Investing vs Trading (3) - Here the Hard Truth from me!
Two great attributes of long-term investor
What are they?
Super in FA? super in both FA and TA?
One grand Master Guru in the investment world has been holding some stocks for more than 20 years and collecting stock dividends from them. During the past and current market bears, he can still sleep well at nights. Why?
He uses simple strategy for buying, holding and selling for his favourite stocks (Createwealth8888: probably blue chips)
During market crisis, he would buy enough of his favourite stocks and stop buying more when he has enough of them and then wait for the bull market to come and sell enough of them to recover his capital. In this way, he keeps his "FREE" stocks in the market to receive stock dividends.
Grand Master Guru called them "FREE" stocks and Createwealth8888 called them "Pillow Stocks".
What did Grand Master Guru tell us?
Patience and Gut
The two great attributes of long-term investors for cash flow.
Patience to wait for big bears to come and GUT to put in enough capital to buy enough of them so that they will have enough to do partial divestment to recover the initial investment cost and make the leftover stocks FREE. Simply, repeat the whole process again at each market bear and market bull to accumlate more of them to generate more cash flow.
Many of us may have Patience but Gut may be lacking in us so it is very hard for us to put in large capital relatively to our account size to buy enough during market crisis; and then hold enough winning stocks for cash flow over decades. 20 years? OMG!
Stock Chart: Olam!
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On Monday, Olam re-test the support at $2.31 and closed at $2.32 with HIGH
volume of 30.49 million shares traded. A long upper shadow occurred. This
is ty...
3 hours ago

Hi,
ReplyDeleteRepeating Bear/Bull cycle investing is possible for some people. But holding for 20 years is another difficult form of kunfu, because you can't resist selling when your profit is more than 1 time not to mention 2 times. You need more practice of Chi Kong & experience to do this. Ha! Ha! i am still a student lay. Very difficult.