Forum Archive Index - February 2002

["Richard Hooper" <hoop@ihug.co.nz>]

Thxs Hugh for the vote of support.
Acually I have been in this trade for many years and I am still here
(survivor..I hope :))  ) ...but I have sometimes forgotten Lesson 1. not
sometimes but often....then when the investment goes wrong I say "shit" , no
thats a lie... I say ....<<<censored>>>..The reason why I fail is, I do my
homework then think of all the sceneros  that may happen...ok to this
point..Then I overcomplicate things(human failing ),then I think well this
stock can wait a week or two because it is out of favour ,so I will go for
this highly publicised stock ,make a quick buck and get out to buy the
original stock that I should have bought in the first place.I bail out at
the 10% stop loss,no better off .
The stock that I had been watching goes up in price in the meantime and I
say that I will buy when it comes down in price ...only to see that it keeps
on rising. So buy something else.
What went wrong here....2 things,
1......Lack of discipline
2......emotion
Question... Do I work with TA
Answer ..Yes
Question ...only TA
Answer...Does a carpenter only work with a hammer.

Hoop




----- Original Message -----
From: "hugh webber" <hugh.webber@clear.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Friday, February 22, 2002 9:57 PM
Subject: Re: [sharechat] why is the price falling


> Good stuff Hoops, I'm with you.
>
> ----------
> From: Richard Hooper <hoop@ihug.co.nz>
> To: sharechat@sharechat.co.nz
> Subject: Re: [sharechat] why is the price falling
> Date: Friday, 22 February 2002 20:51
>
>   Why is the market falling???
>   Probably due to many factors, which unless you understand how they all
work and intereact with
> each other,you should start at the beginning first rather than entering
this area in the middle
> with this question why is the market falling....
>
> Lesson 1:
> ...James... When learning the stockmarket, keep it simple & be
emotionless. You will have to
> broaden your mind & throw away any biases you have in life.
>
> 1...It is a market, therefore price is dictated buy supply & demand.
> 2....Humans belong to the animal species, hence they rely heavy on animal
instincts.
> 3....Herd behaviour is very common...
> 4....Sometimes there is not logic..Due to herd behaviour a great stock may
get oversold for no
> reason, a poor stock may be rocketing up in price for no reason
...stampedes could happen even for
> no reason, and stocks ignored for no reason.
> 5...Having a Business Degree gives you no guarantees to make money on the
market because of social
> influences.
> 6...Having a psychology degree gives you no guarantee to make money either
because of the business
> factor
> 7...Having both degrees is a recipe for disaster as one would think too
hard and screw things up
> totally.
> 8...Advice.......Don't buy a crystal ball
>                         Don't look in the rear vision mirror while
travelling forwards ( history
> may not repeat itself)
>                         Don't act on what you read in the newspapers (too
late)
>                         If people are taking about a stock it's(too late).
>                         Analysts get it wrong often ,,and sometimes they
operate a hidden agenda.
>                         Trust funds gives a salaries to one or many people
who the investor never
> sees. If that investor saw some of these people, they might not let them
babysit their dog  less
> alone trust them with their life's savings.(ask the question, would you
let this man go out with
> your daughter?)
>                         WISDOM is a great asset....James unfortunately
this grows with age..unless
> you have acquired it as a natural gift ( I developed wisdom at a young
age.useless at the
> time....still capable of doing stupid things..probably more so than
others) To help develop wisdom,
> associate and talk lots to the elderly people and relate to them and their
experiences.
>
>                         Don't always believe what you read on
sharechat.......dammmmn....there goes
> my post here....oh dear..
>
> Happy learning
> Hoop
>
>   ----- Original Message -----
>   From: james.goodman
>   To: sharechat@sharechat.co.nz
>   Sent: Friday, February 22, 2002 12:41 PM
>   Subject: [sharechat] why is the price falling
>
>
>   This was a question I asked, it didnt have to be answered but insted of
getting in to detail I
> asked the question to see if anyone had any idears (maby some inside info
or something else ) or
> maby they could direct me to something else (as they did) to help me which
I apprecaite, as I am
> only learning on where to find what I am looking for on here by reading
what other people say so I
> can search for it and read up on it.
>
>   I think you should take the post for what it is "A general question."
There is allways alot of
> answers for a general question.
>
>   PS I am only 19 and just getting into this side of things there is
allways alot to learn
>
>
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