Never would I have expected this beaten down stock to almost double on me, but...that's why it is important to do your homework!
Happy Anniversary MooMoo!
Being in your ecosystem this year has added a new dimension to my investing experience!
The social element and hearing from other opinions has brought me new insights and deeper thinking into $Tesla(TSLA.US$ and $Alibaba(BABA.US$, at the root of it, I know that I look for strong stable businesses...yet learning about other ones has enlarged my view of the market as a whole!
Thank you and congratulations once again!
Being in your ecosystem this year has added a new dimension to my investing experience!
The social element and hearing from other opinions has brought me new insights and deeper thinking into $Tesla(TSLA.US$ and $Alibaba(BABA.US$, at the root of it, I know that I look for strong stable businesses...yet learning about other ones has enlarged my view of the market as a whole!
Thank you and congratulations once again!
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1
Do you have the patience to watch paint dry? The best businesses are not the ones making huge jumps and then being dead for a long time...the great businesses do unappreciated, yet crucial work on a daily basis!
So...if you find a business with great cash flows, little or no debt and a good moat, all you have to do is buy in at a good price and hold it! Look at $3M(MMM.US$ or $Costco(COST.US$ so unassuming, yet the products that they make or service they provide are extremely invaluable! I love "old school" businesses for their steady, predictable cashflows!
So...if you find a business with great cash flows, little or no debt and a good moat, all you have to do is buy in at a good price and hold it! Look at $3M(MMM.US$ or $Costco(COST.US$ so unassuming, yet the products that they make or service they provide are extremely invaluable! I love "old school" businesses for their steady, predictable cashflows!
4
Some principles I am learning...
1) Watch the volume traded, and the size of the trades, these give an indication of where the money is flowing and can help you to identify the momentum...of the false signals
2) Don't get sucked in by false signals, follow proper trading principles...establish your stop-loss positions first and size your trades properly... don't jump in and get sucked up by the momentum going down
3) if day trading, use the hourly and 15min charts properly...
4) for slightly longer, candlesticks and moving averages are your friends...establish the direction and the momentum, before you put in any trades...
Short term trading has to be disciplined if you want to make money
1) Watch the volume traded, and the size of the trades, these give an indication of where the money is flowing and can help you to identify the momentum...of the false signals
2) Don't get sucked in by false signals, follow proper trading principles...establish your stop-loss positions first and size your trades properly... don't jump in and get sucked up by the momentum going down
3) if day trading, use the hourly and 15min charts properly...
4) for slightly longer, candlesticks and moving averages are your friends...establish the direction and the momentum, before you put in any trades...
Short term trading has to be disciplined if you want to make money
Ray Dalio stated he cannot stay out of any large economy, and on a valuation basis, the US is highly overvalued while Chinese stocks are beaten down
It makes no sense to me if someone fears China because they are centrally controlled, which country wants to sabotage their own economy?
My simple thesis is good companies can weather any storms, political, economic or otherwise...hence I am accumulating good, strong companies from China which are market leading...I see alot of fear from the US, but I genuinely smell more opportunities in China and Asia! Cash flow is still strong and the pandemic is better managed in these regions
It makes no sense to me if someone fears China because they are centrally controlled, which country wants to sabotage their own economy?
My simple thesis is good companies can weather any storms, political, economic or otherwise...hence I am accumulating good, strong companies from China which are market leading...I see alot of fear from the US, but I genuinely smell more opportunities in China and Asia! Cash flow is still strong and the pandemic is better managed in these regions
2
My most important habit is to slow myself down and ask relevant questions of a stock I am going to buy...for example...
Asking myself:
1) Am I happy with the value of this business?
2) Will I be ok if the price falls 50%?
3) Is this a long term value play? or a gamble?
+ other questions...
Asking myself:
1) Am I happy with the value of this business?
2) Will I be ok if the price falls 50%?
3) Is this a long term value play? or a gamble?
+ other questions...
When Elon did his $Tesla(TSLA.US$ poll and then sold off...do people realise what a raw deal they got?
He exercised his options at less than USD7, got 2 million shares and then sold just half. This is less than 1% of his stock. Looks like 9% more to go.
While everyone focuses on the USD1000 profit per share he got, do people realise that Elon just pulled a fast one by diluting EVERY single shareholder? He holds one million more of the free float now...he just diluted every one of his shareholders. And he is going to do this with the rest of his stocks
Executive options expire next year so expect more of these shenanigans not just from Elon but from his top execs...share dilution is the hidden killer as it steals from every shareholder...I have never liked it, and when Elon does it like this, he feels more like a snake oil salesman than a respectable CEO
He exercised his options at less than USD7, got 2 million shares and then sold just half. This is less than 1% of his stock. Looks like 9% more to go.
While everyone focuses on the USD1000 profit per share he got, do people realise that Elon just pulled a fast one by diluting EVERY single shareholder? He holds one million more of the free float now...he just diluted every one of his shareholders. And he is going to do this with the rest of his stocks
Executive options expire next year so expect more of these shenanigans not just from Elon but from his top execs...share dilution is the hidden killer as it steals from every shareholder...I have never liked it, and when Elon does it like this, he feels more like a snake oil salesman than a respectable CEO
3
2
A mentor once reminded me after an investment loss...the market is like getting a green light because over time, the market goes up because businesses grow, so just like driving...we can simply coast along, enjoying the view
Occasionally, we get the amber/yellow caution light where we have to be cautious...
But the most important function of the stoplight is the RED light, as it literally saves lives but making us stop before we venture into dangerous territory.
It was a great story that I have remembered til now. I put in a stop-loss into every trade, based on my valuation or technical chart calculations BEFORE I execute a trade.
Setting a stop-loss allows me to minimize losses and redeploy money out of losers and into winners
But just like in
Occasionally, we get the amber/yellow caution light where we have to be cautious...
But the most important function of the stoplight is the RED light, as it literally saves lives but making us stop before we venture into dangerous territory.
It was a great story that I have remembered til now. I put in a stop-loss into every trade, based on my valuation or technical chart calculations BEFORE I execute a trade.
Setting a stop-loss allows me to minimize losses and redeploy money out of losers and into winners
But just like in
I have lost money due to tips from friends, and due to "fantastic news!" from insiders or someone who knows someone!
Yet, on the other hand, I also have investments that I have held for over 15 years...which have paid dividends and multiplied several times the invested value already
I see the short term mistakes as the price to pay for not being disciplined and doing my homework. But the good thing is that those mistakes are small and they have taught me lessons on how to do proper valuations and to understand the fundamentals of a business.
Learning how to value a business is much more useful in investing than following stock picks, at the end of the day, we are buying a business NOT a ticker price.
Painful lessons are useless if we ignore the pain, but extremely valuable when we learn from it
Yet, on the other hand, I also have investments that I have held for over 15 years...which have paid dividends and multiplied several times the invested value already
I see the short term mistakes as the price to pay for not being disciplined and doing my homework. But the good thing is that those mistakes are small and they have taught me lessons on how to do proper valuations and to understand the fundamentals of a business.
Learning how to value a business is much more useful in investing than following stock picks, at the end of the day, we are buying a business NOT a ticker price.
Painful lessons are useless if we ignore the pain, but extremely valuable when we learn from it
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