- Joined
- 28 December 2013
- Posts
- 6,392
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Risk
Nothing can be guaranteed when entering the market and the risk is very real. Smart traders/investors do not forget this, and that is why they use every means at their disposal to minimize the elements of risk by investing in the most efficient way.
The end game
The idea is to get the maximum return for the amount of risk taken for each dollar spent.
Skate.
@Wyatt you remarked that "Amateurs on the other hand, 'fall in love with their stocks'"
New suckers
New batches of suckers are entering the markets every day who fail to educate themselves before buying stocks they know or have fallen in love with..
Cruel, Unkind and Dangerous
The Financial Markets are a Cruel, Unkind and Dangerous playing field, one place where the newest amateurs are generally fleeced the most brutally, usually by those who know the rules of trading.
Skate.
@rogue1 when you 'like' one of my posts (I encourage you to 'like' as many as possible) I get an "Alert" and those 'Likes' gives me a direction for future posts.
Meaning
I would rather post on subject that others find interesting rather than what interest me.
Skate.
This thread title reminds me of the advice Dr Spooner gave to his wife...
I made a post in the "The Education of an Investor" thread & I have decided to post it here as well (The reason: some members read some threads & pass over others)
Financial statements
Understanding a company’s financial statements will help shape your research, as it will allow you to become aware of certain facts.
Revenue flow
You may think you know how Capilano Honey Ltd (CZZ) operates because you buy their product from Woolworths or you may even think you know how Woolworths Group Ltd (WOW) operates, because you buy your groceries there, but can you clearly articulate how one dollar of revenue flows through either business?
Investment risk
The more you understand how a business operates, the more you become aware of how little you understand which further ads to the investment’s risk.
Skate.
Time may also be a constraint for an individual investor due to other committments eg work or family.The end game
The idea is to get the maximum return for the amount of risk taken for each dollar spent.
Investment risk
More on Capilano Honey, Woolworths & investment risk
Familiarity
One myth that many investors find particularly hard to resist is “Buy what you know.” Many fall into the trap of buying a company’s stock simply because they are familiar with it and like the product. Typically they fail to understand that good products or services don’t necessarily correlate to a good stock. However, they are comforted by the familiar. Familiarity can be a dangerous thing.
Skate.
Skate
Thank you for the accolades, But you can stop now!
Shout Fire in a building full of people and they will in the large majority run for the exits.
Drop 1000s of $50 or even $10 notes on the ground and people will come out of no where to pick them up.
Good examples and both Trending scenarios …….
It gets a bit harder to read when you are in the same building and "Drop the cash just after you call "Fire"
Mature Trader
Me!
Take all opportunities long or short term
Cars
Don’t get into one unless you know the destination.
Mature Trader
Me!
Take all opportunities long or short term
Cars
Don’t get into one unless you know the destination.
Cars
I said to a girlfriend once "you either fork it or walk it"
Her reply
"Well I ain't walking"
Memories
tech/a you sparked a fond memory for me..
Skate.
A bird crapped over my bonnet once!
I never took her out again!
Happy New Year everyone!
I feel we need an inspiring quote to get us off on the right foot:
“There are no great men – only great challenges, which ordinary men are forced by circumstances to meet.”
Sorry, that's all I got. I know @Skate will have a good one.
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