Opportunity cost is so important meh?

now bull season coming?
The market has been on an incredible bull run for few years already.

And this is what's funny.

Everyone wants to rush in the market.
And if the market is like fighting a war....
consider the following...

Before we fight any war...
we prepare ourselves...
we train ourself to fight before we fight...
right?

But in the stock market, why do many just want to go straight in and fight the market?
How prepared are them to fight the many battles in the stock market war?
Fight while you learn?
Really?
Seriously?

i dont know how you guys view the 'price' opportunity cost. however i weight it quite heavily. life moves on everyday i agree, but to look back at our past and mistake for not doing anything is actually quite painful for me

doesn't you feel wasted when the bull come and you did nothing? and if you view opportunity cost is not important, may you share your thought over here?

because people are sold to the idea that you are stupid not to enter immediately while everyone is in it.
people are sold and enter not because they want to protect their money, instead they are afraid that they are not getting in and gaining in something so easy everyone can enter.
is simply the best skim cepat kaya in the world, it's legal, everyone is doing it, big fish got big money, and need no marketing at all, everyone knows it, so no middle man like MLM, everyone is their own boss. LOL

I am one that feels that it is more important to trade correctly or invest properly.
Getting this correct is more important.

If I am not ready to fight the market...
I am not ready.
It doesn't matter if bull or bear market.
I am NOT ready.

To fight the market, just because it is bull market (unprepared), it just means I don't understand RISK.
When I don't understand risk, how can I justify myself to play the market?

Yes, peer pressure.

They see everyone winning....
so they decided to 'try luck'............

Little do they realize the market is a monster.
The market is cruel and unforgiving,

yup, market is just market, it does not care.

This post has been edited by wanttobuylaptop: Apr 4 2014, 09:59 PM

wasted is the word. this is exactly the emotion/feeling people get and next you know, they go in.

so its more about risk management and market outlook with fundamentals with the targeted shares

yep. right now my wealth portfolio is like shares 60:40 cash in banks. no commitment except for daily needs. don't know whether i should pour more into stocks or not

just think to fight and win in the stock market as fighting a war.
How are you going to win the war?
you need to be prepared...
so many things...
You need to understand the risk in fighting the war in the first place...
then you need to understand the risk in each battles.....
And before you fight any battle...
you need to plan...
you need to train....
you need to learn how to fight...
you need to study the conditions of each battle....
you need to manage your army...
you need to manage your inventory...
you need to understand who you fighting, where you fighting....

(can you relate most of the above to stock trading or investing or speculation? )

so many things required.

tell me how is it logical for one, just to jump in the market without any preparations?

I support these statements.

How to make sure that we are indeed fully ready to fight and win in the stock market? You said that you've had done paper trading for 5 years and how could you be sure that you're indeed good enough to trade/invest?

Since I've been exposed to market, I find books and keep reading and reading and in the mean time, I do paper trading and keep following the companies from their sites, news. I took their annual reports and read and tried to make sense of it. Now, start to put a little money in it. Yet, I don't feel that confident which might be the sign of me being not well prepared.

And yes, protecting money at first is very very very very important for me. Losing money is no good.

hmm i think you mention before this either yesterday or other day... haha so kind share again

its logical if someone with strong army is fighting against something weaker, and you know if you could join force with the stronger team to defeat the weaker ones to gain some reward. but as you mention, you never know what's going next. the weaker team maybe ask support from a much much stronger team or the stronger team could just eat you up int he process. in the end, is really asking for trouble yo

and many kind ppl here like you are like giving the knowledge on the opponent weakness and strong point. that is a plus factor too, but then we really don't know what is happening next

u remind me Sun Tzu art of war...

IMHO, I do think that chances will be there as long as the market is there, but market is a scary place, so rather than missing profit, I would rather protect my money first even if I'm only a teeny tiny small fish.

Very much alike with coldeye's ways.

i also almost cut this during the first mention on Russia possible war but decided to wait to see is it just a panic sell, hence that's why i mentioned 'Run quickly or not at all'

Don't rotan me ya, hoho

When I was doing my fake trading, I was spending close to at least a minimum of 8 hours a day, just learning.
I examined trading theories...
I tested the theories...
sometimes a theory took me several months....
I examined why the theory worked and why it won't....
I was serious about it.

For example, on V3, I talked about TRC.
Now the speculation theory is simple.
Now MRT 2 is an interesting topic.
Project winners will get millions and millions of contract.
As a punter/speculator what do you want to do about it?
You obviously want to check out if such a punt is worthwhile, correct?

How are you going to go about it?
Rely on tips meh?
Rely on inside info meh?

A little research or back testing on the subject wouldn't kill right?
Comeon... don't be lazy.
Do the damn homework... hehe... ('xcuse the lingo)

So to test the idea out (like how I test theories/strategies)
I check the past....
The best reference would be the winners of MRT 1.
Check Uncle for past news....
what do you get? (refer v3 postings)

We found out when we put dates on the chart and all the announcements...
TRC did not come out as a good bet.
And further study would show that despite TRC winning millions of contract from MRT and also LRT...
it recently announced losses.
Reason: costs overrun.

And when we look at the 2 chart, we can clearly understand why TRC so lousy.
It can win the projects but it cannot make profits.

Once we make such homework, we can fairly gauge if the 'bet' on TRC is a good bet or lousy bet.

Same with trading theories.
The process is the same.
I ran tests.
I learn to gauge my theories.

I studied my test results.
I studied my failures.
I studied my wins.

I did a lot of work.

There's no short cut to success.

Which is why if you know what I had done, you would understand why I cannot understand players who just jumps straight into the market.

Maybe they pandai-er than me.

Is share market the only case where people can jump straight in and make money without any prior training?
Study and learn the market while they play?
I cannot comprehend that cos it's way too risky.
Yeah, when they lose, it's called tuition fees?
However, why be so silly to pay such money?
.... and if one is not careful, the tuition fees could easily overrun and could even put one of the game permanently.

Shit.... long reply.....

.......

Sun Tzu is one great sifu....

AhBoon so early geh? Today no market wor... do homework again aaa?

Zhuge Liang is better... endure endure...

Not yet......


here's a good exercise. (please take it purely as an exercise and do NOT put any money in it... )

Dsonic.

Look at it....
study it.....

1. If you were a wanna be buyer....
2. If you were a HOLDER .....

1 is obvious. Stock is falling, would you buy?
If you want to buy, what price would you buy?

For 2, if you own the stock, what now?
Hold? Buy more? Where would you get up and say, you have enough and cut pisang?