Wednesday, June 29, 2016
Stages of preparations
There are THREE stages of preparation that is needed ...
1. Before crash
2. During crash
3. After crash
We are at STAGE #1 ... the preparation before the crash. Before crash, we will see many rushing to list their companies ... so we shall see more 'small' companies listed. Also, we shall see more right-issues too ...
Preparation for stage #1 is very difficult ... but I think stage #2 will be much more difficult. But ... let me focus in stage #1 first. We shall discuss more of stage #2 and stage #3 ... when time comes.
Many retailers are FAILING stage #1 ... in my own trading group, I could see many stating they QUIT KLSE for the time being and will be back to buy during crash. As I have mentioned early, it is near impossible for those retailers to buy during crash ---- without stage #1 preparations.
I will have less than 2 years to prepare ... and if the crash is really 1H2017, I m certainly NOT prepared. Just like marriages, we could never be so-called well-prepared. But ... at least we know the date we are getting married, right?
The UNCERTAINTIES ... the patience to wait ... the strong MENTAL individuals ... to withstand the current pressure of uncertainties.
While all of us knew that we need to prepare BULLETS (funds) ... many may not experience CRASH before ... we might not see 1998 severe crash ... but if KLCI to retrace to 1000 level, that is great correction to me.
Whatever level that could be is not for us to predict. I do not believe in predictions ... I will prefer to know what I should be doing.
At current moment ... the market is fragile. Today KLCI up up ... DOW recovering well too ...
Barrick Gold : Listen to the youtube clip above. Soros bought this one.
Whether is another half year ... or one year ... or even two years before we see crash, we have to prepare STAGE #1. I have written many posts on CUTLOSS ... this is most painful and difficult decision all have to make ... as market NOT crashing YET.
And retailers still talking about KNM ... or goring HiapTek. Short-term thrill will put us in long term pain.
I will rather watch the game now ... while take cautious short trades on blue-chips.
Read the first tips I have give all ... CUT-LOSS is the most important preparation for stage #1.
Coffee-talk : Going to meet a property investor ... and a friend later. I wanted to know more about the situation in properties now. Yes, I will meet bankers too.