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Old 18-05-2013, 09:16 AM
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platinum_member platinum_member is offline
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Having went thru the financial crisis where at the peak of the crash i lost (paper) about 2 cars in the stock market even where i was holding blue chips, i learnt that you cannot be too sure when it comes to investment.

Prices dropped drastically, and like you are considering now, i dca. Then it dropped further and i dca again, again, again, until you see the loss ballooned and you cant dca no more because u cant tahan the loss and u also run out of bullets.

Thankfully market rebounded and i recovered the money, because i dca. But note that i only followed the ride down and the ride up, i didnt really make money then as my average cost was when sti ard 2700. (I dca too early). And you need to really have the holding power and pray the crisis will pass and your counter does not fold.

Now i learn not to be too greedy or excited to put a lot of money into things or counters i like. I also keep bullets available to pick up things when they are sold down, and still keep some bullets in case they sold even more.

I also will not put more than a certain percentage of assets into one counter or something, eg pm, unless property.

We are small fry playing along big fishes. They are the professionals, we have to be careful not to get eaten.

But thats just me, playing safe.

I know of people who take huge bets in the property market at the right time and make ton and tons of money, i also know of people who lost their shirts and pants playing in stock market and could never recover.

How will you play?

Have you heard people say not to put all eggs in one basket? There are successful people who will tell you to put all eggs in the same basket and watch that basket carefully.

Another thing i would like to say is, how much readings, research, analyst report can you trust?

Reports can still be bullish and suddenly, price crash. Analyst may be publishing to make people buy or sell, to generate commission.
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Last edited by platinum_member; 18-05-2013 at 09:33 AM.
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