Emotions Rule the Stock Market. Greed and Fear can also make the more sophisticated or experienced investors violate their own rules or principles. They no longer practice what they preach? So how can we expect their grads, the uneducated or ignorant retail investors, the uncles and aunties, to not lose money investing in stocks or other investment products? Aren't they are also human beings who somehow cannot control their emotions when dealing with money?
Yesterday, I read Prof Chan Yan Chong's article in the latest Shares Investment Guide, key points to note:
- Bargain hunters get hunted by the market beast in the recent stock market crash
- Fundamental analysis no longer works
- He is now holding on to stocks whose value kept falling ( he was one of those bargain hunters!)
- Now he rely on religious faith to keep himself balanced
- He consoled himself, being more fortunate than those who kena from Lehman Brother's min bonds.
Adam Khoo wrote in his blog telling people and his grads to buy and accumulate as stocks fall, profit from the market crash. Didn't he say buy only when the trend reverse in his seminar or course? He replied to say if he were to wait for trend reversal, the stock price might have already run up 20% or more! He said people who claim they can catch market bottoms are bulls***. Ha ha, I told him otherwise cos I got BMI.
Mr Joseph Cycle wrote in his website telling his students to buy when people are selling in the stock market crash and keep for 10 years. Hey, dun believe in his own cycle theory is it?
Now, are we seeing all the Greed and Fear of losing out if the stock market were to rally after the crash? Aren't they trying to catch market bottom themselves? But instead catching the falling knives?
Gabriel Gan (AmFraser) wrote this in Shares Investment Guide: "It is not yet time to enter the market in an aggressive manner and the preferred trading strategy would be to intraday or very short term trades. This is not an easy game to play unless you have the time and guts to ride the volatility.”
I totally agree with him. No buy and hold strategy going forward, ie long term investing. Even if the bear market rallies were to come, please dun buy and hold forever. Get out when the market turns, for the next 7 years, unless ??? How to?
Make emotions work for you, not against you!
Fengshui can forecast the emotional tides of the stock market.
I use Fengshui to make emotions work for me! When to get in and get out safely!
Fengshui, the Most Reliable Risk Management Tool I found!
Fengshui, the best Market Timing Tool I found!
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