buffett's wealth is 90% invested in companies and stocks (under Berkshire Hathaway).

3iii

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Posted by 3iii > 2018-01-31 15:55 |

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3iii

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Posted by 3iii > 2018-01-31 15:59 | Report Abuse

>>>2. Fund managers often cannot beat the stock market index. <<<

In your early stages of investing, you may not have the knowledge or the temperament to manage a portfolio. Investing into a mutual fund maybe a good start. This provides diversification of the small amount you invest and also allows you time to learn about investing in stock market.

The smarter investor should quickly graduate to manage their own small portfolio of stocks. The 1.5% or 2% fees incurred by funds soon add up to be a large amount over many years.

3iii

12,917 posts

Posted by 3iii > 2018-01-31 16:11 | Report Abuse

>>>9 There are more losers than winners. Losers are born every day. Otherwise, there will be no more ikan bilis for big sharks to eat. <<<


Many lost money in stocks for 2 big reasons:
1. They choose to buy low quality companies. (Perhaps they bought companies they thought are of high quality when in fact, they were not).
2. They overpaid to own them.


Also, they are short term in their "investing". Short term trading (day trading) is essentially a zero sum gain. Factor into this, the transaction costs, and you end up playing a negative sum gain. Yes, the infrequent trader can occasionally boasts of gains in specific stocks. However, should he/she indulge in this negative sum game frequently enough, on an aggregate, he/she is likely to be losers. The casino is a negative sum game, for those, who need an analogy.


Another reason for people losing in the stock market is they time the market. They get enthusiastic and buy when the market or the stock prices are going up. They get depressed and sell when the market or the stock prices are going down. This is buying high and selling low, the reverse of what they should be doing to be profitable.

Peter Lynch compounded his Magellan funds 30% or so yearly for 13 years. Yet to his chagrin, when he did an analysis, most of the investors into his fund lost money. They bought at the time when his fund was riding high (buying expensive) and sold when his fund was collapsing (selling cheap). Thus, despite his superb performance as a fund manager, the majority of his investors were losers. Once again, the importance of preparation (knowledge) and knowing when to seize an opportunity are so important for successful investing.

3iii

12,917 posts

Posted by 3iii > 2018-01-31 16:21 |

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Posted by Grace663663 > 2018-01-31 17:04 | Report Abuse

3iii @ Your explainations to KYY's blog. are Super. KYY is a great investor filled with knowledge and Wisdom. We need more advice from great Investor like him, who knows both the FA and TA of the stock to stay above the stock market.

3iii

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Posted by 3iii > 2018-02-01 19:16 |

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pang72

49,367 posts

Posted by pang72 > 2018-02-01 19:21 | Report Abuse

3III, uncle koon specially dedicated to you of above article.

Your Top Portfolio.

3iii

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Posted by 3iii > 2018-02-01 19:34 | Report Abuse

Posted by pang72 > Feb 1, 2018 07:20 PM | Report Abuse

https://klse.i3investor.com/blogs/koonyewyinblog/146022.jsp


I think his message is Nestle is too expensive at its present valuation. I agree.


He asked to sell this stock (from my reading).

Well, I think you should not buy but as for selling, it depends on your investing philosophy and strategy.


:-)

pang72

49,367 posts

Posted by pang72 > 2018-02-01 19:50 | Report Abuse

3iii, Nestle is your top portfolio. Why you are not encourage us to buy? AS of selling, Why you are not encourage us sell if you agreed It is high?

pang72

49,367 posts

Posted by pang72 > 2018-02-02 09:46 | Report Abuse

3iii,
Nestle up 2.4 today.
This stock looks potential?
Kyy in another way free publishing this stock. I guess.

3iii

12,917 posts

Posted by 3iii > 2018-02-05 11:39 | Report Abuse

>>>>14 I must admit my mistake in being so bullish on Hengyuan.<<<<


KYY admitted his mistake of being too bullish on Hengyuan.

Allow me to postulate on his thinking. Presumably, his premises were Hengyuan was a good business and now available at such a low PE.


Did he make a wrong assessment of Hengyuan's business? Did he think Hengyuan is a good or great business, when in fact, it is not so?

Or, did he make a wrong assessment of Hengyuan's valuation? He looked at Hengyuan's PE and related this low PE to its recent good earnings. The PE was so low, and he was elated for finding something so cheap.




>>>> I wrote a few articles with good intention to help readers to make money. As a result, I did not sell when it went above Rm 19. I am too egotistic. But when I see a sudden trend reversal, I started selling. I have to sell at lower prices. <<<<


I cannot comment intelligently here.

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