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A or B
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lawcheemeng
Master |
08-Aug-2009 16:54
Yells: "fly me to the mooon" |
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as u can see difference in the way each person trade, or hold. there fore it u to decide how u want to do it. i suggest learn all u can Be it FA or TA. then one day after many lesson u learn frm this stock market , u will sure find one that suits you. happy trading .cheers n Huat ah!!
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fartist
Member |
08-Aug-2009 16:24
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Thank you all for your kind replies! I'm sure all of us have somewhat benefitted from this discussion :) | ||||||||||
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iPunter
Supreme |
08-Aug-2009 15:52
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Buying in March is the best thing that you ever did... because at that time, people are dumping stocks like nothing... And they are shivering from big losses because they've been holding, and holding, and holding... all the way down from the market peak to the bottom... |
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Juzztrade
Veteran |
08-Aug-2009 13:40
Yells: "Techincal and long term investor" |
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One example is SPH. I bought at 2.38 in March 09 and I plan to hold it till the coming CD at the end of the year. By then the shares price would be much higher. Just my view. |
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iPunter
Supreme |
08-Aug-2009 13:30
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As long as you have been waiting and waiting patiently for the big dip and then buy, you're okay... hehehe... | ||||||||||
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des_khor
Supreme |
08-Aug-2009 10:33
Yells: "Tell me who is the God or MFT from this forum??" |
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Like the market now buy n hold is the best strategy.. | ||||||||||
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wongmx6
Veteran |
08-Aug-2009 06:55
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I strongly believe "buy and hold" is better. Having said that one must have a very strong heart and faith. It's not easy when your have a very strong sense of thunder storm is coming and you don't run to the shelter first."Timing to buy" is hard to predict but it's very important too. If one bought at peak of 2007. He really need to Hold long-long loh. |
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jeremyow
Senior |
08-Aug-2009 01:41
Yells: "Passionate business investor" |
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Another fresh perspective into the question of Buy-and-Hold versus Buy-Sell-and Run and repeat the process again and again. Just ask any investors* who have so far adopted the buy-and-hold approach for a few excellent counters that they have bought at a cheap price some years back (e.g. Wilmar International and Keppel Corp) and still held on to their shares now. Do you think they regretted holding on to their shares bought some years back at cheaper valuations? Some years back, Keppel Corp was still trading at $2 plus range. Now, it is trading at $7 plus range and remember this is still a recession market pricing. Those that held on to its shares until now at least still sit on a hefty 200% paper profit and approximately 15% annual dividends yield on current dividends payout. So, it is just a question of asking oneself whether such excellent counters (with strong underlying businesses) will forever trade at current prices even 20 years down the road. If one is patient enough, the longer their shares are being held, the more value they will be worth later on. The increase in intrinsic value of their business will not come one or two years time, but gradually many years down the road. This is a solid and sure way of accumulating value in investing. One just need a hefty 1000% increase in the intrinsic value of a company's shares (which translates to for example Keppel Corp trading at fair valuation of $22 / share say 15 years down the road). I am not market fortune teller, but this may be realised to a certain degree of certainty for companies with strong established and growing businesses. So, one's invested capital will be 10 times greater in value say 15 years down the road. If one invested $500k in that one company that shows this certainty of increasing it's intrinsic value 10 times in 15 years. His invested capital will be worth $5 million in 15 years time without doing anything at all (and it's just buy at right price and keep holding on to the shares of only excellent businesses). The above proposition does not include dividends that will have grown over the years. So, 15 years later, the same company may be paying out $1.50 dividends per share for a $22 per share value and that translates to 75% future annual dividend yield in 15 years time (based on same shares still held on at $2 plus per share range for example). There maybe stock splits along the road when share prices go too high. However, the future dividends yield is still the same whether the shares are split or not as long the company pays increasing dividends through the years. It is difficult to imagine such a thing may happen. However, this compounding effect has already worked for many well-known value investors. So, should one hold on to the shares of excellent companies and hopefully see better deal in long future ahead (in terms of increasing shares intrinsic value and dividends yield) or keep buying and selling for short-term profits through the years? Only oneself can provide the answer. <All companies used in my discusssion above is only for illustrative purposes. This is not a call to buy or sell any mentioned company's shares. The illustrated figures in my discussion are also hypothetical numbers and may not indicate certainty of the figures of intrinsic share value or dividends yield realising in future. I am also not trying to force-sell any investing approach mentioned. Everyone is absolutely entitled to their own way of investing. All the best in investing!> Refer to above *I believe there are not many such investors, though there will still be a handful who have held on to the shares of such excellent counters even now. |
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dealer0168
Elite |
08-Aug-2009 00:45
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Btw i'm refering to those that buy n hold.
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dealer0168
Elite |
08-Aug-2009 00:42
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Quite truth. Unless buy at real bottom. Or buy when real recovery start (n that means no more serious back track on STI index). People that buy at high n hold at high........... than that is a wrong investment choice. But now, we are not at high. Cheers.
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richtan
Supreme |
08-Aug-2009 00:30
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Hehehe... My sympathy to tat moron/idiot whom enjoys giving me bad rating, I sympathise with him/her for accumulating bad karma for himself/herself and his/her next generation. This person is worse than a beast with no love and concern for their next generation, whereas tat bad rating does not cause me to lose an iota of blood, a pound of flesh or a single penny. See my below post
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richtan
Supreme |
08-Aug-2009 00:10
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A TA practitioner like me will never believe in buy n hold, simple logic, just pullout any long term chart (3 to ten years) and look at the roller coaster ride up and down, most charts look like a flame or mountain summit, if u were to buy at the foot or any point along the mountain/flame and hold long term, u may end up selling at the same price or even at a loss, unless u are extremely lucky to sell at the summit. In a nutshell, whether u make money or not depends on luck, but with TA skill, if u know how to spot reversal patterns, remember the 3 golden mantras (do a search on it), know when to cut-loss and let profits run with trailing stops, u make make more money, less those losses as TA is not infallible.
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iPunter
Supreme |
07-Aug-2009 23:51
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When a stock is rising, many will quickly sell it off and grab the profit. Others will hold and wait for it to go higher... Both types will lose out, since they do not have any guide to TP and SL. Thus the solution is for noobes to be intimately conversant with price charts before talking about buying and selling stocks.... |
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dealer0168
Elite |
07-Aug-2009 23:41
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TA to me, is meant fr short term trader (my opinion). Its useful for us to profit more with good / better entry price. A true investor (long term investor) looks at timing n not entry price. Bc they will be holding their stock for quite long/ quite a while.................. To be frank, current situation, u may want to consider buy n hold strategy (n that is yr B option). Bc market sentiment is recovering.................. And i feel 3rd qtr will be the trigger point. So maybe this round we can hold our stock longer abit. (Just my opinion)
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fartist
Member |
07-Aug-2009 21:26
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Another thing to consider here is if we buy at 2.20 for it to double it takes 4.40 to triple 6.60 But lets say we can't always spot the bottom and we got it the second time at say 2.40 To double it needs 4.80 and triple 7.20 7.20 and 6.60 thats quite a diff. |
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fartist
Member |
07-Aug-2009 21:15
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Im thinking of that too. We are not always right and TA is not always 100% accurate. So there's a part of me thinking to go with B. But there are times a correction is very imminent. So guess what? I did both.
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vthnay
Member |
07-Aug-2009 21:08
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I am also very interested in the answers to this 'A or B' scenario. Can the seniors and veterans in this forum give your input. It would give us newbies a good idea of which is a better option in the long run - to buy and sell, buy and sell or buy and hold. Cheers!
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iPunter
Supreme |
07-Aug-2009 21:02
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If you just trade blindly without a simple TA chart, you will fart when it corrects lower than you can take... | ||||||||||
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lawcheemeng
Master |
07-Aug-2009 20:54
Yells: "fly me to the mooon" |
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if ur timing is right every time, buy low, sell high then correction low buy again, then repeat of course A is the better chioce lah. however timing may not be right every time.mah. so they r loser in the stock market.. .
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fartist
Member |
07-Aug-2009 20:38
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Lets say we have 20k and we invest in 2 stocks. Stock A we bought at 2.20 and it went to a high of 2.70 and we sold there. Cause we feel there might be a correction or it may not and we may not be sure if it'll hit the low of 2.20 again. So we intend to buy at a price lower than 2.70 and repeat the process again. Stock B we bough at 2.20 also but we don't sell it, instead we intend to buy and hold all the way. Riding up with the up and downtrend. Which scenario would be the best? Given then we do not have additional money to average down. |
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