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how do you cope with your losses
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derricktan
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05-Mar-2009 22:58
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hi CWQuah couldnt agree with you more... |
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Livermore
Master |
05-Mar-2009 22:04
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Put is very simply. The objective is to win the war in the shortest time with minimal casualities. | ||||
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DnApeh
Master |
05-Mar-2009 21:31
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themasick & GsICk | ||||
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jeremyow
Senior |
05-Mar-2009 21:29
Yells: "Passionate business investor" |
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Who are Mr T and Mr G? | ||||
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DnApeh
Master |
05-Mar-2009 20:54
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Mr T & Mr G have. LOL! | ||||
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CWQuah
Master |
05-Mar-2009 19:51
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Yes. Always call a spade a spade in stocks. Set a hard stop. ALWAYS. Some will argue, yes, if I hold a lossmaking stock for next 20 yrs, odds are the paper loss may breakeven. BUT, they toy with the assumption that the company survives long enough to do that. Not all companies can. Ask the Japanese stock investors from the 1980s era. And frankly, how many ppl have multiple 20-yr timeframes to play with? Losses can be recovered over time, yes, but I sure feel waiting till 80yrs old to be painful! |
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trader88.sg
Veteran |
05-Mar-2009 19:41
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Is paper loss considered loss? | ||||
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CWQuah
Master |
05-Mar-2009 19:09
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Regardless of up/downtrend, the only permanent truth about the market is its continuous variability. Accept that as part of your acknowledged risk, then it's easier to cope with the possible emotional disturbances. |
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jeremyow
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05-Mar-2009 17:34
Yells: "Passionate business investor" |
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Yes.....Let's share more investment knowledge with one another and all can reach our investment objectives together! | ||||
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derricktan
Member |
05-Mar-2009 09:50
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hi jeremy i like it....noboby or methods are more superior than others..just whether is it working and suitable for indiviudal for our own investment objectives. We are all intesrered in trading and investment and i believe we do so here hoping to make more retirement funds, passive income..so let keep on sharing and learn from each other. Let us all HUAT together. |
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iPunter
Supreme |
05-Mar-2009 08:30
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The problem is, when people see the market rise, they will jump in too... | ||||
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787180
Master |
04-Mar-2009 23:38
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Time to short and time to long are over already....don't do anything,equally risky- | ||||
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jeremyow
Senior |
04-Mar-2009 23:24
Yells: "Passionate business investor" |
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Good discussions.....so many inputs for everyone to learn together.....I like the friendly exchanges so far.....Keep discussing on various stock investing approaches.....Everyone will become more knowledgeable once we start sharing our best investing approaches.....There is not one perfect approach........and not every approach is suitable for everyone.......at least through discussions, it is an eye-opener to the various good investing approaches that different individuals have adopted so far...... | ||||
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derricktan
Member |
04-Mar-2009 22:00
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It is equally risky when you have no cut loss strategy whether you are in long or short position, as long as you are in the trading business. I knew of people who were holding stocks lost ten of thousands to 1 million in last year bear run...Poeple who thought OSIM will sky rocket... 12 years gain gone in less than 2 years... |
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trader88.sg
Veteran |
04-Mar-2009 21:41
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Going short appears risky because if one does not have a stop loss in place, the potential loss can be UNLIMITED. Going long appears less risky because the most one can lose is when the stock price becomes ZERO, even though if no stop loss is in place. |
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Livermore
Master |
04-Mar-2009 18:30
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Firstly making money in the market is about riding on a major trend. Why are people buying stocks as the market drops? It is because they wish to ride on the next bull trend. So if you don't wish to trade during a bull run, just close your eyes and open them a few years to see the value of the stock. So what is the general trend now? It is a downtrend. Similarly those who shorted in 2007 Oct and don't wish to trade, just leave your short positions open for 2 years. The monthly charge is negligible compared to your gains. Most don't realise that in a bull market, the interest incurred for margin is so negligible. Your 1st, 2nd and 3rd year interest are all paid off within a few weeks in bull run. So in margin, it is ok to just leave your stock in margin position for long term. Work it out with your calculator. I believe it is mindset thing. People are sold on the idea that borrowing is dangerous so they think margin is a no no. I have mentioned in previous posts long time back, the strategy is leverge only when you have paper profit and in a bull market . In margin or CFD, you don't need to leverage if you don't wish to You mentioned people doing short need to cut loss. The same applies to people on long position. Yes, not everything will be suitable for everybody just like not everybody is the same. It can't be. That is why there are winners and losers.
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lookcc
Master |
04-Mar-2009 17:55
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mayb.
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jeremyow
Senior |
04-Mar-2009 13:31
Yells: "Passionate business investor" |
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Thanks Livermore for sharing with us more on shorting by CFDs.....I await your sharing tonight..... Just to clarify also that I am not advocating whether one should or should not short by CFD. "Risk is not understanding what one is doing." If one is willing to learn and has the right aptitude and suitability towards shorting on margin, one should go ahead and do what is best for oneself (shorting by CFDs). Not all investing approaches are suitable for everyone based on their investing timespan, amount of capital and risk tolerance. Longing or shorting on margin is likewise only suitable for some and not all. It is alright to try out different investing approaches, but one should always adpot a careful stance (a complacent experienced driver is not a good driver.......a careful driver is a good driver) (one has to be careful about human emotions interferring with rationality). |
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Livermore
Master |
04-Mar-2009 13:09
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Short by CFD is just the opposite of long by margin. Reply more when back home
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jeremyow
Senior |
04-Mar-2009 12:57
Yells: "Passionate business investor" |
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Shorting by CFD is not as easy as it seems.....Firstly, one needs to have a disciplined trading mindset which cannot be accomplished by many....One needs to be emotionless when doing shorts and needs to know when to stop shorting and get the profits out or cut loss when needed......all these easily said than excecuted....The human mind is full of greed and fear, and it is not easy to be emotionless and objective.... Secondly, one needs a successful reliable trading system (which even the best trading system can only guarantee at most 70% to 80% success) that can guide one to know when to enter a short position and when to exit (cover back).....Also, one needs to calculate how much is ideal for cutting loss based on one's invested amount so that one does not cut loss too early or too late.....There is also the continual monthly fee charges for CFD to consider so that one needs to decide how long should one keep shorting to remain profitable at the end of the short.... My point is that shorting by CFD is not that easy as one will think it to be....otherwise, why will many private instituitions conduct paid courses just to teach how to short by CFD successfully through their own propriety trading systems....?
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