As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Value Investing
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Technical Analysis and Charting
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Sunday, 21 November 2010

To make money fight 'fleeing instinct'

Read? Stop loss or Cut loss?

By Philips Loh, invest, Nov 21, 2010, the sundaytimes

Some key points noted in the articles:

  • The urge to cut loss when stocks fall works against 'buy low, sell high' tactic
  • Qualities of a good investor - The most successful investors are those who are able to overcome their innate fear and greed during wild market gyrations, and discern real risks, as opposed to perceived ones. They have a keen awareness of their limitations and predictive powers.
  • Associating the wrong reasons with a profitable trade can be damaging to our investment quotient in the longer run.
  • We must not forget that the markets are full of predatory players who make a living out of having small investors for lunch. These professionals do so well because they are experts at tricking retail investors into reaching wrong conclusions. Therefore to do well in the investment game, investors must be keenly aware of their instinctive ability to detect a pattern and react accordingly, overcome this instinct. Only then can they raise the probability of scoring gains in the game.

Read more? Portfolio Management - Stop Losses?

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