An excellent story for investors

[basilio]

Hi,,

I was following up a story on an investor blog site and came across a particularly brilliant insight into investing and in particular the mental processes most of us go through as we research, buy, sell and pontificate...

I found myself nodding madly as I read this self analysis and suggest other forum members might get similar insights. It's not short but well worth the trouble.

Look forward to hearing your thoughts

Cheers

http://brokermandaniel.com/a-must-read-for-every-serious-private-investor/

_______________________________________________________________________________________

What did I find most useful ?

1) Recognizing that there is no way anyone can properly pick top and bottoms in market. Don't stress about it.
2) Being patient with shares. If the original reason for buying the shares still holds then inevitably there will be commercial success ( hopefully...) and this will be reflected in the SP
3) Take a broader perspective. Spending ones life glued to screens and being mesmerized by the minute by minutes swings in share prices is a waste of a good life.

 

[Knobby22]

Great find Basilio.

The writer is eloquent and really hits the truth.

I try to do what he is doing now, but I always seem to leasrn something new.

The latest thing is when you get what seems to be bad news. Make a decision on the reasons you bought it! But make a decision, don't wait till the market has made up its mind.

 

[robusta]

That is excellent. The main thing for me is patience, make your decision and if nothing fundamental changes stick to it.

 

[Wysiwyg]

If I was "investing" in the stock market that "traders" personal experience would not be what I read for guidance.

 

[robusta]

If I was "investing" in the stock market that "traders" personal experience would not be what I read for guidance.

What!!! sorry maybe I am slow but I don't get your point. Would love to hear what you objected to.

 

[Garpal Gumnut]

Hi,,

I was following up a story on an investor blog site and came across a particularly brilliant insight into investing and in particular the mental processes most of us go through as we research, buy, sell and pontificate...

I found myself nodding madly as I read this self analysis and suggest other forum members might get similar insights. It's not short but well worth the trouble.

Look forward to hearing your thoughts

Cheers

http://brokermandaniel.com/a-must-read-for-every-serious-private-investor/

_______________________________________________________________________________________

What did I find most useful ?

1) Recognizing that there is no way anyone can properly pick top and bottoms in market. Don't stress about it.
2) Being patient with shares. If the original reason for buying the shares still holds then inevitably there will be commercial success ( hopefully...) and this will be reflected in the SP
3) Take a broader perspective. Spending ones life glued to screens and being mesmerized by the minute by minutes swings in share prices is a waste of a good life.

Mate, this is such a load of bad advice, I am seriously thinking of reporting this as an offensive post.

This is wrong, wrong, wrong.

It's called falling in love with a share.

It's bollox.

gg

 

[Wysiwyg]

What!!! sorry maybe I am slow but I don't get your point. Would love to hear what you objected to.

Well the title lead me to the story as being related to investing and it isn't. It is a traders story about what they have experienced and what they believe is a good strategy.

One belief is this, after a lead in mentioning Warren Buffet ...

Warren Buffet never bought a share at the bottom. And he never sold at the top.
So don’t beat yourself up for not calling the bottom. In such volatile times, if you can stay within a 30% deficit on a share that you expect to deliver 100%+ profit at some point, then you are doing fine.

To me that is not investing, that is buy and hold in hope of your share turning around to double in price +. So within 30% down is okay but anymore then sell.

 

[Julia]

Mate, this is such a load of bad advice, I am seriously thinking of reporting this as an offensive post.

This is wrong, wrong, wrong.

It's called falling in love with a share.

It's bollox.

gg

Well the title lead me to the story as being related to investing and it isn't. It is a traders story about what they have experienced and what they believe is a good strategy.

One belief is this, after a lead in mentioning Warren Buffet ...



To me that is not investing, that is buy and hold in hope of your share turning around to double in price +. So within 30% down is okay but anymore then sell.

Agree. I wouldn't be holding to within anything like 30% down.

 

[Sean K]

I saw the Che photo at the top of the site and thought it was a scam so bailed.

 

[Wysiwyg]

Yes there are thousands of traders blogs on the internet sharing their experiences.

 

[So_Cynical]

This is wrong, wrong, wrong.

It's called falling in love with a share.

It's bollox.

gg

It's called backing your judgement and having belief in your fundamental assessment....although ill admit that for some its falling in love and getting swept away in the crap.

Everything in that story applied to me and my experience...great advise for value investors and low cost averaging fundamentalists like me.

 

[robusta]

Mate, this is such a load of bad advice, I am seriously thinking of reporting this as an offensive post.

This is wrong, wrong, wrong.

It's called falling in love with a share.

It's bollox.

gg

Did you miss the bit about researching the company first and having a good criteria for investing?

This from the blog:


"If I’ve learned one thing over this last year, it’s that Holding is an underrated strategy. But it’s not easy. The only way to do it successfully, is to do your research and stick firmly to the reasons you bought in the first place. It also helps to remind yourself of a few core realities when markets turn sour:

1. Accept that you have invested directly in a company at a volatile time on the stockmarket.

2. Recognise that all stocks will go up and down, and that some will experience wild swings on certain days in either direction. Nothing goes up in a straight line.

3. Take heart that lot of these swings will be precipitated by factors that are not within the control of the company: e.g. low or high volumes / sector slumps and boosts / wider market gloom or optimism / ii buying or selling / MM games etc. etc.

So really, your only hope of beating the market is to do your research, and buy or sell on the basis of that research … and the known news/facts. And, provided the fundamentals and news do not change, there is little point in selling out. Certainly, you would be foolish to take a loss on a share if the fundamental reasons you bought in remain unchanged.

How many times have people got spooked by a short-term slide, then sold up, only to see the share kick back up as quickly."

I have trouble disagreeing with any of the above.

 

[Garpal Gumnut]

That is excellent. The main thing for me is patience, make your decision and if nothing fundamental changes stick to it.

Did you miss the bit about researching the company first and having a good criteria for investing?

Its muppet theory, that all information is available simultaneously to all investors.

gg

 

[robusta]

Its muppet theory, that all information is available simultaneously to all investors.

gg

So you think markets are efficent? All the time?

Or are we playing a bent game against inside traders with no chance of beating the house?

 

[Garpal Gumnut]

So you think markets are efficent? All the time?

Or are we playing a bent game against inside traders with no chance of beating the house?

A Chartist has no fear or no need to justify.

gg

 

[robusta]

A Chartist has no fear or no need to justify.

gg

OK fair enough my reply is a A fundamental investor has no fear or no need to justify.

Life would be boring if we were all the same.

Me I would prefer to buy and hold a bit more as that would mean I made more correct decisions.

Good luck GG.

 

[burglar]

Its muppet theory, that all information is available simultaneously to all investors.

gg

Where can I view this "Muppet theory" ?

Like the OP I was nodding furiously.
If its falling in love with your share, so be it!
Can't be worse than other forms of romance.

 

[Garpal Gumnut]

Where can I view this "Muppet theory" ?

Like the OP I was nodding furiously.
If its falling in love with your share, so be it!
Can't be worse than other forms of romance.

So be it for you.

When I play texas holdem at a casino, I go in expecting to win, not just spending weeks in front of a camera.

Romance is fine, but similar to texas holdem.

Get real mate.

gg

 

[burglar]

So be it for you.

When I play texas holdem at a casino, I go in expecting to win, not just spending weeks in front of a camera.

Romance is fine, but similar to texas holdem.

Get real mate.

gg

I am told that shares don't love ya back!!
Ok! So the only animal that love you back is a dog!

Sorry to offend any cat lovers, I am just not a cat-burglar

 

[Garpal Gumnut]

I am told that shares don't love ya back!!
Ok! So the only animal that love you back is a dog!

Sorry to offend any cat lovers, I am just not a cat-burglar

However with shares when you fall out of love, with a mouse click you can terminate the relationship.

I don't like cats neither but would never do them any harm. I believe they do not like the mouse.

gg