I shall try to answer this question in point form so that readers need not spend too much time on this. this is not in order of importance. (actually the first 3 points have some similarities)
1) not having a plan. it is well said before : fail to plan, plan to fail
2) having a plan, but failing to do one's homework in due diligence, in most cases, failing to know in great detail the product that one's buying.
3) having a plan, doing one's homework in due diligence and knowing in great detail the product that one's buying, BUT the trouble is buying at too high a price. sure, in a good company, eventually dividends and stock appreciation will make up for it, but its the time wasted and fustration in waiting, OR the trouble is not giving oneself an adequate margin of safety especially in value stocks.
4) trading mentality, broking houses love such people.
5) not trading mentality, but frequent buy and sell, again broking houses love such people.
6) worse still, gambling mentality, buying just based on feel, no basis otherwise.
disclaimer: i am no investor guru, the above points is just based on my personal experience, which might not be representative of the true facts.
1) not having a plan. it is well said before : fail to plan, plan to fail
2) having a plan, but failing to do one's homework in due diligence, in most cases, failing to know in great detail the product that one's buying.
3) having a plan, doing one's homework in due diligence and knowing in great detail the product that one's buying, BUT the trouble is buying at too high a price. sure, in a good company, eventually dividends and stock appreciation will make up for it, but its the time wasted and fustration in waiting, OR the trouble is not giving oneself an adequate margin of safety especially in value stocks.
4) trading mentality, broking houses love such people.
5) not trading mentality, but frequent buy and sell, again broking houses love such people.
6) worse still, gambling mentality, buying just based on feel, no basis otherwise.
disclaimer: i am no investor guru, the above points is just based on my personal experience, which might not be representative of the true facts.
Will he poke?
ReplyDeletePoke what? Maybe i din get ur point?
DeleteWe will wait and see if he come to give his comment on (1) to (3).
DeleteCW,
DeleteNo need to poke.
Paul has poked and answered his own poke ;)
Having a plan is not enough.
There are terms and conditions 2 and 3 :)
And with your experience, I am sure there are terms and conditions 4,5,6... and more!
Just ask your auntiie noob ;)
LOL!
P.S. Sorry Paul. Borrow your place to poke CW. We can banter anywhere and everywhere!
Haha. Good joke for a monday.
DeleteLol.
Enjoy!!!
Hi Paul
ReplyDeleteSome people no plan no fail, hantam casino all in on black :)
Yes, then double up when they lose. Easiest way to go bankrupt.
Delete