Hi Jackjames,

You will be surprised what these kids are capable of. Trust Us. We have seen and we are believers.

SGDividends Team No 2

www.sgdividends.blogspot.com

I think that was a pretty good post. It is important to preserve your capital and to spread your entry. No one knows when the market will bottom or top.

Blogging at moneytalk.sg on the stock market, ETF and anything to do with money. 

I already typed so much about my buy set up and how I only average up to a certain price range and not keep avearging up. I also mentioned it is more applicable in a bull market.You also need to determine when to start to make your first buy. I also pointed out averaging up in bear market is tricky. I also pointed how when you average up to a certain point and it does not work out and when you sell, you either break even, make a bit or just lose a bit.

If you put all your lots at one price and it is wrong you can potential lose a lot. If you don't put all your lots at one price, how are you going to plan your buy set up? Surely not average down like all the way from like $1.50 to 30c. Averaging up is like "testing water". You are testing whether the uptrend is  real. Of course when you make your first buy at 20 lots, you don't average up at say 50 lots at your next buy.

Some like to buy when price plunge down. Do you put all your lots at one price when the price plunges down? One is betting that the next day the price will go up. You cannot be lucky all the time. We let the the price stabilise and gradually plan the buy set up.

If you fight a war, do you fire all your bullets randomly? You are dead if you have no more bullets and your enemy is after you.

Only recently, as recent as a few months ago, the market was roaring upward and stocks rose like nobody's business.

In that frenzy, many bought and bought more of the stocks that were 'strong' and which keep going up, hoping to grow their retirement funds.

A lot of people practised averaging up ie. keep on buying more of good strong blue chip stocks, a la Nicola Darvas style...

These are the people who are wiped hardest... Now their stocks are only a small fraction of their former value,  regardless of the mythical 'good fundamentals'...

I guess being students, they do not possess much experience. But then again, even people with experience may not do well in the market. I guess the same goes for intelligence. Even Issac Newton lose a fortune in the stock market when he went to chase a stock.

 Blogging at moneytalk.sg on the stock market, ETF and anything to do with money.

Did the students lose that much money by buying stocks?

I would have thought such brilliantly intelligent young people like them would have sold (ie. shorting), instead of buying. This clearly shows what ma intelligence they really have. 

I am not saying this to belittle them, but simply provide valuable priceless feedback of their folly.

The big question is, why didn't they short? I suppose they must have studied too much economics,  but neglected to learn about the true character of the market beast itself...




No wonder they lost! And they deserve to lose! simply because they are foolish. This is an unbiased matter-of-fact comment, and not an insult. 

In the end, the question still lingers as to why they have not sold/shorted?
The stock market is not a one-way street!!!


 

Try to  become good friend.. Your golden ticket to a good job then. Probably listed company directors sons..

I think it is good that they are teaching financial planning in school these days. This is so much more practical as compared to subjects which they learn in school which I doubt they will ever use in reality.

 Blogging at moneytalk.sg on the stock market, ETF and anything to do with money.

please, they know shit about investing... at this age, just go and learn how to find variable, x , y , z... and not playing big or small, which is up or down of 1 stock..

if no fundamentals, don't talk about reading the details of FA or TA analysis.