Think of the simplest reasons.

When you buy a stock and the stock price goes down, what essentially has happened?

Answer: You either buy the wrong stock or you buy at the wrong price.
Either answer, your buying action was wrong and this is why the stock price moved down.

Of course, one will say, I bought the correct stock.
That stock is fundamentally strong.
It fell cos..... err .... no luck.

Maybe.

But no matter what, you were wrong.
Averaging down means you are buying more of your original mistake.
Would you agree?

Averaging up.
You buy the stock, it goes up.
Why?
Right stock or the stock was bought at the right price.

Or just plain lucky?  

But no matter what, you did something right.
Averaging up means you are buying more of your original correct decision.

But MANY would argue that they tend to lose money when they average up.
Why?
How come doing more (buying more) of a correct decision end up failing?
Is this tactic wrong?

How about asking if one was averaging up correctly?
Simply adding up to a winning position and simply adding at any price is reckless and usually would fail.

Me?
I am a fan of averaging up.

Another shocking news in the pipeline :_

Ku Li eyes PM post, meeting more MPs, say sources

http://www.themalaysianinsider.com/malaysi...ps-say-sources/

then next time i dun want give buy call liao

Today blame game start and you want me to give you tipsy?

Sorry yah.. for the insider news call... i will never give insider call again... 

Maybe you are with good intention to share, which I believe so, but, by making the insider news here is making it public.
Those who don't really knows you that follow your buy call and buy, if the market U-turn like these few days, whatever shares also will dropped. And, if they makes a lost, they will blame you.

Best is like me, only share with those that knows you well but not all.
But still, for my case, a rich uncle (my supplier) that follow my "insider news" bought 2 counters. One of the counter did actually shoot up when the news came out, but he didn't profit taking. End up, he make loses and keep on average down, and now he got trap inside with few hundred thousands. Although it is not my false, and the insider news is 100% happened like I was the one who wrote the script, but seeing him paper lose today by following my buy call, I feel sorry for him even he never blame me. He knows for sure that I am not a conman. The other counter, I am still suffering more than he is as of today.

That's why nowadays, I don't share with people insider news.

If I choose to buy shares from the insider news here, if I lost, I've only got myself to blame. Treat it as a lesson loh.
As for Redtone, I believe it will comes one. Now is just minor correction. I've heard enough about Redtone since 3 years ago. VT is behind mah.

Hope I've make my point of view clear.

Indonesia central bank increases interest rate by 25 basis point , bad Omen .

JAKARTA (June 13): Indonesia's central bank surprised the market for a second time this week by raising its benchmark interest rate, which had been unchanged for 15 months, by 25 basis points to 6.0 percent on Thursday.

OT  : U guyz heard of the Heong Leong Savings where first year u pay 6k for 6 years only where they pay u 1.2k yearly? any good in there,

Today dead kucing bounce...

2 strategy..

1. Sell into strenght
2. Buy into rally
3. Do nothing...

which one you all choose.. i choose do nothing... 

At coffee shops, older drinkers esp uncles prefer GAB products (Guinness, Tiger).

But younger drinkers and pubs tend to favour Carlsberg.

But seriously, Tiger taste better than Carlsberg

Especially cylinical stock like steel company. We should buy when PE is high and sell When PE is low. Because market may perceive some bad times ahead thats why PE drop until so low

If I am not wrong here... 

Cyclical stock like steel, they have very short profitability one.
So the best time to buy, you buy when they are losing money, or have hardly any earnings.
When there is hardly any earnings, the PE will be high.

When the earnings turn around, the earnings for steel stocks comes in big lump sump.
So the PE will suddenly turn from high PE to low PE.
Anc because the good times for steel stocks tends to be short lived, you then should probably sell when the PE is low.

You probably can use CSCSteel as a reference.

Because PE is based on historical figures. Shares investment is looking at prospect. Assume financial community are rational, they have taken account of the future prospect of the industry. Thats mean the prospect will not as robust as currently is. Political factor such as dumping, rising standard of steel import quality, economic risk (forex fluctuation)  and embargo will affect the robustness of steel industry. There maybe decline in performance in the future where climb up the PE or have no PE (company making losses) at all.

Cyclinical stocks are not easy to predict. It is only suitable for investor who is in the industry n know the market well. Learn from peter lynch.

When i buy foods industry, i know people will eat no matter what the economuc conditions. But we cany do this on cyclinical stock. Thats why cyclinical stock is not a sound long term investment

oldtown, astro, aeon, walmart, coke are some of the long term investment i am looking at. They all have wide economic moat can defense against competition and market. I will buy them when their price reached my intrinsic value. Think of 100 years, they will still survivr

One new one  coming out 50 channels for rm 30.

BTW Maxis is up for sales, next could be Astro.....

Most small cap bosses are approached by sharks, or they linked themselves to sharks .

Like a private equity type

U think all also got mutual agreement one mer? Not all will have mutual agreement one la.
Some are very indirect one..

Wanna give example..

Ah.. Tan Sri ah.. Come let's play golf tomorrow from 9 to 11am.. We can have a good chat..

So you got 2 hours window liau lo.. Hahaha

http://thestar.com.my/news/story.asp?file=...6924&sec=nation

so interested to know how our deputy finance minister gonna reduce the prices of houses
pop the bubble ka?

Tony zai busy with listing of new IPO

He has Airasia, Tune Insurance (Feb 2013), Air Asia X (July 2013), now they are aiming to list Tune Hotel by 2015. Waw.

Tambun piah tomorrow AGM

Waiting for 3.3c dividend to be approve

Agree.
Even my sister who prefer comfort, she always choose MAS. She doesn't mind pay extra for comfort.