227. Shares Investment - Are you ready? To get in or out?
Share markets worldwide is bullish. I called this as a super cycle.
I. Why share investment is dangerous at any given times?
My answer is Greed, Ignorance and Fear.
A word of caution, someone says share investing is like gambling. Investing or gambling, it is a thin fine line. Gambling means addiction, investment means enjoyment.
If we invest shares is based on investment mode, then there is no danger of bankruptcy threat.
All financial indicators have limitations, they can be easily manipulated by political or market manipulators and they served certain groups of vested groups in the market, ie politicians, financial analysts, rating agencies and even company directors. So be very careful when making investment decision especially buy orders.
In my observation when execute normal buy orders there are 99% losers, 1% winner remains as winners.
II. Invest or not to invest?
Here I highlight three key points.
1) What to consider in investment, for example shares investment?
My answer is knowledge in fundamental, technical, market sentiment and mind strength in that order.
2) Who is actually making money in investment?
My answer is Messrs ABC
A : Analaysts, B : Brokers & Brokering Companies, C: Consultants
Messrs ABC, although they are professionals in their own right. Listen to them means surrender our destiny to them. Don't follow them blindly in general.
There are two more important factors about investment in shares: knowing ourselves have become top priority before we know the market forces next.
Therefore the only person to trust is own self.
III. What to do next?
Rule One: it is better make $1 rather than lose $10, Prevent making a loss in investment is the priority in trading. If bad entry, cut loss within 2% if necessary
Rule Two: Reduce over exposure to market risk as to prevent unnecessary loss. Say invest 15% of your total assets in shares market.
Rule Three: Stop trading if can't control our mind and body. To control our mind , first we need to build up our body pyhsical strengths.
Rule Four: Follow Warren Buffett ways of investment strategy if we are rich. Learn three techniques from him.
Rule Five: Have a winner mindset: No Greed, No Fear, No Ignorance. Find your own ways of investing. Win the market in certain ways.
Buy orders would determine to what extent we lose money, sell orders would determines how much we could make. - Simon Kong
I. Why share investment is dangerous at any given times?
My answer is Greed, Ignorance and Fear.
A word of caution, someone says share investing is like gambling. Investing or gambling, it is a thin fine line. Gambling means addiction, investment means enjoyment.
If we invest shares is based on investment mode, then there is no danger of bankruptcy threat.
All financial indicators have limitations, they can be easily manipulated by political or market manipulators and they served certain groups of vested groups in the market, ie politicians, financial analysts, rating agencies and even company directors. So be very careful when making investment decision especially buy orders.
In my observation when execute normal buy orders there are 99% losers, 1% winner remains as winners.
II. Invest or not to invest?
Here I highlight three key points.
1) What to consider in investment, for example shares investment?
My answer is knowledge in fundamental, technical, market sentiment and mind strength in that order.
2) Who is actually making money in investment?
My answer is Messrs ABC
A : Analaysts, B : Brokers & Brokering Companies, C: Consultants
Messrs ABC, although they are professionals in their own right. Listen to them means surrender our destiny to them. Don't follow them blindly in general.
There are two more important factors about investment in shares: knowing ourselves have become top priority before we know the market forces next.
Therefore the only person to trust is own self.
III. What to do next?
Rule One: it is better make $1 rather than lose $10, Prevent making a loss in investment is the priority in trading. If bad entry, cut loss within 2% if necessary
Rule Two: Reduce over exposure to market risk as to prevent unnecessary loss. Say invest 15% of your total assets in shares market.
Rule Three: Stop trading if can't control our mind and body. To control our mind , first we need to build up our body pyhsical strengths.
Rule Four: Follow Warren Buffett ways of investment strategy if we are rich. Learn three techniques from him.
Rule Five: Have a winner mindset: No Greed, No Fear, No Ignorance. Find your own ways of investing. Win the market in certain ways.
Buy orders would determine to what extent we lose money, sell orders would determines how much we could make. - Simon Kong
