In property market in Singapore, the govt have just announce another rule to cool the market down. It happen when property price are reasonable and people start to buy them, as people start to buy, more people will follow. Those who want a place to stay are afraid that they might not have a home and those who want to invest are afraid of not able to buy the property low enough to sell it at a higher price. So the cycle goes on and on. People are chasing for higher price, buying and buying.
The stock market is also the same. People chase price and the price of the market get higher and higher. which mean to say people are buying high and selling higher and some people are buying higher higher price and try to sell at higher higher higher price. When this happen, it often lead to a bad ending. It not about buy low sell high. But is buy high and trying to sell higher. Is investing a game of luck???If so, would it be better to buy 4D bcos the winning payout is many times higher than the amount you bet???
To invest is to put your money at calculated risk with the potential to earn profit. The word is calculated risk. Have you wonder why you buy this stock?Have you wonder is the price that you are buying a good and reasonable price? Have you wonder what the big boys are doing?etc
Even for these questions you ask yourself, there are alot of why in these why questions. Until you answer them, you are not taking calculated risk. Please do not take my broker, my friend, my relative, my whoever say is good and worst the newspaper or TV say can buy as an answer. Do not blame other people for your loses, bcos is your responsibility to know what your money is doing. Even if you make money out of an investment, you need to know why. If you do not know why mean you are just lucky. Luck will run out.
I have seen many people losing money in the market.They have initial plan to buy and sell in the next couple of months but bcos they dint analysis well enough, the couple of months drag to a year and slowly they decide to keep it for long. Then they invest another sum of money in the market with the same thinking.Unfortunately, the stock dint perform and it turn out to be a long long term investment.So please for your benefit, have calculated risk and do not be lazy, control your emotion.If the money is stuck in that stock you not only lost the money that are stuck but you lost the opportunity cost to make more money or for other purposes.
I am a short term trader and do not like to hold long term position unless on mutual funds. So when reading my blog, do consider the fact that my style and way of investing may differ from you as a person.Nevertheless, you can use this blog as a reference.I have been trading for 5 years and have seen more sad people that lost money than happy people whom win money. Trading is not for everyone but investing is. However invest with calculated risk.
