Forum Archive Index - December 2000

["G Stolwyk" <stolwyk@wave.co.nz>]

 

Sorry "MASTERS" and others,

 

I automatically delete all unknown emailers from my inbox as I fear viruses!

 

This forum should be used instead, I think.

 

Regarding your questions, I, like others, do make mistakes; investment is not an exact science, as you know!    

 

How about the following:

 

Start losing some money first! Just lose enough to cause some pain. Please don't overdo  it!

This is a quick way of learning fast!!

 

Consider yourself of little importance: That helps you to forget your ego and it enables you to concentrate on the job in hand.

 

Listen to some speeches from Hitler and his henchmen.

This is a crude way of learning not to believe all the good people who want to take you to the cleaners.

 

Lose some more money! It certainly helps you to focus very quickly! Obviously, you should have enough left to carry on with!

 

Immediately after you have lost this money, go for a physical check-up. If your heart is in a very good condition, you could carry on!

 

Be critical of what you read; read the finantial pages. If you like a company, get their web site.

 

You will need to know how to read Balance Sheets, the relevant notes including those dealing with 'internal contracts': These are Directors' or management contracts. Unfortunately, they may not be available in some cases.

Some brokers offer courses at times; the various terms used in the trading of shares can be found on some web sites operated by stock exchanges or chat sites.

Brokers will supply you with a lot of information but you don't have to make a decision; sometimes it is out of date or unforeseen events have overtaken the advice: A week can be a lot of time!    

 

An understanding of the implication of Supply And Demand is necessary.

 

The ability to expose a selected item to possible influences from outside, is very important, I think.

An understanding of internal and external political and economic affairs will help. Example: The movement of interest rates and currencies can sometimes be of fundamental importance!

 

The ability to compare companies or alternative strategies, is important. You will need to read a lot but you can be selective! Reports can be obtained from the web sites.

 

You could combine 'Greed with Grace'.- a new expression-? This enables you to stand 'outside' the argument or investment, 

and coolly look at it before committing yourself. Many people are in too great a hurry to obtain a dollar in the short term.

 

Judgment could well be say 90 % of the equation.

Obiously, one can only make a judgement if one has a reasonable understanding of the parameters involved.

 

There is always another investment! If you miss an opportunity, don't fret for too long (bad for your health). We all miss opportunities!

 

Have a good sense of humour; you need it even more so if there is high risk is involved. Physical exercise also helps.

It can clear the mind!

 

Finally, lose some more money-at times we all do- it will certainly speed up your development. Once you can talk the commercial language and obtain results, other doors will be opened for you! 

 

These are my opinions, other contributors may have better or additional advice. 

 

I wish you luck,

 

Gerry