As retail investors we have absolute freedom to define who we are?
Why can't we invest for long term and do short term trading to get ourselves constantly expose to the market and learn and experience from the market.
Investment means looking for multi-baggers; otherwise, why invest?
Value Investing - It is about multi-baggers
When you invest and trade at the same time, you learn to live in harmony with the market.
When some of your trading stock price goes up, you take profits and retain cash and wait for opportunity to buy back. Some time you buy low and high but at time, you got to buy high and sell higher. That is how the market works. You got to be realistic, you can't always buy low and sell high.
Real examples:
Noble Trades
Olam Trades
When you are holding both investment and trading positions, you tend to be less emotionally affected by market movement.
When the market moves up; your investment position are getting richer, and you are also looking forward to take profits on your trading positions.
When the market moves down, you are looking at opportunities to add new trading positions.
The only time you are really sad is when you run out of money and the market keeps going down!
Lastly, stop kidding yourself and call your losing positions as long term investment. Long investment must be potential multi-baggers.
Friday, 15 January 2010
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