Read? Following someone investing idea?
Again. Investing forums, cboxes, and blogs made it so easy to know what your favourite cboxers, forummers and bloggers are doing; and you may want to follow them. Monkeys see. Monkeys do.
You may know what they are buying. What to buy is just part of the whole buying equation.
Buying = What + When + How
When you see your favourite blogger bought something e.g. a few bunches of banana and that doesn't mean it is a good time for you to buy a few banana too.
Your favourite blogger may be a 800 pounds Gorilla sitting on high level of cash and gobbling up a few bunches of banana here and there is not going to cause any problem.
But, to a small Monkey on low cash level is different. Just eating up one bunch of banana may cause indigestion if got it wrong. In the stock market, small Monkey can't behave like giant Gorilla.
When you are low in cash, you may actually want to be more patient and ask yourself serious questions.
- Is the current STI level at 3,XXX giving more bang for your bucks?
- Is the Risk/Reward justify exhausting your last few dollars?
When small Monkeys saw a giant Gorilla eating up banana after banana, they may start thinking that probably it is a good time for them to eat some too. But, small Monkeys may have forgotten that giant Gorilla has big stomach so it is quite normal to see it eating so many time.
But can Small Monkey eat like Gorilla?