BOOOO CHOOOW CCCCCCCCCCC AAAAAAAAAAAA !!
BCC !! BCC !! Should we "AVERAGING DOWN" ? NO !! NO !! NO !!
Rule number 1 : Dun lose money
Rule number 2 : dun forget rule number 1
If u bought 3,000 ABC shares at RM 1.00 (cost RM 3,000)
now price 90 sen ... should u buy more ?
wat happen if u buy another 3,000 ABC at 90 sen (cost RM 2,700) ?
if ABC go up to RM 1.00 back ... u just made RM 300 profit ... from your RM 5,700 investment (5%)
But this is the ONE QUESTION u should never ask at first place. It is USELESS, BASELESS and MEANINGLESS.
The correct question is ... wat will happen if after buying more at 90 sen .. ABC drop to 80 sen instead which will translate into RM 900 loss (or negative 15% !!). To recoup or break even, the ABC share price need to rise to 95 sen from 80 sen ... a whopping 18.7% increase.
IF u continue to average down or afford to buy another 3,000 ABC at 80 sen so that u think u can break even when it raise back to 90 sen. But are u able to suffer calmly if it drop to 70 sen ... which will cost u a paper LOSS of RM 1,800 (or -22%) ?! At this point ... trust me, your mind will start to shut down almost completely ... u cannot think properly, u will start making more wrong decision or weird and even dangerous decision, like wat if i go borrow money to average down some more so that i can make even more when it shoot up. At this point ... your mood is bad, u sleep restlessly, having nightmares, less talkative, more angrili ... unable to focus on your day job ... and worst ... u got fired.
If u do not average down at 90 sen and 80 sen .... then when share price drop to 70 sen, u onli suffer RM 900 loss ... half the loss if u averaging down. And u will be veri grateful for not averaging down. Even u suffering loss, but u know u could be worst ... will counter back any mental distrubance cause by the loss. So, your mood will be more or less neutral, u still can laugh, and able to absorb the lesson learnt from the market crash.
The MORAL OF the STORI is ......
.....
....
.....
......
......
......
....
....
..
..
..
BOOOOOO CHOOOOOOWWW CCCCCCCCCC AAAAAAAAAAAAAA !!!
CHOOOOOOW KHAAAAAAAAAAA CEEEEEEEEEEK AAAAAAAAAAA !!!
(no run die, run leg break = better leg break, leg break can heal .... UNDERSTAND BOH ?)
More articles on BOOOO CHOOOW CCCCCCCCCCC AAAAAAAAAAAA !!
Okay ... short term veri BULLISH ... who no buy today, will go jump building next week.
Created by leno | Jul 31, 2015
3rd MOST DEADLiest WAVE is COMIN !! BOOOOH CHOOOW CCCCCCC AAAAAAAAAAA !!!
Created by leno | Jan 19, 2015
Discussions
4 people like this. Showing 32 of 32 comments
Agree.....avoid average down..........cut loss & don't buy back same counter immediately.......
2014-10-11 14:10
leno started her BCC series on 8/9/14,till now she has been proven more rite than wrong.
2014-10-11 14:36
cutie cat ... i love the way u purrrrrrrrrrr :) :) :) do u know that the purring of cat is a natural healing mechanism ???? great advice from panlai cat !
2014-10-11 15:44
Hahahaha! Leno is half right! Don't average down! Especially stocks his recommended! But it's okay to average down on high growth stocks!
2014-10-11 15:54
IF WE FEAR WHEN MR MARKET FEARED & WE BUY WHEN MR MARKET BUY WE ARE DOOMED TO BE DISAPPOINTED,
We need a logical mind to control our emotion. Emotion should never rule our investment decision. Emotion is not brain - it comes from
E - Motion or Energy in motion (See www.mindreality.com)
Let Calvin give some Real Life Examples
1) When Highland Towers Collapsed in Ampang I met one guy from Sitiawan, Perak.
He was so worried when he arrived in KL. He thought that all tall buildings in KL will soon collapse on him! I had to assure him that it's OK.
2) When 2 planes Crashed into New York Twin Towers SIA (Spore Airline) Crashed from S$15.00 to S$7.00 a share. A dropped of over 50%!
Only 2 planes? But CNN TV Showed it Round the world 10 million times! As if 10 million planes Crashed?!!
It was the best of time to buy SIA at S$7.00. Only in a short will when Emotion died down SIA rebounded to S$15.00. Life goes on!
3) Right Now - Many Expect Market To Collapse into a 2nd Great Depression
And Fear Mongers are Fully Charged With E - Motion!
Energy Without Brain. Or Brainless foolish acts which in more sober times we will later regret.
2014-10-11 23:43
My Dear, in stock investment we are Only worried about long years of Bear market where there is like lost generation and long years of sub-par returns.
We Only talk about it when it is there ya.
2014-10-12 11:48
Well i do agree Not to average down and doing nothing. Very sound advice. TQ
2014-10-12 11:54
HOT TIPS BY MANY EXPERT:- NUMBER 1 INFO MUST HEAR IN BURSA... WHAT????
1. WORRIED ABOUT BEAR MARKET??? YES U SHOULD....
2. SHOULD PULL OUT MONEY?? NO NEED TO PULL OUT MONEY ALL MONEY..JUST CHANGE COUNTER
3. SO WHAT TO BUY?? DEFENSIVE STOCK
4. WHICH COMPANY?? TMCLIFE..
5. WHY?? BECAUSE IT IS LEADING DEFENSIVE PENNY STOCK IN BURSA
MUST BUY.... AS SUGGEST BY MANY EXPERT..... DON'T WORRY... BE HAPPY...
TMCLIFE?
TOTAL MONEY COMING.... LIFE
NUMBER 1 AND LEADING DEFENSIVE PENNY STOCK!!!! IN CURRENT MARKET SITUATION....PROTECT YOUR INVESTMENT.... BUY DEFENSIVE .... THROW SOME CYCLICAL STOCK...
FAST IN EVERYONE... MUST Q NOW... ATTACK!!!
EXPERT SUGGESTION:-
http://www.thestar.com.my/Business/Business-News/2014/10/11/Emerging-markets-recovering-Mobius-sees-segment-dominating-world-economy/
2014-10-12 11:54
read this.
The end of QE3 will probably cause the D.J in a longer bear-mode than QE1 and QE2. Therefore, how much you can average it down ? Good luck .
http://gorengaddict.blogspot.com/2014/10/why-stock-market-dropped.html
2014-10-12 12:04
End of day, to make Money, it is your stock picks.
Your confidence level depends on your stock picks. Cash or keep investing, it is your stock picks. Long term investment or not, it is your stock picks. Average down or Not, it depends on your Stock picks. Recession or No, does not matter, as long as your stock picks perform, Fair?
Economics noise? What does it make a difference? as long as your stocks perform, right?
Even in Bull market. we might lose our pants if we don't care about stock picks and valuation and know nothing about Business, fair?
2014-10-12 14:19
stockoperator, You are very fond of riddling your way through and you like riddles, don't you ? hahahahaha...
Can you be more clear cut and more concise in your expression next time instead of persisting with your riddling thoughts hahahahaha
2014-10-12 14:27
my dear, 2/3 down.1/3 up. Is it not your stock picks? Even 8/10 down, 2/10 up, is it not your stock picks?
as long as my stock keeps performing, why do i care? If you can understand then Good.
2014-10-12 14:36
stockoperator, OK I do understand your riddle now...so you claim that you are always UP no matter what the market is? In that case you performed much better than Leno. Is that true? Or No Le hahahahaha
2014-10-12 14:40
Another one of his STUPID nonsense posting. Kindly do not post rubbish like this; attention seeker. Waste of time.
2014-10-12 14:43
Sunztzhe, you just need to care about your own stock picks to make money. End of story. Not fair?
Even the market tumbles but your stock picks perform. Cannot meh? Market is in constant of Great rotation and weeding out Weak holders and losers and awarding winner. Not fair? Too complicated for you?
2014-10-12 14:44
to summarize what stockoperator means:
DO NOT BLAME OTHER PEOPLE BUT BLAME YOURSELF.
2014-10-12 14:46
average down is double edge sword ... may be poison for mr A but honey for mr B ... mostly depend on how well u know the counter or how confident u r and base on what and wat strategy , plan while u start average down ...
2014-10-12 15:05
Suntzthe, i remember Stockraider once told the story of High Hurdle Rate of Investment, remember?
Once the challenges is greater, your stock picks criteria must be stricter and be more defensive and gear towards more quality and look for more Margin of Safety.
We do learn some sound advice from Forumners and Articles do appeals to lots of traders and speculators.
2014-10-12 15:08
stockoperator, OK got u ...and I will riddle it just for u ...u just go for G spot stocks where it takes great immense investment skill using high hurdle rates to find and locate the sweet G spots and that really makes the difference between weak holders and losers from the WINNERS like u !!! hahahahahaha
2014-10-12 15:11
ya...Beach boy like u using high hurdle rates to identify terrific G spot stocks...will be a terrific cum exhilarating experience during this trying times...wish u lotsa luck OK.
By the way, please count me in as well on your G spot stock search hahahahahaha
2014-10-12 15:19
The drop in price of crude oil had spooked the market n created great uncertainty on the global stock markets. There is new evidence that the drop in crude oil prices is being manipulated to punish Russia. The key question to ask are
- will global consumption of energy decrease or increase in the future?
- can the supply of unconventional shale oil have a sustained significant impact on future crude oil supply ?
The global demand for energy produced from crude oil n gas will continue to grow as more n more emerging market countries in former Soviet republics, Asia n South America aspires for US n Western European lifestyle. This can only mean that the demand for energy will increase in the future. Major oilfields in the world r facing declining production n many have resorted to enhanced oil recovery to try to maintain production volume.
Unconventional shale oil n gas accounts for 2%-3% of world supply. The unconventional shale oil n gas has maximum production during the first year n thereafter the production tails off at an exponential rate where the maximum life of the shale field is 10 years. It may even be shorter.USA is now a gas exporter but how long can USA continue to export unconventional gas? The export may not be sustainable over a long time period as shale oil n gas production will be unreliable.
So the key question to ask is how long can the Price of crude oil remain at around USD 90 given that the people in the emerging economies in former Soviet republics, Asia, South America aspire for US n European lifestyle which consumes high energy on a per capita basis? As energy consumption grows in the future, the future demand for crude oil n gas may even exceed the future supply.
2014-10-12 18:54
The unintended consequence of manipulating the crude oil price to punish Russia is that the profits of Major US Oil & Gas corporations will be negatively affected and if sustained over a long term basis, it will trigger mass layoffs in unprofitable fields. This manipulation of Crude oil price to punish Russia is untenable and may not be sustained as eventually economic discipline and market forces will take over.
The mid term USA elections is coming soon on November 4th, 2014 and it looks like Republicans candidates who are pro business have high chance of victory and will most likely secure the majority. If that happens President Obama will be a lame duck president for the remaining term in office and the manipulation of crude oil price may no longer be tenable.
2014-10-12 19:58
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agree with the most panlai investor haha
2014-10-11 14:05