Friday, March 02, 2018
e-meeting : SELLDOWN
Question : How do we protect ourselves from the selldown?
It is a very valid and good question ... where I asked myself many of times.
Because lack of FA knowledge, I would not be able to dissect the biz in so-called 'right' analysis ... and over the years, I started to learn that markets DO NOT work on FUNDAMENTAL analysis , which many promoting ... or being brain-washed. Well ... if you are newbie, you might be still believing in those FA ratios : PER, NTA, PB, ROE, DY etc etc.
Those ratios are good to know ... to tell us what TO AVOID.
Example : We do not buy in losing money companies.
Even if we know the companies are LOSING MONEY ... many STILL believing that it will turn around. Let me share with all what I learnt from many 'experienced' investors ... most companies could NOT recover. Don't hope ... they might change their names, but the core is still the same : bad management and bad biz.
Sumatec : popular enough? It shot up recently and someone wants to buy at 11cents. You may want to tell them about Sumatec a trap ... but , they are newbies or gamblers ... you cant talk to them about logic. They will show you the MEDIA , the good news written about Sumatec ...found some oil at "Kyrgyzstan" ... so, I will keep my breathe to myself. I argued with someone when he was promoting Sumatec back at 40cents plus level.
The more I know about operators, market movements ... media and such, the more reasons for me to keep my silence. The newbies will never able to grasp ... they don't know what they are playing with.
So ... make it a simple discipline : NO BUYING INTO SPECULATIVE COUNTERS.
HWGB : Reminded me of my argue with a person (SP : cohort-1) some 6yrs plus ago ... it was at 40cents level and I asked him to CHANGE HIS MINDSET and do not use charts to buy HWGB. He got upset that I tried to 'help' him ... I was sincere and seeing that uncle came to me to learn trading, I thought I could 'save' him.
Nope!! Today ... I do not even conduct trading workshop (only 1-2 times per year, under request from members) as I have 'given up' that you cant teach majority retailers. They will get caught UP THERE and stuck.
Market works on cycle ... up-down ... some being pumped to be dumped. Some very violent in short term ... some drifting lower ... and create pain in many holding to those stocks.
Take a look at new low Sapnrg or Karex.
Sapnrg : Well ... broken support and going to NEW low. This was index-linked ... when SapuraCrest and Kenchana merged into SKPetrol. But ... Kenchana left, TDM's son ... and now Sapura Energy (re-named) have to struggle ... without investors interested with her.
Karex : hit new low at 87 today ... no one using condom anymore due to Gov requesting us all to have more babies? haha ... nope, Gov needs more supporters ... to support them. Not you or me who got brain la.
It is endless list of many STUCK UP THERE. Are you one of them?
So ... how do we avoid the SELLDOWN?
Will like to discuss about that tonight.
SELLDOWN : Are you stuck?
Fri, Mar 2, 2018 10:15 PM - 11:30 PM +08
Please join my meeting from your computer, tablet or smartphone.