Monday, April 23, 2018
Be patient to ...wait
Morning ... should I say, noon.
KLCI minus 7points ...nothing much tho I have few queues to buy.
example : HengYuan, Ekovest, Masteel ...
Eforce : some people like her ... don't know why. Anyway, today ... try to buy at support RM1. get it? We do not chase when it is up ... we sell at RM1.20 resistance, patiently wait for it to retrace back to support ...
It is not easy to 'DO NOTHING' but I m fully in cash ... doing nothing ahead of GE14. Ini kali lah ... or lain kali je ...
whatever we like for whatever reason(s), we can wait ... being PATIENT is important in investing or trading.
While waiting ... we read. We plan ... and prepare.
There are many quotes about being PATIENCE ... and it is very hard to stay 'being patient'.
DCA : This morning I was giving my trading-group a simple lesson on dollar-cost averaging , which is widely used in Unit-Trust funds or those 'no-brainer' way of investing(into good stocks). I used MALAKOF as an example
Malakof : Assuming we bought end-dec at 98cents (RM10k) and end-mac at 89cents (another RM10k) .... we would have average of about 93cents. We do not care about the price .. we will continue to buy RM10k for every 3 months. Next buy would be end-June ...another RM10k at WHATEVER price ... that is averaging it (up or down).
If the price is lower, we could accumulate larger units ... and pull-down our average price. Intention is to HOLD ... and sell only when it is 'over-priced'.
Even when we started to buy Malakof at RM1.50 ... we are not supposed to be worry ... as we are investing regularly. Markets will swing up-down .... as investors, we stay invested.
Note : I m just giving a simple illustration on DCA ... which personally, I disagreed. And Malakof is just an example ... not to say I like her.
So ... even if we are doing DCA, we have to be PATIENT.
I do not have e-meeting for past 1-2 weeks as I m stay aside, nothing to buy stance. Will like to share DCA method ... one day.
Have a good week ahead.