Quote

Bull markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria.

Monday, July 13, 2015

Recap on last week

Market was bit volatile last week.

Greece issue and Chinese stock market sells-down as well as Najib and his 1MDB issue in local filled up the newspaper's headlines. 

And on last wednesday, Hang Seng index closed almost 6% down, its biggest one-day drop for nearly seven years. 

Nearly half of the listed companies in Shanghai and Shenzhen filed for trading halt in an attempt to prevent further losses explained the seriousness. 

Even the regulatory commission made a new rule that controlling shareholders and managers who are holding more than 5% of the company's share could not reduce their holdings for 6 months could not stop the sold off. 

Local bourse index dropped below 1700 again, after few months of crawling back to above 1850.

So, is it a good chance for investors to buy some fundamentally good companies during this volatile market?

Just like what Warren Buffet said "Be fearful when others are greedy and greedy when others are fearful" ?

But it's always easier to say than done. 

Watching your paper gain getting lesser and lesser is no joke. 

And to buy it when the counter drops more than 50% made you wonder is it something bad happened to the company which you may not aware of.

The angel of your side told you that the company fundamental remains unchanged. You had studied it few times and it's a bargain now. 

But the devil of your side told you to wait and it may drop even lower. Your hard earn money will just gone like that. It's very scary. Stay aside first. 

Discipline, mentality and decision making. 3 important elements that you cannot learn from books and others. 

Experience it 

Investing really is a life long journey. 


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