Wednesday, December 17, 2014

Defying LOGIC

Morning ... it is 4.15 am now. I am at Kota Kinabalu at the moment. Excited.

KLCI gapped down for TWO consecutive days. Crude oil price below USD60 now ... while Russia making drastic calls. Currency war? Ruble dived ... MYR down too. Oil-dependent countries are having the pinch. Read about Venezuela too ... and the stories on 1MDB continue ...
What should we do in stock-market? Staying sideline is an option. A good one, indeed.
What about those bought at high of PDZ at 30cents, DNex at 40cents, Sumatec at 50cents, KNM at 60cents, THHeavy at 70cents, Alam at 80cents, IfcaMsc at 90cents, Mitra at RM1, TAS at RM1.10, Armada at RM1.50 ... Boilermac at RM1.70 ... and so on?
If there is no cut-loss level placed BEFORE we took the trade, the losses could be ... huge now. Many are tumbling done ... and we are wondering why?
First simple question : Why are we buying those stocks at THAT level(whatever level we have bought into)?
If there is not valid reason, we are actually just ignorant ... and took a bet(gamble) and lost. That is the whole thing about RISK ... and why I have been so active having e-meetings with my group for past 3-4 months ... telling them the importance of viewing about RISK ... before we could even think of profits.
If I ask the question : "Do you know that 80% of retailers losing money" in May-Aug period of time, many newbies who just came into stock-market ... who boosting their huge profits in punting into PDZ(now IFCA is a must to buy ... to boast) ... and laughing their way to banks ... who even take a heed of the word RISK.
But ... it is easier to send a message about RISK today. Yes, today is the day I m out here again... talking about RISK again(like everyone don't know about it ... hmm ... knowing is one thing, doing is another ... ok?)
To send the message, and to help many newbies to understand that losing money(lots of it) ... to ask them to LEARN first .. is VERY VERY difficult if market is bullish and anything we buy into also giving us profit ... we will tend to FORGET that trading is risky. GREED in play ... and forums becoming noisy ... remisiers/dealers happily recommending stocks to buy/sell ... to earn commissions from their clients trade. In daily basis ... we will be bombarded with e-mail, sms, watsapp and media ... telling us to trade. Heck ... so many sifu-guru came out during early of this year ...
Did you notice that software salesmen were out there with NEW trading software, while more promoters telling you that we should take advantage of their powerful software(programmed trading signals ... blah-blah) ... ? That could also use as a sign or indicator that market is BULLISH and many newbies drove into the KLSE-hole. Welcome to Bursa ... with our newly improved software, we could detect XYZ and profiting from market is as easy ... and now, everyone can trade?
I do also observe those trading-groups ... mushrooming during beginning of the year. Same old tactics ... same targets. Yes, they are targeting greedy retailers ... some earn commissions for things they are doing!! Remember, anything TOO good is not true ... as if they are THAT good, they will be using it themselves. Perhaps, banks might BUY their systems for millions? Perhaps ... banks would have employed them, with fat wages?
LOGIC ... is something not there for most of us in market. It is the most difficult to stay focus ... and use our common sense. Since when we are LOGICAL when we first fall in love with the most charming guy/lady? Think you could control your emotion ... the first time you kissed? What if you have few relationships ... experienced few break-ups ... and cried over it? Do you think you could think straight and LOGIC when you are in love? Or could you just put your sadness aside the next day you broke-up with your gf/bf?
LOGIC ... means putting our emotion aside. That is difficult. Otherwise, how do we explain people part huge money(hard earned) for a scam? Or believing into what a sales-promoter sweet talk us to buy their products? Only for today ... we are giving you 40% discount? Or ... hmm ... today is your lucky day, sir ... you are picked to join our sure-win contest ... all you need is to buy our XYZ product, for a fraction? See ... they will give you a SMILE.
Everyone will learn their LESSONS ... some who too egoistic will not be in markets for long. Mr Market is too huge for us. We could only learn from mistakes ... learn to control our behaviours, having correct mindset and positive attitudes ... if we are to survive in trading markets. No one could help ourselves if we DEFY the logic ...
If we cant even drive a car yet, no driving license ... will you be doing 150km/hour in a kampong-road?
Do think of LOGIC I m trying to drive ... to the whole trading public out there(if u are still losing money and insist to be still in market).
It is almost 5am now ... I will want to do my 5am ritual.
Going to Mt Kinabalu park today.
Have a nice trading day ... anyway.
Note : This is my post #2999

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