by Aspellian » Fri Aug 19, 2011 6:40 pm
Chinaman wrote:Of late, investor easily got panic and such behavior is irrational.
Well the lower the index dive, logically the more you buy.
Patient is the winner, will we see another few 100 pts drop???
Hi Uncle China,
I agree with u. Theoretically - one should be greedy when others are fearful. and if one has DEEP pockets to keep on averaging down then should be fine. I have friends who managed to do that very well by buying fundamentally strong stocks eg. Ho Bee and ARA during the last crisis. So the key is to identify companies whereby their business fortunes will continue to grow with strong cashflows despite this market turmoil...
or simply just stay on the sidelines and watch... cheap will get cheaper. Its irrationality for STI then to hit 1400 points... as if it is end of the world. . so it just shows everything is possible.
So i also reminding myself not to be too pessimistic and be nimble. If mkt turned around then just buy lor, doesnt work out? cut loss and move on. just keep things simple.
PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE
"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet