Monday, March 21, 2016

TIPS # 2 : Prepare bullets


http://cpteh.blogspot.my/2016/03/cohort-19-trading-workshop-next-sunday.html

Morning ... Monday's blue as the reds lost last night. Sigh ... their defence really questionable.

In trading, we do need defence-system to work ... cut-loss to manage our losses, for example. We win trades ... but if we are to lose hugely, we will be wiped off too.

Ok ... I have done my promotion of my coming-workshop. And as this week I m kinda free from many tuition classes, I will slowly write about my coffee-dinner dates, which still round in the questions on HOW we could prepare for coming market-crash?

TIP #2 : Prepare bullets



When I asked casually to all my 'dates' on what we should do ... to prepare for crash ... so far ALL of them answer : PREPARE more BULLETS (funds/money).

Ok ... they got is partially right. We all needs fund to BUY hugely during crash. That is understandable about easier said than done leh!!

Before we go into other TIPS ... lets focus in this second TIPS : Where to get money(legally la) and more funds?

Going back to TIPS #1, cut-loss. Yes ... that is ONE of the way to get back our capital.

http://cpteh.blogspot.my/2016/03/tips-1-cut-loss.html

In case you missed my first very important TIPS ... read the cut-loss tips first. Otherwise, we will be STUCK inside XOX, Sumatec, Hibicus ... hmm ... THHeavy and many more. How to find fresh funds when we are all over the places, punting here and there ... and followed many so-called sifu/remisiers/broker reports/forums/blogs .... except our own decision??


THHeavy ... trading at 14cents. LOADS of money stuck inside there, expecting it to recover to sell? Ok ....


UMWOG .... if we have it at IPO value(was it RM2.80?), at 90cents we could not do anything much ... once 90cents support broken, we shall see more downside .... and more funds STUCK inside.

So ... hoe to prepare bullets when MANY retailers stuck inside here and there?

The tips #1 was ... clear ALL losing counters which you blindly bought into them and LEARN the bitter lessons!! Remember, market is ALWAYS there ... but will you be there, prepared?


TIPS # 2 ... to get more bullets, refer to TIPS #1 first.

Then ... think of how to take LOANS. Yes ... personal loans, credit-card loans ... hmm ... overdraft, gadai house ...

I went to Melaka last Friday, a day trip to meet two of my e-tratles(first batch of my e-learning ... some 3-4 yrs ago!!) and to discuss with them about their preparations on market-crash.

Interesting enough ... one of them(my senior) said ... take loans via credit-card. It is only about 5% (mine is 7%). Yes, that is one way .... say we have credit-limit of RM15k, have good track records of clearing the balances ... we stand a good chance to get loans from them!! I don't know what they called .... but I have taken before the personal-loan.

When time comes (by end of this year) I shall max the credit-card loans ... and paying 5-7% interests(p.a) ... and use the money(BE DISCIPLINE) to buy stocks during market crash!!

Sound easy? NOT at all ... as most of people have credit-card balances. Some will just pay the minimum(I was one of them some 6 yrs ago, I should know) as they are squeeze of cash(yet keep buying more items).

Then ... once u have cash in hands, DO NOT USE or trade. Sound easy again? Not at all.

Most will spend the money ... or jari-gatal syndrome to punt ... and lose the money!! Serious issue of planning and discipline!!

One of my date (#5) told me ... an uncle sold his house to have funds to buy into market crash in 2008, but was LURED by friends into some MLM ... some scams, I guess ... and lost his huge some of capitals!! At the end, he missed the WHOLE 2008 market crash!!

Can you imagine how difficult it is to be DISCIPLINE when it comes to money? Will you drive a kap-cai or cheap Proton ... so that you could SAVE as much BULLETS as possible, awaiting for market crash?

It is THAT difficult as most of us following the crowds!! It is called HERD-mentality. No cut-loss ... no discipline ... jari-gatal ... etc etc.

NOISES in market too tempting to ignore. That explains WHY 80% of them will get stuck inside stocks when markets crash ... and 80% will not be prepared enough bullets to BUY. Serious?? You really THINK (needs brain again... that is something most do not use in trading) they will buy during crash? Hmm .... that will be next coming TIPS.

For a time being ... we could open a margin account, get personal loans ... withdraw our EPF (to trade) ... borrow from relatives/friends (give them 8% return la), get over-draft ....and save as much as CASH .... in preparation of BULLETS for the crash!

Are you are most are ready? They are still at TIPS#1 ... wondering what to do with their Sumatec, Iris, Wintoni and such, ok?

Get real. Be prepared. Treat me coffee ... and I shall interview you, getting more tips on how others preparing for market-crash(MOST of them do not).

TEH

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