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.

Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

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.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Friday, 5 February 2021

Real and Illusion Of Wealth In The Stock Market. It is selling that counts! (2)

 Read? Real and Illusion Of Wealth In The Stock Market. It is selling that counts!

Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac's talents didn't extend to investing: He lost a bundle in the South Sea Bubble, explaining later, 'I can calculate the movement of the stars, but not the madness of men.' If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases.  ~Warren Buffett

Read? GameStop falls 42% more despite easing of broker restrictions, down more than 80% this week

Of course; there are real winners taking money off the hard earned savings from pitiful losers who will be sitting on unrealized paper losses for how long! Sigh!

There is always buyers and sellers in the market! Always keep this in our Mind! We won but someone lost it. We lost but someone won it!

"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














16 comments:

  1. {Millennial-favored trading app Robinhood, which started restricting trading of a handful of stocks last week amid an increase in capital requirements from the Depository Trust & Clearing Corporation, now allows clients to purchase up to 500 shares of GameStop. Earlier this week, clients could only buy one share of the company.
    However, investors who own more than 500 shares can’t buy additional shares.} ///// Extract from "GameStop falls 42% more despite easing of broker restrictions, down more than 80% this week".

    i wonder above trading conditions, is it applicable to everyone?

    Hedge Fund company must be very, very happy.

    They say the world is unfair is very true all the time.

    ReplyDelete
  2. And most of the unfairness in this world are not transparent to most of us ordinary folks.

    Some unfairness is just "natural".

    Like U are born talented and i why so nincompoop one?

    Just ask yourself?

    ReplyDelete
  3. Sigh ... as I commented on 28 Jan ... Possibly the end of the beginning here.

    Make no mistake, retails jumped in with both their eyes big big ... for $$$$$$$$. All those motherhood statements about "small guys against unscrupulous Wall Street" are just that, something like experiences are better than things. 😉

    There'll be much more episodes of such foolishness as the secular bull continues, not only in stocks both longs & shorts, but also in various markets like properties, crypto, commodities, precious metals, art, collectibles, etc. Not saying you can't make money or shouldn't participate ... but know what is "normal" & what is "abnormal".


    Re Buffett's "returns decrease as motion increases" --- doesn't really apply to himself though LOL. He practices plenty of motion like derivatives, profit taking, cutting loses, active investing, backroom deals, private equity, structured loans, etc.

    Oh I forgot, he did say "for investors as a whole". Just buy S&P500 index & sit still for 30 years. 🤣

    ReplyDelete
    Replies
    1. Spur,

      That's sacrilege!

      There are bei kambings out there who "believe" Warren Buffett is a Buy-and-Hold investor...

      To them, Warren Buffett is like "Buddha". Just sit still can oredi!



      Delete
    2. "Just buy S&P500 index & sit still for 30 years. 🤣
      Reply"

      Unquote:-

      But it can be the truth also.

      i think i had read some one just bought S&P500 index even at it's PEAK PRICE at that time and forget about it; and after 20 or 30 years he made quite a good sum.

      Imagine if he bought it at lowest Bear's price of the time, how much more profit he would have made?

      It seemed he didn't have to worry about sequence of return too as he only bought once and forget about it.

      Anyone young and game enough to try for 20 to 30 years?

      On the other hand, can we guarantee how long we going to live even willing to miss all the "excitement" of investing in the market?

      Delete
  4. For many investors, "returns decrease as motion increases" holds true. For others, the opposite "Returns increase as motion increases" holds true. Renaissance Technologies's short-term, high motion Medallion fund surged 76% in 2020. Their other longer-term, slower motion funds tanked 22% and 33.58%.

    Many different, even contradictory ways to make money from the markets. Certain Kungfu more suited to some people. It's a long arduous path to find out and learn the right Kungfu for the right person.

    ReplyDelete
    Replies
    1. For most of us as retail; we may need more than one full market cycles of Bull-Bear-Bull-Bear or Bear-Bull-Bear-Bull to validate our kung fu.

      Delete
    2. Ya! Read about all the types kung fu people practise in books, articles, etc... b4 U think which one is most suitable to your characters and temperament.
      Even b4 U plunge into the market.

      Then choose one main one and practise it.

      After one and two B/B cycles, U will know suit U or not.

      And i am very fortunate i pick correctly for my temperament because i know i don't like too much Politics even in the stock markets.
      Aka like the recently Reddit WSB saga.

      Then throughout the journey U continue to learn & pick out minor kun fu from others - like IPOs which many people say IPO=It's Probably Overpriced.

      And it's quite true most of the time but there are GEMs in IPO once in a blue moon.
      Then U have to tikam,tikam lol. Usually my whole family will apply for the tikam, tikam.

      My experience is mine and not yours.

      Delete
    3. Ya! Read about all the types kung fu people practise in books, articles, etc... b4 U think which one is most suitable to your characters and temperament.
      Even b4 U plunge into the market.

      Then choose one main one and practise it.

      After one and two B/B cycles, U will know suit U or not.

      And i am very fortunate i pick correctly for my temperament because i know i don't like too much Politics even in the stock markets.
      Aka like the recently Reddit WSB saga.

      Then throughout the journey U continue to learn & pick out minor kun fu from others - like IPOs which many people say IPO=It's Probably Overpriced.

      And it's quite true most of the time but there are GEMs in IPO once in a blue moon.
      Then U have to tikam,tikam lol. Usually my whole family will apply for the tikam, tikam.

      My experience is mine and not yours.

      Delete
    4. Ya! Read about all the types kung fu people practise in books, articles, etc... b4 U think which one is most suitable to your characters and temperament.
      Even b4 U plunge into the market.

      Then choose one main one and practise it.

      After one and two B/B cycles, U will know suit U or not.

      And i am very fortunate i pick correctly for my temperament because i know i don't like too much Politics even in the stock markets.
      Aka like the recently Reddit WSB saga.

      Then throughout the journey U continue to learn & pick out minor kun fu from others - like IPOs which many people say IPO=It's Probably Overpriced.

      And it's quite true most of the time but there are GEMs in IPO once in a blue moon.
      Then U have to tikam,tikam lol. Usually my whole family will apply for the tikam, tikam.

      My experience is mine and not yours.

      Delete
  5. See only once but display 3 times.

    Many times like that already.

    Sorry, CW8888.

    Even if i delete people will think WT@#%*?

    ReplyDelete
  6. wireless adaptor from CHINA but it happens even from my Samsung Tablet built in WIFI.

    ReplyDelete
    Replies
    1. Your service provider WIFI unstable. LOL. Time to power down and up your WIFI box

      Delete
  7. If anything, maybe see what my Wifi provider says.

    ReplyDelete
  8. If anything, maybe see what my Wifi provider says.

    ReplyDelete

Related Posts with Thumbnails