蒼海泛舟
方顯英雄本色-- 股市投資探討
Everyone come to trade or invest want to make money, but it is amazing to notice that so many people failed even with so many money, time and efforts put into the market. 80% people lose money in stock market. Even you hear there are so many people claim that they have made tons of money, doubled in three weeks or 1000% gain in one trade, but if you check their TAX return, just a few people can make real money. Why so many people come to invest and failed? This could be a million dollar question and quite different answers from different aspects. I think following two key questions will help to find right answer.
- Do you do right thing?
- Do you do things right?
Do right thing and do things right will lead you to the success for anything you choose to do.
- Do right things:
Everyone think they are better than others in stock trading. In fact, not everyone born for trading. Someone just don't fit into this area. Here is a real story to explain why. I have a good friend who are full of energy and passion, he is also a very capable person, had his Ph.D. in early years. But he failed in his investment badly. After three years trying, he lost all his money and his relatives' money, more than half million. Luckily he figure that out, and find right thing to do. He started a company and doing something related with his professional area and doing very well. Today, he became multimillionaire and made 10 times the money he lost in stock market. You see the power to do right thing. So think through it whether you are suitable to do trading. Is this a right thing to do for you?
- Do things right.
Once you affirmed that investment is right thing to do, you need to find the way to do things right. One concept may help: Slow is fast.
From statistical data, 80% short term investors lose money, and 95% long term investor have capital gain in 10 year period. The time gave you the power to gain even you are not investment expert. Unless you are a savvy in trading, you should only use a very small portion of your money in day to day trading.
Slow does not mean stop. But you need to do your home work thoroughly before you buy anything. I have a small account setup on early June to test trading strategy. I select 6 stocks each bought 100 shares. I never tough them purposely since then. Today the combined return is 42% even experienced July, August severe market correction. It is not great, but it is better than some of my short term trading at same period. Among them 4 gains 2 lost (They are Drys, DSX, AMZN, MA, MS, JSDA ) The big gainer is DRYS 189% gain ( Bought at $39.2) and big loser is JSDA -46% loss at low. Even with the big loser JSDA, the group of investment result still reached 42%. So slow is fast work well even in the relative short term investment and diversification is the key. (Expert like Warren buffett doesn't need diversification, but average Joe do need it.)
Find way you comfortable with and stick with it once it works. This will bring you a better chance to win in the investment world.
Just some thoughts to share.
