Join our investing community

Trading XAO: Selling with all of reasons but...

Discussion in 'Shares' started by wdongli, 16th Jun, 2011.

  1. wdongli

    wdongli Well-Known Member

    31st Mar, 2010
    Do you feel painful in the selling days? A little bit to see the paper profit gone. Do you feel crazy since it seems no tomorrow? Not really! I tightly follow my rules to buy for "no loss" with the senses to make me better organized, self-reliant, disciplined, and analytical. We could not control the market sentiment and what happen around the world but we could change our behavior and build up the moat around our own capital.

    There are dead bubbles in the market caused by GFC. The earlier they are gone the better the market is in next financial year. I don't see too many dead bubbles in the Australia Stock Market. Too many burnt the money since the May 2011 because they felt no hope but at last the discount to value would work. Aussie market players now just lose the faith and the storm just make them feel worse. You paid $0.50 for $1 asset but the market could push the price lower. If you trust your holding have better value than the price, you just need to extend the holding horizon longer.

    All of us know we have two speed economies. The old economies are better off. All of us know XAO has moved down out of its historical channel set up in the time of New Economies between 1987 - 2000. Do you believe the old economies better than new one in Australia at least?

    In the storm you could not see too many good things after you seen the capital houses were fired by their owners for nearly 20 months in Australia. It is the time about basic and logic.

    What's the hell people are doing in Australia stock market? We have unemployment rate less 5%. We have the highest interest rate. We have the resources everyone want. We have the most stable political and financial systems. What if double dip happens? We could easily reduce the interest rate to 1% even it is unlikely in my view.

    Yes, we always say we need to be cheerful when everyone else fearful. So a market player if he really want to be a master in the circle of the market, should check only one thing, the margin of safety! That is if everyone else is a loser, could you just have little loss or no loss for your portfolio? Why do I said about portfolio? You need to be organized, disciplined, self-reliant and analytical to run your portfolio.

    So if we are good enough for our own matter, we don't need to cry for the sky which has been there for millions of years. We don't need to repeat the bad news which are good for great discount. It could greatly reduce our overlays of our market playing. Someone would say I am gambling. I am not. It is obvious if you want to fail in the market you just need to burn the money on fire. It is the time of irrationality of exuberance at the bad time. I am standing on the height of the herd effects and macro economical cycle...

    I am happy to see the selling off. After all of dead bubbles gone, what could you expect? All of you holdings have much greater value than the price! Of course you should not pay too much before. I paid the reasonable price for the discount so I could wait patiently with a better mind, behavior, personal characteristics.

    Let the storm stronger and after that life in the market would be much better as GFC and V-shape recovery told!

    Cheerful for the storm in the market spring if not in its winter! Get ready to run under the rising Sun as a lot of us did after the November 2008!

    "White Cat or Black Cat?" A question triggered the new China in this world not anything else! It is simple but then it shocked all in China and it started the pondering and mulling about where China should go. It changed the minds of generations around 1977! I was one of these generations.

    Who care if both they could catch the profit mice in the market! Could we get a cat who is great for the profit mice? That is our problem. How could the cat get the mice? It is its job even you have to know what cat for what mice? How could I get your swans at the dirty-cheap fish's price? How could I sell my dirty-cheap fishes at the swans to you and you would be still greatly happy? That is the problem bother me a lot!

    By the way: never and ever let yourself become extremely panic to burn the money and if you are organized, disciplined, self-reliant, and analytical, you should not be crazy to burn the money!

    Never forget if you are crazy, you would be abused in the market. Remember pains in some extension are good for health but too much your mind would be brunt down as you are idiots in the market.

    In IT bust I acted as idiots for nearly two years. Now I just want to buy when everyone else wants to sell and sell when everyone wants to buy with the confidence on the sky!

    A excellent talk in HC:

    One wrote:
    "... but people who have lost significant amounts of their money through mis-management by company directors will seek any avenue to either seek justice or compensation. This company has acted in ways that have not benefited shareholders and deserve to be held accountable.

    I feel sorry for new investors if the old ones act to their determent but they should have done their due diligence and been aware of the past actions of management before they invested in the company.

    In this case I have the directors rot in hell. "

    (The words were full of angry flame, which could make him feel better but the money has gone.)

    Another replied:

    "You evidently haven't read my post very carefully, as I have already stated that I was one of those who lost (substantial)money on this company. (wdongli: honest and brave to admit the failure due to whatever the reasons)

    1. But the past is the past and this action will NOT bring our money back.

    2. But it will result in the company's (limited) financial resources being diverted and diluted on legal action, resources that could be spent on advancing its future.

    3. It may also result in the new (substantial) investor reconsidering the value of his investment.

    And as a result you would have to wonder about the real intentions of the complainant when he had plenty of opportunity to take the appropriate action a long time ago.

    This action is silly, bordering on the insane,as it will NOT bring our money back. Revenge may be sweet but it will not make you rich!"

    (Who is wise and hopeful in future? Who is painful, refusal, and crazy to revenge without any ideas how the exploration miners take the risks for some killing and along the way a lot of failed explorers... You should know what you are doing and the consequences. Never forget the consequences themselves could not tell who is bad or good, wise or stupid, or anything you want or not want!)

    Wdongli's Blog If you want to come back you could click "InvestEd" under "BlockRoll" there.
    Last edited by a moderator: 16th Jun, 2011