It has been exactly 24 months since I start trading. Like the majority of rookies, I did so short term investments and inherited some losses. Fortunately, none of them destroyed my cost savings, and I learned something from every single reduction. 3.4 after accounting for splits) for leading me to value trading. On this bull market, many of my friends who traded blindly made a lot more money than I did. Plenty of investors in InvestingNote has also shown me crazy single-year returns (40%-60%). While I really do envy their fortune, I will stubbornly stick to my guns as a value investor since it is in my own character to be one.
I don’t mind standing alone in a corner and generally avoid crowds. I know some “value investors” who have lost their way because they are only in the game for the money (in short, they may be just simple greedy). It is pretty easy to steal ideas from eminent blogs or forums and earn a decent return.
For me, stock picking can be an intellectual exercise. I am only interested in cheap stocks and shares. Financial experts quipped that if a mall runs a major discount, products get sweep from the shelves. But they lament that the crowd does not act throughout a stock market modification similarly. I am going to play devil’s advocate; companies are a complete lot more complex to inspect than apples.
Most of my companies are genuinely in a few kind of trouble. My job as a stock picker is to invest in companies that are cheap and can change things around. When will that happen? Well, it isn’t my job and am I capable of such a feat neither. The marketplace has been kind if you ask me going back fourteen days extremely.
The ultimate test for just about any energetic (or enterprising, a term coined by Benjamin Graham) trader is whether she/he is better than the market in the long run. “Value traders are more like farmers. They flower seeds and wait for the vegetation to grow. If the corn is just a little late in starting because of cold weather, they don’t rip up the fields and flower something else. Most of the right time, my stocks are sleeping or falling.
= $ =p>Good news does immediately. Wee Hur, a company which i purchased about 140 days ago, barely moved. I want to conclude this post by summarizing my investment strategy. My profile is largely varied into cheap and safe businesses with little to no personal debt, and are run by management which are shareholder friendly.
I speak to a lot of individuals about investing. Many of them are afraid to get. I don’t think they understand their fears, but the longer they talk the more I recognize the fears that are not apparent to them. This week I had fashioned a few of those conversations. One was from an existing subscriber and one was from a potential subscriber that has called me on several occasions. At the end of every of the calls from the subscriber he informs me that he understands the need for my service , which he is heading to subscribe.
But, he does never. The other conversation has been a current subscriber who didn’t get in the marketplace even though he knows that the RIX has been on Buy Signals for almost all of the time since the March 9 lows. What are the normal threads in these discussions? Well the same ideas apply to most investors who can’t draw the cause on up tendencies and down styles.
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Another fear happens when the trend of the marketplace begins down. Many traders want to keep their recent earnings. They are sure that the marketplaces will get back to their recent highs so they stay too long because they are convinced that “if I sell now the market will turn around and return back up”. So they stay and stay until their losses get so big that they make the decision to trip it out. In bear markets, fortunes are lost looking forward to the market to go back up. Another fear occurs when the marketplace continues up.
Those who did not get in are frightened to enter because they are sure that if they enter, the marketplace will convert and they will lose cash down. So they await a pullback, that might not come. If the best pullback will come, these same people can be afraid again and can not get in even though they are given a second chance.