Demon or Angel?

Good intentions will be rewarded; bad ones will be punished. Chest la via!

I speak with a clear conscience. I have nothing to hide.

In Bentong, almost every family has a few acres of land to supplement his livelihood, and having two condos is no big deal either.

I treat all my readers as my friends. There is nothing wrong to let your friends know about yourself and your achievements. Only those who have dishonorable hidden agenda stay hidden.

Linking my name to the super rich is an honor. However, I really feel ashamed about it because I don’t even have 1% of what they have.

Telling your success stories to your friends is not boasting. Those who think it so have nothing to show.

Graduates have a convocation ceremony when they receive their degrees. Do you call that boasting? To me it’s is something to be proud of and a motivation to others.

In the recent downturn, if I say that I lost 1m, does that make you feel any better, demon or angel?

Upgrade yourself or downgrade your dreams. Don’t be jealous of others.

The Beginning of a New Era

This is to inform my readers that I have created a Google Group known as Blisswind at http://groups.google.com/group/blisswind. I hereby invite my readers and friends to join this group to make it successful. Please be notified that you need to have a Google Account to join as a member.

Our discussion can be better controlled and monitored at this site. Please feel free to participate.

Thanks.

Regards, Ben

Nextnation (Don't write it off as useless)

Nextnation’s latest quarterly earnings per share for the period ended 31.1.07 of 2.5c are a 47% improvement of its previous corresponding period of 1.7c. Its revenue has improved by 60% to 28.217m from 17.592m.

Going on these figures on a conservative estimate, its annual earnings per share will not be less than 8.8c.

The company has a clean balance sheet with no borrowings. Earnings are on an upward bias. At the present price of 58c per share, the PE works out to be 6.59. This is much lower when compared to other Mesdaq counters.

Chart-wise, the stock has been on a downtrend. I see support at 54c. This means the downside risk is low and there is good upside potential. The company is working on giving a bonus issue of 1 for 2.

As to why the stock has not performed so far, I think it’s because the directors are reluctant to let go off their shares or perhaps the big boys have not accumulated enough.

For those who are interested to know more about the company, click here.

The above commentary is my opinion only. You buy and sell at your own risk.

Our friends are our greatest assets

Our friends are our greatest assets. The more we have the better. One enemy is too many, a hundred friends too few. Only the mentally-disturbed have a yen to go against the community. Without the masochists and the sadists, our world will be a much happier place.

This blog is created for the purpose of sharing our knowledge, wisdom, useful information and experiences, etc. I have no desire to quarrel with anyone. I have no time for that. Those who find that this blog has no value and that Ben is talking too much and doing too little please don’t visit it. You have your own class and place to go.

I welcome creative or constructive criticism but not rude and vulgar remarks. Someone who called himself “wisdom” (the very thing he needs) came to my blog yesterday and made some unpleasant statements. He has really done great harm to the word, “wisdom”. He may not even know what it means. I am most thankful to those who have helped chased him out. This type of people will not be welcome wherever he goes but whenever he goes.

Unless he changes his attitude in life, he is bound to find all kinds of trouble, and some maybe too much for him to handle later in life.

In the stock market, winning and losing is part of the game. Only infants expect to win all the time. How many times you win is not important; it is how much. When you are right, make it big; when you are wrong, make it small.

Some cause happiness wherever they go; others whenever they go….Oscar Wilde

Interesting Quotes

Wait for the fat pitch. - Warren Buffett: comparing investing to a baseball game where you can wait endlessly for the perfect pitch before you swing.

Profits can be made safely only when the opportunity is available and not just because they happen to be desired or needed. ...Willingness and ability to hold funds uninvested while awaiting real opportunities is a key to success in the battle for investment survival.- Gerald Loeb

You make money on wall street by being very selective and being patient, waiting for those opportunities that are irresistible, where the percentages are very heavily in your favor.- Seth Glickenhaus

The only way you get a real education in the market is to invest cash, track your trade, and study your mistakes! - Jesse Livermore

There are styles in securities as there are in clothes. A security may be undervalued, but if it is also out of style it is of little interest to the speculator. He is, therefore, compelled to study the psychology of the stock market as well as the elements of real value. - Phil Carret

Learn every day, but especially from the experiences of others. It's cheaper! - John Bogle

You make money buying stocks on weakness and stocks in distress. You don’t make money buying stocks when they are in high demand. – Seth Glickenhaus

It is not whether you are right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.- Stanley Druckenmiller

Surviving the odds

Conflicting and competing forces converge for supremacy in the stock market.
In a mortal combat for survival of the fittest, unless you are well-prepared, well-trained, and well-armed, you are lucky to come out alive, unscathed and unhurt, let alone a profit.

Without knowledge and a sound philosophy of the market, you will be at the whim and fancy of the manipulators, riggers, tricksters or professional traders.

Constantly at the mercy of every panic, boom or bust, rumors, tips, hope, greed and fear, in fact of every wind that blows, the retailers lie awake every night pondering, weighing and questioning as to the very action they should take the next trading day.

These small timers have no guide as to when to take profits or cut their losses. They just act on premonition or their instinctual feel. The result is that they sell prematurely in a good and profitable situation or overstay and lose back all or most of the gains or let their losses run too far into the red lights. The inability to take a small loss is a big blunder few can overcome.

Charts discount all known information which includes earnings, dividends, bonus issue, mergers or acquisition, whether declared or intended. If you disagree, you need to study further or else don’t use charts at all.

Charts, however, cannot forecast unforeseeable events or natural disasters that are unknown to anybody. for example: landslide, typhoon, hurricane, tsunami and to a certain extent war.

Follow chart rules to the letter or rules of your own as your experience dictates.

With a well-thought-out plan and a good strategy, you will be able avoid a big loss and maximize your gains. You will know how to free yourself of irrational and excessive emotional actions.

The market pays well to anyone who approaches it intelligently.

My A – Z to Successful Investing

A for Approach
Commence with the right approach, and you can’t be wrong. Never approach a horse from the back; a golfer from the side, or a fool in any direction.

B for Bulls and Bears
These are the creatures we really need. Without them the cats and the dogs (rubbish shares) will be as quiet as the mouse.

C for Charts
Charts are designed to track smart money. If you don’t like them, you don’t belong to Wall Street.

D for a) Discipline, b) Discretion
a) You need discipline to implement your plan.
b) Discretion is the better part of valor. (Better to think carefully; don’t do anything that may cause problems later)

E for a) Entry/Exit, b) Emotion
a) The entry is as important as the exit. Both must be right to yield maximum profits.
b) Don’t be emotional with stocks. Sell everything when they are greatly overvalued.

F for Fundamental
Fundamental analysis is a must. Know what you buy and buy what you know.

G for Go
Go the extra mile. Be prepared to work harder than others.

H for Haste
More haste less speed; haste makes waste. So, plan you trade carefully.

I for Intelligent
Intelligent investing is value investing. Follow Benjamin Graham.

J for Jump
Jump the gun, you must not.

K for Knowledge
Knowledge is power. Know your onions.

L for Leaders
Go for the leaders rather than the laggards. Look for the genuine leader in its particular field.

M for Money
Money makes money, and the money money makes, makes more money. Maximize your gains and minimize your losses.

N for News
News, good or bad affects the market. Know what is happening locally and globally.

O for a) Online, b) Opportunity, c) Odds
a) Go for online trade. You save a lot on commission.
b) Opportunity neglected, seldom returns; don’t miss it when it is there.
c) Professionals look for the most odds. Follow them.

P for a) Profits, b) Patience
a) Profits are the life blood of a company. A company without profit is somebody’s problem.
b) Good things go to those who wait. Be patient.

Q for Quality
Buy only quality companies with quality management.

R for Remember
Remember, remember. Don’t make the same mistakes again and again.

S for a) Safety, b) Strategy
a) Safety of principal is your first priority.
b) A good strategy is one that can attack and defend as well.

T for a) Timing, b) Trend
a) When to buy is as important as what to buy. Timing is crucial.
b) Price moves in trends. A trend in motion is likely to continue. Follow it to the end.

U for Useful
Whatever tools you find useful, use them to your benefits.

V for Value
Value for money you must insist.

W for Wisdom
Wisdom is the right use of knowledge. You cannot succeed without it.

X for X-Dates
Check the x-dates of entitlements before you buy.

Y for Yield
Good dividend-yield is important.

Z for Zest
Be zestful. Life without zest is meaningless. Enjoy!

Bentong

Genting is known to all and sundry. Many have not heard of Bentong, Actually, Genting is partially in the district of Bentong.

From the foot of Genting to Bentong City (upgraded recently) it takes you about half an hour’s drive by car. Food, land or houses are much cheaper here when compared to those in KL or the Kang Valley. At Tai Tong Restaurant KL, a dinner for 10 costing RM900 can be gotten here for half its price. The quality is more or less the same.

During weekends, many people from KL come to Bentong for their shopping in the wet markets. Presently we do not have any supper markets here yet. I understand that Parkson and Jusco shall be coming soon.

One notable tourist destination in Bentong is the Chamang Water Fall. At one time, as many as seven buses fully loaded of people from other towns or cities used to visit the place during weekends. The government is upgrading and beautifying the place and work is on-going

Durian small holdings are predominant in Bentong. We have some of the best clones here. D24, D78, D88, D2, D96 and Raja Kunnit (The King of Musang) are some of the popular varieties.

My house is in an orchard having an area of 4.5 acres I can see Genting very clearly in a clear night or day. With the help of a telescope, I can even see the windows of the hotels and their colors.

Climatic condition here is much better when compared to KL. The air is cooler and fresher and has more oxygen.

I maybe shifting to Puchong some time next year. I have bought 2 units of condo at Aseana Puteri. The project is under the IOI group. The place sits on a hill and is very lovely.The air is refreshing as well. If any of you wishes to buy a condo, here is one place you should consider. Who knows, we may become neighbors. And if you need an introducer to save RM1000, I can do it for you.

Cheers and all the best.

Know the odds before you bet

The excitement of gambling is irresistible to many. It’s alright to be a social gambler when you play in small stakes to pass time. But a compulsive gambler is a cripple for life.

He finds it hard to stop while down and harder still when he’s ahead. He becomes addicted to the pleasurable-painful tension of winning and losing. He has to feel the glory of success and the agony of failure. Unconsciously, winning or losing doesn’t matter much to him so long as he can keep on gambling. Eventually he loses everything, and ruins his life and home.

Gambling is a zero-sum game. One party must lose before the other party wins. There are two sides to a bet. They are the wining side and the losing side. If you can’t be on the winning side, don’t bet. Rarely put on a 50 to 50 chance bet.

In casino games, the banker is always on the winning side. When you play roulette, whether you bet on red or black, you chance of winning is 18 against 19. That little odd of 1 in favor of the banker is enough to enable the banker to win over time.

No matter what other games you play in the casino, the odds are always in favor of the banker. That’s why the house always wins.

You must know the odds before you bet. In the 4-digit numbers game, the odds are heavily against you. That’s why the illegal operator makes so much money at the expense of the naïve punters. Don’t be taken advantage of; don’t contribute to others’ holiday funds.

Gambling is often associated with crime. In the underground world of gambling, we have the professional gamblers, the cardsharpers, the confidence men, the cheats, the shills and the hustlers all ever ready to strip you of your hard-earned cash.

Think twice, and think again before you put in your next bet. If the odds are greatly against you, you have no chance to win.

Be on the winning side to win.

http://fusiontrader.blogspot.com/

This is to inform all my readers/bloggers that whenever my shout box is limit up, we can go to Max's blog to continue our chit-chat. Just click here.

Thanks.

Redtone – more distribution envisaged

Redtone closed with a black engulfing candle last Friday. It opened at 83c and closed at 78.5c with the intra high at 90c. The closing price is lower than the opening price, hence the black candle.

Volume was exceptionally high at 410,003. This kind of volume has not been seen for a long time at Redtone. The candle clearly shows that distribution is going on. For those who are contemplating to buy Redtone, now is definitely not the time. Wait for the distribution to complete first before you make any decision.

If I am long on this counter, I will immediately make my exit, come Monday morning.

Support for the stock is at 63c while strong resistance is at 91c.

The above commentary is my opinion accordingly to my reading of the chart of Redstone.
If you listen to me, you do so at your own risk. The writer disclaims all liability for your perusal of this blog.

Don’t chase momentum if you can’t find the exit. Assume the market will reverse the minute you get in. If it’s a long way to the door, you are in trouble.

The Wash or the Shake-Out

A rose by any other name is just as sweet.
A crow by any other name is just as black.

A rich professional investor who has taken a liking to a stock finds that the price has gotten too far. He wishes to take a sizable stake of it but does not wish to buy high and sell higher. To him that would be too costly and too risky.

He waits for a correction or consolidation phrase. He knows where you put your stop-loss. A few well-placed sell-orders below the support line will do the trick.

As soon as your stop-loss is triggered, there will be a stampede for the exit door.

Longs on margins and on T+3 become scared. They run helter-skelter and dispose of their shares in earnest. Those on charts, who are not so smart, add fuel to the fire.

The professional calmly scoops up his intended buy at undervalued prices. After the episode, things soon calm down. The stock reverts to its uptrend with you being deprived of your stocks, and cursing your bad luck when you are actually being played out.

Don’t be fooled by such manipulation. Know the intention behind the action. Know the intrinsic value of your shares. You will have a better chance to live and fight for another day.

Price has memory. What happened the last time, it hit a certain level? Chances are that it will do it again. If you don’t study history, you are doomed to repeat it.

Modify your dreams or magnify skill

You must either modify your dreams or magnify your skill …..Jim Rohn

Overestimation of one’s ability is a sign of weakness. Setting overambitious targets and failing to deliver breeds demoralization and sabotages the desire to upgrade yourself. Overconfidence includes excessive pride and boasting, refusal to listen to constructive criticism and not taking remedial measures in advance. It is better to know your own limitations.

To succeed in the stock market you must know what to do, how to do, and possess the skill and temperament to actually do it.

Set goals you know you can reach. Perseverance and enthusiasm are the keys to success.

Thomas Edison, when asked how he felt to have failed 2000 times before he succeeded in the invention of the light bulb said, “I never failed once; it just happened to be a 2000-step process and I have found 2000 ways that didn’t work."

A boy frustrated with all the rules he had to follow asked his father, “Dad, how soon will I be old enough to do as I please?” The father answered immediately, “I don’t know.
Nobody has lived that long yet.”

Choose your own style

When identify a good company to invest, the first thing I look at is its core business. If I don’t like it, I will just ignore it and forget about it. The second thing is earnings per share without the exceptional gains. Third is the caliber of the management. In this respect and when in doubt, I will look at its track record. Only when I am satisfied that its prospective earnings and earnings growth are good will I delve further into it.

Dividend yields are important. When I invest, I will be looking for dividend yields of at least 50% more than what the banks pay in interest.

The only benefits a minority shareholder has in a company are capital appreciation and dividend payments. Therefore, you must pay attention to these.

Every stock has an intrinsic value. Benjamin Graham known as the “Father of Value Investing “ and the “Dean of Wall Street” advocates that we buy at 2/3 of the intrinsic value of a share. If you want the safest of all bets, you must have the patience to wait for the opportunity. You must also know it when it is there.

Buy a stock when its price is below its intrinsic value; sell it when it is way above it. It’s as simple as that. Don’t get married to your stocks. Enjoy the romancing and then say, “Bye-bye!” Never get emotional with stocks.

“Trading is the most exciting thing you can do have with your clothes on,” says a professional trader and technical analyst .Excitement is exciting; everybody wants it. How wonderful to be there, yelling, shouting and laughing and at the same see your wealth climbing. If you have mastered the mastery of trading, that is what you will be enjoying. If not, you will find that trading is not so exciting after all.

Money is what I am after when I invest in the stock market. After I have made my dough, I can go for my excitement.

I am not afraid of tomorrow, for I have seen yesterday and I love today....William Allen White

Have Intelligent Investment Strategy

For those who have missed out my winning essay and wish to read it, Please click here.

Down Memory Lane

When I was young I was a keen sportsman. I have represented my schools and my district in sports. In 1957, Malaysia held its first Merdeka spot. I represented my school in the 100 yards flat race Bentong Open. To win you must have speed, a good start and a good finish. Competing with the best in the district, I came out first. Thus I was the fastest man in Bentong then. I was given 5 dollars in cash for the price, or was it 3? I can’t remember clearly.

To me, variety is the spice of live. I like singing, and ballroom dancing; the cha cha, rumba and the waltz are my favorites. In games, I play table-tennis, badminton, golf and billiards.

Nowadays, I play Tai Chi and billiards only. As a way to keep fit, I also do some jogging and a little bit of gardening.

My greatest disappointment in life so far is going into business. I formed a legal money lending company which folded because of bad loans. I should have listened to Shakespeare who said, “Neither a lender nor a borrower be; for a loan soon looses itself and friends.”

My first two years in the stock market were profitable. Then came a bear market .I lost some money. I didn’t know that I didn’t know. Then I began to know what I didn’t know. I started to learn. After a few years of studying, observing and learning, I got the correct approach and the correct touch. From then I have never looked back.

Call it luck if you wish. Luck, of course is important. The harder and smarter you work the more you will have.

“God favors the prepared mind” is one of my favorite sayings.

If I feel............

If I feel depressed I will sing.

If I feel sad I will laugh.

If I feel ill I will double my labor.

If I feel fear I will plunge ahead.

If I feel inferior I will wear new garments.

If I feel uncertain I will raise my voice.

If I feel poverty I will think of wealth to come.

If I feel incompetent I will think of past success.

If I feel insignificant I will remember my goals.

Today I will be the master of my emotions...Og Mandino ( The Greatest Secret In The World)

A Windfall to Remember

Back in 2003, I was looking for hidden gems to invest. I came across Federal Flour Mill (FFM) and found that it had all the essentials I wanted. Capable and reliable management, Strong balance sheet, high earnings per share, visible earnings, good track record, etc.

What I really liked was that the company was a subsidiary of Perlis Plantation (PPB) whose boss isTan Sri Robert Kuok, the riches man in Malaysia. The stock was then ill-liquid, unloved and unpopular. But for me, it was a lovable beauty; I immediately realized that it was to be my next winner. I started to buy the stock. After a few months of accumulation, I had bought up to 98,000 shares at average price of RM5.35 per share.

To my delight, the stock started to trend up steadily soon after. By March 2004, the stock hit Rm9+ per share after the announcement that PPB wished to privatize the company. It offered RM2 cash & 1 PPB share for every share of FFM. At RM9+ I took partial profit. PPB was then selling at RM7+ per share.

The rest were then taken over by PPB in exchanged for what they offered. Upon completion of the privatization, PPB was selling at RM7+. I started selling my PPB shares and completed my sale by May 2005. PPB later gave a bonus issue of 1 for 1. As at last Friday PPB closed at 5.85

From my initial outlay of RM500,000 plus, I made more than 100% of this amount even without including the dividends received. From the start to the finish, it took me less than two years. Not a mean feat by any standard, I supposed.

As for my losers, they do not merit mentioning because they were rather small.

I believe I have found my next winner. You need to do your own research to find yours.

Cheers! And all the best.

Nothing of value is ever achieved without enthusiasm.

You’ve got to beat the fund managers

We can’t compete with the fund mangers. They have millions and millions to invest.

Fund managers are not interested in ill-liquid, unloved and unpopular stocks even though these stocks are greatly undervalued. It is here that we must find the hidden gems.

Intelligent investing is value investing. Buying great stocks at bargain prices is the best way to get rich. Here are some of the things you must look at when you are looking for great stocks:

1. Caliber of Management

Success or failure depends very much on the management. Look not only for capability alone. Capability without reliability, honesty and moral values are worst that incompetence but with sincerity and a heart for the minority.

2. Earnings and Cash Flow

Earnings are the live blood of the company; cash flow is the real wealth. Look at earnings per share without the extraordinary one-time gain to be meaningful.

3. Prospective earnings

While current earnings are important, prospective earnings are even more so.

People always look forward and think about the future. There is no need to look too far. The next one to two years are what really matter.

4. Services and Products

These must be in demand. They must be able to compete locally and globally.

5. Brand name & useful patents

These are important assets of the company.

6. High–entry barrier

A company with a high-entry barrier is an advantage. Banks, casinos and telecoms are some of the examples.

7. Gearing

It is risky to borrow too much. In bad times, companies with high gearing can be in trouble. A company that does not have to borrow is better than one that has to borrow to generate profits, other things being equal.

8. Dividend Policy

A good dividend policy is important to the minority shareholders.

A value investor waits for the market to realize the value of his stocks.

Don’t change your system, if it works for you

White cat or black cat, if it can catch mice, it’s a good cat (former Chinese premier Deng Siau Peng)

So long as your strategy or method works for you and yields you the desired result, you should not change it. Whatever we do we have a reason. More so when it comes to buying or selling in the stock market. If you really want to improve you trading system or investment strategy, you should write down the reason as to why you buy or sell. This will tell you what works and what doesn’t. Over time you will have a great strategy.

We learn from our mistakes; we also learn from our successes. Investing is very simple. All you need is to buy great stocks at bargain prices and sit on them. You don’t need to be an accountant, but you need to know how to read the annual report.

Trading is very much more difficult. You have to keep track of price-changes every minute of the day, make split-second decisions and have steel-like discipline. Also you must be able to bear pain. Once you have learned to cut small losses without feeling pain, you have moved up one grade. The excitement is there but few have mastered the skill to enjoy it.

Easy money is not easily made.

What is seasonal/cyclical stocks?

Seasonal stocks & cyclical stocks. To know more

Watch out at 1,222

The stock market is not a casino unless you want to treat it as one. When you bet in a horse race, that’s gambling; when you bet that palm oil will go up 50 dollars, that’s speculation, and when you bet you can make 3 spades, that’s entertainment.

The KLCI is now at 1171.54 (+14.96). The worst appears to be over, and everyone is smiling again. Chart-wise, it’s my opinion that as the market approaches 1,222; this uptrend may turn out to be a bear trap. Watch out!

This is my opinion only. You are entitled to yours. Buy and sell at your own risk.

Disconnecting The Connect

Dearest friends,

I am posting on behalf of Ben.

Ben's Streamyx is having some major problem. It seems like TMNet is "upgrading" (read: troubleshooting some problem) their Streamyx's infrastructure that is affecting some major part of the Pahang state.

TMNet said that they also have no idea when they are going to be done with the work.

Have fun and "May the Bull be with you".

cheers,
~Ben's IT Support

Trader's Blues

Here's an interesting poem, full of wit and wisdom; good to read & good to know. It is called:

Trader's Blues

There's trouble on the street today
I can feel it in my bones
I had a premonition that he should not go in alone
I knew his charts were loaded, and he was ready for the kill
Until the stock imploded and the blood began to spill.

So baby, here's your ticket...lick your wounds and slap your hand
Here's a little money now, do it just like we planned
If you're cool for 20 hours, it might pay you 20 grand!

I'm sorry it went down like this, and someone had to lose
It's the nature of the business.
It's the Trader's Blues.

The hedgies and the gurus, market makers and the law,
The pay-offs and the rip-offs, and the things nobody saw
No matter if it's futures, or the stocks that go mo-mo
You've got to get those loaded charts 'cause it's all about the dough.

There's tons of shady characters, lots of dirty deals
Every name's an alias in case somebody squeals
It's the lure of easy money, got a very strong appeal
Perhaps you'll understand it better standin' in his shoes

It's the ultimate enticement
It's the Trader's Blues

You see it in the headline, you hear it every day
They say they're gonna stop it, but it doesn't do away
They move it through an ECN or flip it on the NAS
They hide it up in ARCA, and I mean it's here to stay!

It's propping up the governments and big fat global stew
You ask any SEC man, he'll say "Nothin' we can do."

From the verbose newsletter writer back down to me and you
It's a losing proposition but one you can't refuse.

It's the politics of fear and greed
It's the Trader's Blues... Janice Dorn, M.D., Ph.D. (with apologies and gratitude to Glenn Fry and "Smuggler's Blues")

The DJI has the potential to drop another 440 points within the next few days. It may even happen tonight. Should that be a reality, the KLCI will definitely be dragged to its next support at 1,051 or lower.

To day it closed at 1,110.69 down 53.99 points. Volume at 2.6171 billion shares is moderately high. The whole world’s stock markets are tumbling down. KLCI got the record at 4.64%. Could smart money be at work? Who doesn’t want to buy low?

Most of the stocks are back to square one. Many are on the way. Should there be another big drop of 50 points, I think it’s a good time for some bargain hunting.

The market always turns around when people are most pessimistic.

Cheers! It’s not doomsday.

Your worst enemy is yourself (Chinese proverb)

You will not succeed in the stock market if you failed to control yourself. How many times have you told yourself to go to the gym the next morning at 7, but changes your mind at 6.45. How many times have you tried to control your diet, but eat like a glutton when you are at the dinning table? How many times have you tried to stop drinking alcohol and stop smoking but failed. Discipline, do you have it?

You may surround yourself with the best books, learned all about the stock market technique or strategies, subscribe to the most expensive newsletters; buy a 5000-dollar winning system, and yet find yourself none the better for them; simply because you have failed to discipline your mind and thus your action.

Discipline, patience and wisdom are traits you must instill in yourself before you can succeed. Of course you must have knowledge as well.

I have not the slightest doubt that I will continue to make money in the stock market; bulls or bears, I will continue to work with them and not against them. I have learned to control myself. I have succeeded and I will continue to succeed, god willing.

You too can succeed. Good Luck.

If you cannot do great things, do small things great……Napoleon Hill

Buy at upside breakout at low level

Initially when you buy, you are full of hope. Counting your chickens before they are hatched, so to say. Just as soon as you buy, the price drops, you buy more to average down. It moves down again and you buy some more. Then it moves up a little and you feel elated. “See, I am smart.” You say to yourself.

Suddenly, it moves down again. From some visible soil erosion, it develops into a landslide. You become demoralized. Frustration sets in. Your ego & pride are hurt.

Your hope of making a profit vanished into thin air. It is downgraded to breaking even and then to keeping losses small. By now, the top is formed.

You hold on to your stock hoping and hoping while the stock keeps going down and down. From the initial feeling of love, this feeling has turned to hate. The longer this feeling goes on, the more frustrated you become.

Many months or years later, the stock moves up a little and then a little bit more, you feel happy about it. Just when there is a little bit of hope, the stock drops. It goes sideway. Ding dong ding dong, its goes. Frustration and anger set in.

If it goes up a little bit more, I shall sell everything, you thought to yourself. All of a sudden, volume increases and the price picks up. You see a chance to lose a little bit less; you start selling your stock. The stock moves up and you sell everything. Immediately after that, the stock goes into an uptrend; up and up and away!

“I sold out just before the big move-up.” How many times have you heard this? Can you profit from this stupidity? Give it some thoughts; and you should be able to figure out the answer. If you can’t, look at the heading.

If you have to look, it isn’t there.

Everyone is looking for the perfect system. How can we have a perfect system when we are living in an imperfect world? No point looking for the Holy Grail; it just isn’t there.

Stock market wisdom is the key to success. Don’t confuse wisdom with knowledge. Of what use is the computer without the software? You need wisdom to implement your knowledge correctly.

How much you put on a trade will affect the outcome. If you overtrade, you become overly concerned when there is slight drop. This may lead you to all kinds of wrong decisions. We want to be comfortable to win. Never play with borrowed money as this will make you feel very uncomfortable.

Investing is the secondary school; trading is the university. The problem is that people want to go into the university without completing their secondary schooling.

When you sit down for a game of poker, you must know who is going to be the contributor to the others’ holiday funds. If you don’t, that person is you.

Self discipline begins with the mastery of your thoughts. If you don’t control what you think, you can’t control what you do. Simply, self-discipline enables you to think first & act afterward........Napoleon Hill.

You can go broke within a year if you listen to tips

With enough information and one million dollars you can go broke within a year, says Warren Buffett.

The other day, not so long ago, I was unloading a particular stock, when my remiser called. He said, “Uncle, I heard that XXX (the stock I was selling) will be played up in the next few days.” I said, “Never mind, I shall complete my sale.” It was very easy to sell then because the demand for the stock was great and turnover was exceptionally high.

The following day, the stock dropped 30% lower. Later, I found out that one of the directors of the company had on that particular day sold some 10 million shares. There you are; if I had listened to the tip, I would be trapped.

Beginners’ first touch with the market is usually lovely. They begin to think that those who work for a living are silly. Later on, they find that the market is not that lovely; they begin to hate it; fear it and then to respect it. For those who eventually love it again, they are the ones who have succeeded.

If you are about to speculate in stocks and shares, it behooves you to ask yourself if you have the fast-reasoning power, knowledge and wisdom to compete with the ablest brains in the world who are working full time. If you don’t, better be an investor.

You can’t beat the bear.

Two men were together in the woods when they saw a bear in a distance. One of them quickly put on his running shoes when the other remarked, “You can’t beat the bear.”

“I know,” the man retorted, “All I need is to beat you.”