Terjun Long kang wei.....better run as rasional novice rather get burn violating Warren Buffet basic rule no. 1 - never loss the capital...

Terjun Long kang wei.....better run as rasional novice rather get burn violating Warren Buffet basic rule no. 1 - never loss the capital...

True but Buffet is a value investor not a trader. Therefore he hardly losses his capital and can afford to say, never lose your capital.
But if you're buying counters like this, you're effectively a trader and therefore his rule no 1 doesn't apply all the time. As a trader, you must know when to cut loss. Otherwise it'll eat into your capital. For those who bought it in the 20-ies range then its better to cut loss now before it goes lower (to 18 sen?)...

i wonder why ur bought saag in the 1st place as ur already predit it will be down. 

dun be gambling attitude in stock market.  bursa is not a playground for the gambling dun play-play.

just sharing.
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http://beta.nanyang.com/Newscenter/article...40&sID=7&cID=10

i wonder why ur bought saag in the 1st place as ur already predit it will be down. 

dun be gambling attitude in stock market.  bursa is not a playground for the gambling dun play-play.

just sharing.
--
http://beta.nanyang.com/Newscenter/article...40&sID=7&cID=10

No one buys a stock expecting the price to go down unless you're shorting it and I didn't just buy the stock a few days ago, it was a few months back when it was way above 30 sens. On hindsight I shouldn't have bought it in the first place but seeing as I'm already stuck, I might as well be a long term investor in the company.

i wonder why ur bought saag in the 1st place as ur already predit it will be down. 

dun be gambling attitude in stock market.  bursa is not a playground for the gambling dun play-play.

just sharing.
--
http://beta.nanyang.com/Newscenter/article...40&sID=7&cID=10

Sorry again ...
I don't think averaging losses is a good strategy compared to taking the losses now and monitor the situation.
Only go in when the evaluation is already positive (more often than not you will never get to this positive situation).
Or forget this counter and go into a better one.

Gambling and Investing are two different issue, please put in your mind that people buy a counter, hope the price will appreciate, ok?


The difference between investing and gambling is the risk and return tradeoff.

In investing, the odds are generally in your favor, but that doesn’t mean you’re going to make money.

What is the difference between investing and speculating?
The main difference between speculating and investing is the amount of of risk undertaken in the trade. Typically, high-risk trades that are almost akin to gambling fall under the umbrella of speculation, whereas lower-risk investments based on fundamentals and analysis fall into the category of investing. Investors seek to generate a satisfactory return on their capital by taking on an average or below-average amount of risk. On the other hand, speculators are seeking to make abnormally high returns from bets that can go one way or the other. It should be noted that speculation is not exactly like gambling because speculators do try to make an educated decision on the direction of the trade, but the risk inherent in the trade tends to be significantly above average.

As an example of a speculative trade, consider a volatile junior gold mining company that has an equal chance over the near term of skyrocketing from a new gold mine discovery or going bankrupt. With no news from the company, investors would tend to shy away from such a risky trade, but some speculators may believe that the junior gold mining company is going to strike gold and may buy its stock on a hunch. This would be speculation.

As an example of investing, consider a large stable multinational company. The company may pay a consistent dividend that increases annually, and its business risk is low. An investor may choose to invest in this company over the long-term to make a satisfactory return on his or her capital while taking on relatively low risk. Additionally, the investor may add several similar companies across different industries to his or her portfolio to diversify and further lower their risk.

Haha, I'm not averaging down my losses in saag. No more capital to expend.
I'm taking this as a learning experience if nothing else comes out from this. 

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Added on October 25, 2009, 3:07 pm

I agree with zamans98. Btw, I got this off from investopedia

well, i am now doing foreign exchange which is at the top of your list.
the most important thing is to discipline yourself, and not to be greedy, take profit, even the profit margin is small, while you have the ability to do so.
same goes to stock investment, i think most ppl invest in saag should know this, after we bought this counter, the price would have been rises for half cent or to a few cents during the rally, but we are too greedy to hold them until.... the party is over..
i am on of these ppl, example is oilcorp which cause me loses around 16k, i had disposed all of those share, during the rally time, my paper profit is 3k+, but i am just too greedy, attempt to get more, and now this is the price.

so think clearly about strategy that is to be used on this counter.....
i had already declared my standing

tmw i will buy 100lot to averaging losses .
my neighbour tell me saag will rise up soon.

dun miss the boat

forget ask reason . but i trust she. bought knm 0.325 the lowest price also listen to her.

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Added on October 26, 2009, 2:12 am平 凡 人 致 富 的 方 法 只 有 三 种 ：
第 一 ， 生 对 胎 ， 出 生 在 有 钱 人 的 家 。
第 二 ， 找 对 人 ， 另 一 半 是 有 钱 人 。

如 果 你 出 生 平 凡 ， 而 又 结 过 婚 ， 那 么 你 只 剩 下 最 后 一 个 方 法 ， 那 就 是 ：

第 三 ， 努 力 储 蓄 ， 大 胆 投 资 (买股票）。

If making bcoz listen to her, but if lozz bcoz listen to her meh ?