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Benighted at very beginning...

Discussion in 'General Investing Discussion' started by wdongli, 20th Apr, 2010.

  1. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    A interesting thing is that nearly most of retail market players jump into the market to enlighten their life for finance independence. A very bad thing is most of them after jumping into the market could not get the independence but worse to lose part, most, or all of their hard-earned money.

    I am one of the retail market players. Unavoidably I cheered for the IT boom insanely, obstinately refused to recognize the trend change, and successfully finished a cycle as a new market player: getting excited by some new; fortunately getting more and more paper profit; feeling red hot of the head for more and more with the hope the money would grow up to the moon; and at last losing all of the capital and profit.

    After the mania was gone, the capital and paper profit were gone too, which were the money about 10 years' salaries. The pains were huge. I tried to forget the pains but the consciousness forced me to start check what's wrong and why I was so stupid.

    I felt then I needed to start some self checking in my mind for a self-consciousness. As everything when they appear in human life, the early time around them usually and comparatively benighted. On the one hand, we are ignorant, prejudicial, and a little bit superstition on the lucks. On the other hand, the market is full of uncertainties, movements caused by its bipolar distortion, delay of the economy fundamental, and individual events of the specific shares. Unfortunately until the circle of jumping in, getting some or big some, losing all, finished, I didn't know what above.

    If anyone doesn't know enough to something, it would cause him to be surprised, shocked, or drop into the hell. Looking back, most of us acted as the slaves of the market's sentiment, cheerful or panic news, and the gloss or dismal of the economy appearance. We still worked in the dark age as the tools to work for others. We could not master the knowledge, our instinct, and the ever-changed market.

    We need the self-conscious movement if we really want to be the successful market players. Could we avoid to act against the life logic and common senses? Could we put the defending first and offending second? When we strike out for profit could we inversely question what if we are wrong? When everyone is fearful about the future could we inversely think and find the chances?

    Did you ride the recovery in full? Did you sell on the fire in the crisis? Are you too fearful or too greedy for the future? What's the bottom lines we should never cross? Do you get the loss and stop the loss too regularly but have nothing to leave in your pocket?

    Are you struggled in the benighted and dismal mood? Chances and risks depend on each other. Want to get the chances but how to deal with the risks. We need some intelligent mental frame to be qualified market players. We need never waste the bust and crisis for the boom and grand party in the market.

    Yes, but how...?
     
  2. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    Do we know what should do in the war?

    In the war, if you were the soldiers, you would not have too many options but you would have to defend yourself under any conditions to survive.

    In the market, if we worry about the survival, we could stay in the sideline or at home without anything to do. Don't do means no risks to your capital.

    The problem is we just want to get the money really! We forget the first rule in the market you have to protect your capital without losing the chances as Bufftett said no loss and never forget no loss to buy.

    We seem know the above very well but we just never follow them and don't act to follow. We, as traders, raise the flag of "stop loss" and under this flag we keep to make loss, regularly stop the loss, and at last forget the stop loss one time and get some fatal casualties. Could we avoid the fatal loss?

    If we could trade or invest without the loss, we could take time to get the chances, and if we keep to update our minds we could learn how to find the raining gold even we are not clever enough or fool enough.

    Human has the capability to educate himself, right? The bottom line is don't take the loss or risks we could afford; don't give up to grip on the knowledge about the raining gold; don't make the silly mistake against the basic market rules based on the common senses and life logic.

    Where is the raining gold? Don't ask me now but I do know Buffett and Soros have got some partly based on their intelligent mental frames and partly based on their lucks. Want to win? You need the lucks and we need to remember that the lucks favor the prepared hand without the fatal loss in the market.