I never realized just how puny and insignificant I am

Stimpy said:

Where does one draw the line between the patience needed to ride out short term volatility and the wishful thinking needed to wait for the stock you excitedly bought at a record high to reach a new record high?

If I knew the answer, I'd tell you (and be a best-selling author)

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It's drawn when you reach the point where buying stocks is no longer "exciting" and you just do it, as a part of your day.

I guess the same old story of if you play with fire.....you should expect to get burnt.

First, this is a tricky game we all are playing, even that we think we sometimes are invincible & know it all but no one can still say that they don't lose.

I realised after long time trading that best technique is to cut losses "sharply & immediately" while its on the way to get ugly.

I'd rather at any point lose couple of hundreds on fees plus few hundreds on loss rather than see my shares drop down thousands in hours, you may call me paranoid but I'd rather be proven wrong & buy my shares again but then I'll make sure this is not a dive.

I was in the big decline in AEX few months ago & also in GPN at time of collapse, yes I lost money but I was out immediately when it started to look ugly.

As for who are those buying in the way down, these are the ones who try to catch a falling knife, call them the circus pros or magicians, they're willing to take risks by accumulating in the way down hoping for a few points reversal which we all must admit usually happens, nothing falls down in a striaght line.

Also, there are plenty out there which were stuck on the highs with massive quantities & thier exit plan was destroyed by the fast decline, they try to do what we call prevent the "free fall" of the stock, GPN could've gone worse if it wasn't for plenty who supported & kept buying on early to mid 5c, so those are the buyers, most support their high buys or/& lower their avg.

Don't think they'll lose Just wait & see, these guys have full pockets, no worries about money or time, they won't fight the war when a full army of sellers are fighting them, they'll wait on a cool calm no volume day & easily push their way up point by point, until at some point you & me may get in again & help push it higher, if they succeed then they make some money as they were the only ones buying on lows, if they fail they get out even or with little loss. Because wins in that type of trading requires patience, guts & capital so not many do it & hardly it fails as buyers get to buy their way higher while everyone else is waiting to be tricked again. so even if the stock itself is not worth more, they keep buying & make it more expensive so they could sell what they have from the highs & the lows with little profit - if they couldn't go for long- or with a lot of profit if somehow many joined them specially day traders.

cheers,

I disagree with a lot of the 'trading' techniques boosted and implemented on this site. When this market turns to bear phase - many will be better served 'trading' horse racing and football on betting exchanges.

But I would like to add; that the moment you feel the opposite of 'insignificant' in any market is the moment you have a parcel that is 'illiquid'.

Whales can feel comfortable swinging huge lines in quality stocks like BHP - but can quickly have their bums handed to them on a plate when they have a position equivalent to 4 days volume in something getting belted.

Dont worry too much about 'insignificance'

By the same token, never 'buy' what you cant settle

Stimpy said:

Where does one draw the line between the patience needed to ride out short term volatility and the wishful thinking needed to wait for the stock you excitedly bought at a record high to reach a new record high?

If I knew the answer, I'd tell you (and be a best-selling author)

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Just quietly it has something to do with fixed fractional positioning and activating stop losses!

constable said:

Just quietly it has something to do with fixed fractional positioning and activating stop losses!

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Alternatively, it has something to do with buying assets that have an actual value based on current and future cashflows.

Which has nothing to do with the potential for a bigger idiot coming along to buy the asset on a hype driven whim.

Sentiment is fleeting - value is real.

BSD said:

Alternatively, it has something to do with buying assets that have an actual value based on current and future cashflows.

Which has nothing to do with the potential for a bigger idiot coming along to buy the asset on a hype driven whim.

Sentiment is fleeting - value is real.

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Hmmm...... smells like hlx

"We are but grains of sand on the beach", some may be bigger and tougher grains of sand, but, " when the storm blows, they are gone as quickly as the rest".

The one and only rule you need to follow,

"sell on rumour, buy on fact."

You follow that rule and it will save you a lot of money in the long run.

YOUNG_TRADER said:

Hi guys,

In response to what I now do differently,

I don't treat share (or even property) investment as a passive thing,

For example I have something like 4 broker acc's all under different company names, why you ask? Because I treat investing like a business, I have spreadsheets showing my current positions and update them at leaset every few days,

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On this topic, does anyone have any information about setting this kind of thing up. I would like to set up a trading business but have no idea how to go about it. I suppose its a thing you would need to speak to an accountant for.

the barry said:

The one and only rule you need to follow,

"sell on rumour, buy on fact."

You follow that rule and it will save you a lot of money in the long run.

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I always thought is was the opposite:

Buy on a rumour....sell on a fact.

I guess it only works when the rumour is a good one and turns out to be correct and is in the best interest of shareholders.

BSD said:

I disagree with a lot of the 'trading' techniques boosted and implemented on this site. When this market turns to bear phase - many will be better served 'trading' horse racing and football on betting exchanges.

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Remember BSD, bears and bulls make money; pigs don't goes the cliche.

There is one fundamantal difference between horse racing gambling and stock market gambling: the latter allows you to get some of your money back; though I don't condone the lazy plunger mentality that you may be referring to.

BSD

Alternatively, it has something to do with buying assets that have an actual value based on current and future cashflows.

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Value is a figment of the imagination until realised in hindsight.

Which has nothing to do with the potential for a bigger idiot coming along to buy the asset on a hype driven whim.

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Yes I agree in principle, but what about value at those prices the bigger idiots are buying at?

Sentiment is fleeting - value is real.

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Sentiment is real, but just like value, or one's perception of, is ever changing.

Uni books are out of date.

It's Snake Pliskin said:

BSD
Uni books are out of date.

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But knowledge lasts forever.

Kauri said:

My first trade as a scalper/daytrader

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Love your work K.
Never leave ASF, I do enjoy the feed

Thanks Bob.

Bobby said:

Love your work K.
Never leave ASF, I do enjoy the feed

Thanks Bob.

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Hope he did'nt miss this.

Your posts are entertaining ~ I applaud verbal swagger.


Have fun..

BSD said:

Dont worry too much about 'insignificance'

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Insignificance rules... and elephants can't dance

Bobby said:

verbal swagger.

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Hahaha! I like that... nice turn of phrase!

Well you need a little luck sometimes and it apparently smiled on me.

I was so bemused by how the big boys play the game ... a Million shares here... A Million there.. I felt puny and insignificant holding only 41k so I got out of GPN a few days ago.

That was my only open trade at the time.

Since I only consider buying on new or recent highs I guess Metastock explorations won't be finding any new candidates for a while.

So I'll just sit and learn for a few days/weeks.

I am guessing today will be an education for me.

Rob

To bad I don't subscribe to the TOP THEM UP WHILE FALLING mentality

I coukd have bought back in at 4.1c this morning.... quite a variation on my 5.8c exit a few days ago

Rob

Bobby said:

Hope he did'nt miss this.

Your posts are entertaining ~ I applaud verbal swagger.


Have fun..

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Bobby..
If verbal swagger is to your taste
Try the thread... Charting the Crash
But be sure to take your napkin with you ~ Trust you won't miss this
Enjoy