In a bear market, you can have buy 10/10 stocks also loser stock one.
Don't believe, try it yourself, or someone can share this experience.

Talk is easy, real trade and practically time, thing is always not happening as your script one.

Take for eg.
Sime.
in 3 trading day, plunged more than 10% already. How?

5-7% is very easy to achieve one, one may forever cut loss, cut loss, until cut everything.

Some may say, don't play in bear market.
But when you know it is a bull market time, often it is too late.

Every technical rebound can mean a baby bull trend is born.

No one know it is an uptrend or technical rebound, until it is too late.

For eg. recently,
DJ has a nice surge from below 11000, to 11500, it is a uptrend, or start of uptrend?
or it is a technical rebound, before dipping back or even lower?

You want to see you a stock price which is RM2.00, but you bought at RM0.80 or even lower, then it is only achievable when you bought the stock in a bear market.

How people can buy PBB at RM0.88?
How people can buy Genting during 2008 at RM3.xx or Rm4.xx?

All comes from a down trend market, bear market.

Bottom fishing only right, if you fish the right fish or right fish pond, aka your targeted stock is right (fundamental good, solid) in the first place.

Bottom fishing can lead one lose pant one, if you fish at rubbish pond.

In a stock market exchange, you can have 1000 stocks, but the right fish can mean just a couple of ten or hundred stocks only.

Greece default, never mind, bond holder lose out only.

Who are the bond holders?
Banks.
Banks losing big money, and affect its liquidity and credibility and confidence is the biggest nightmare of economy.
Economy cannot work without banks.

Now, you see why I said before, we are seeing the disadvantage of globalisation, everything become inter-related.
US banks can lend money to European banks. Money can be transferred from Euro to US and vice versa with a click of mouse.
Globalisation, means you die, I also suffer, everyone is inter-related.
Somebody did wrong thing, but you still need to bare the consequence, just the degree more and less.

See how US QE1+2 aftermath, Asian countries across generally are struggling to contain the inflation pressure?
Asian countries did nothing wrong, they are not venturing into RE bubble, they are not venturing into risky derivatives, exotic derivatives, they just work hard and save enough money for themselves. But we see foods price sky-rocketing, house price shoot to the moon, and many ordinary worker class are not able, even servicing a loan.

If not globalisation, it is your matter, the degree of affect is not as great now.

Don't get me wrong, I am not against globalisation, it has vast advantage, but it is not flawless.

There are plenty of cash sitting at sideline.

Just ask back yourself a quesiton.
When you know, market may turn ugly, may go down further due to potential defaulting happening, what will you do as fund managers?
1. Sell a portion and keep in cash.
2. Lock in profit (there are plenty of profit can be locked in for a lot of people).
3. Reduce exposure.

Do you know, money can evaporise when market goes down?
Trillions of money in paper suddenly disappear in the thin air.
Lot of money flock to treasuries, ain't we see 10 years plummeting to below 2%, from 3.x%?

If US and Euro economy turn ugly, Asia or Malaysia won't spare from it.
Just degree of effect is more and less.
See how GDP growth slowdown across Asia, when US and Europe start to register stalling growth figure.

Can, after share split 1:10....

I got a win-win solution.

Use 2k to buy Dell, good enough to use.

The rest 6k buying 6% dividend stocks.

Got laptop, Happy.
While everyday wake up time, you see Rm1 pop up in your eye. Happy.


This post has been edited by cherroy: Sep 20 2011, 04:05 PM

No Ipad, but range of LV bag, Coach...

There is high possibility, that US economy may repeat Japan footstep.

A lot of identical matter, QE, super low interest rate, stimulus, but with stalling economy.

The term "don't lose the capital" /= cut loss, nor imply must cut or not cut loss.

The term of "don't lose the capital" means that you must buy the stock that highly won't result you 'to lose capital'.

You misinterpret wrongly already.

You should be the person wait for the cooked frog and served to you.
Not the frog...

This post has been edited by cherroy: Sep 22 2011, 02:41 PM

The most important is your underlying stock quality and ability to pay you handsome dividend, which I like old man repeating this same advice.

Cart lock in locker room, only basket available.

When market down, all go down one, this is always the same and repeating.

I am a bit surprise Maybank is holding up so well.

Fed just announced operation twist last night, then market also "twist"...

But consumer stock highly can still pay you the dividend, and can come back when economy back to good time.
But others don't know stocks, don't know liao...
or even don't know go to where...

This post has been edited by cherroy: Sep 22 2011, 03:43 PM

Greece problem is easy to solve one.
1. Defaulted
2. Out of Euro, has own currency.
3. Own currency depreciate significantly, boost competitiveness and tourism exploding due to depreciated currency and cheap goods there, boost the rest sector, start climbing back up.

You will be the next billionaire if you know today is the lowest.

Previously, whenever the market is crying, there is sweet given.
Now said no sweet is given, even before market start to cry, so now crying....
As some even view, run out of sweet already, cry even more.

Addicted to sweet already.