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The best trading strategy is not to trade

(2009-10-08 03:00:30) 下一個
The best trading strategy is not to trade, remember buffet\'s analogy of a puncture card, you have a punch card with 20 holes to punch for your life time. Every time you put your money done for an investment, you punch a hole, after 20 times, you are done with investment for your life. So you will not move until you are absolutely sure you are going to win. This kind of investment\'s risk reward ratio would be so high, you are almost certain to win. I think every body here had come across some situations that you have hard evidence and strong conviction that you are going to win this time, the problem is did you act on it and how much? you do your research, you look and look, you assess the risk and reward constantly, then you make your move, sit back and wait. both buy and wait are hard. I look back at myself, I think I made too much move still. I wonder if there will be a day I could do just what Buffet suggested.

By the way, my lowest buy of ucbh yesterday doubled at today\'s peak. I am thinking should I move money from mbi to ucbh. scss closed at 6.15 today, I bought it at 0.9 two months ago. I only wish I have majority of money on scss, xl, rdn, ago, not on mbi. among all these stocks, mbi has the most significant insider buys.

Zeng xiong, what you think about mbi now? TA wise, I think it is going to go up from tomorrow. I think correction is almost done with mbi and rdn. but I am now focusing on ucbh and loop now. I hope mbi and rdn can wait for a couple of days, I moved some fund out of mbi and rdn on the way down, I hope to get back before they reach my selling price. I believe that if my guess is right, ucbh will have a violent up in the next few days, then I can get some fund out of ucbh, back into mbi and rdn after that. ucbh is more risky here before its Mingsheng news is confirmed。 I think chairman mao and buffet have the same strategy, 打殲滅戰,4 比1到10比1的兵力來消滅敵人,100% 贏麵。wish I can do the same.
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