Poor Man's asset is time and law of average. I cannot guarantee that a stock will move, but Pareto's law say that 20% will be home-run, 60% average and 20% total loss.
Big shot is small shot that keep on shooting.
Calling all the small shot lets shoots together to be big shot.
Say you start investing with only 10k. 2k in each 5 counter. 1 year later, 1 counter become 5 bagger, 3 counter 2 bagger, 1 counter total wipe off. End of the year. Your 10k become 22k. Not bad, you make 120%.
I dream of catching dragons... aiyoyo...I ended up mostly with snakes... I don't go to holland... aiyoyo... I go direct to polarland bypassing holland aiyoyo.
aiyoyo these 2 snakes that I caught, talam and tanco landed me in icu for many moons and finally had to chop off my hands aiyoyo... 50% loss after seeing many moons rising.
anyway...that was history.
another day and another chapter, the story continues ... catching the elusive dragon, and once a dragon has been caught, more will be caught kikikik
talam @ 14 sen on uplifting of pn17 and even after pn17 released, it continued to drop and cut @ 7 sen after nearly a year while tanco @ 35 sen continued to drop and after more than half a year, cut @ below 20 sen.
I was badly affected because of my greed and ignorant. Greed in the past make me buy 220,000 shares of apli at 22 sen (still studying then), then supermax drop to 70 sen,,i decided not to buy (ignorant). APLI go to nil. Supermax go to rm 8. I should have profited with SARS and gloves but lost. So, i make decision, past is past. A share will be bought if there is enough margin of safety.
Nothing is impossible in the stock market. If i am sure of when, where and how a stock move, i will be the next buffet then. I just let law of average work. I have a fondness for olympia no doubt.
However, you must remember, our projection is affected by 1) act of god 2) big boys and 3) crowd psychology. Thats why cannot play only few counter. I swing a lot of counter at one time.
problem is i like to swing whenever i see profit, i bought pdz at 8-9sen; will i sell at 14? Sure. If only, i wait. I must learn the word patient i confess.
I don't have crystal ball, but if you want to play those penny penny counter make sure you diversify as many as possible, not buy truckload for homerun,,,,
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by dragonking > 2014-05-10 14:02 | Report Abuse
Poor Man's asset is time and law of average. I cannot guarantee that a stock will move, but Pareto's law say that 20% will be home-run, 60% average and 20% total loss. Big shot is small shot that keep on shooting. Calling all the small shot lets shoots together to be big shot.