Sun Tzu said: What is War? War is one of the most vital affairs of state. War is where life and death meet; it is the road to destruction or survival. It demands study.
Participating in the stock market is like fighting a war.
Many of us paid high tuition fees in the stock markets, hopefully after this constant trial and error, we can build our own stock picking logic, and can turn the negative energy into positive one.
When we enter the stock market, we must develop a habit, looking at K Chart or Japanese Candle Stick Chart to determine the point of entry and exit, so that we can increase the winning edge.
We, basically, are looking for the uptrend stock, as long as the direction is right, you set to make money.
Thus, after the K Chart shown the rising pattern, we should just enter immediately.
When a stock is in the upward trend, we can buy low and sell.
We must maintain our positive energy and should not treat investing in stock as gambling. We should monitor our holding daily as to their fluctuations. Stock investing is a lonely game. We should be able to withstand the pressure of working alone and we should not relax because the stock market will never sleep. So how can we sleep, we must always stay awake and alert.
We must just buy when we see a buy signal. If we miss it, and if the trend has changed, we should just give up. We rather miss than making a wrong move.
However, once we see a sell signal, we should just sell. We would rather take profit prematurely than delay in our move in selling which would cause us a fortune.
If we are a small retail player, we should carry with us the thinking that little profit would add up into a fortune just like our Malay friends said: sedikit sedikit menjadi bukit. Each time if we can achieve a net profit of 3%, for 10 trades we can make 30% profit. We can be comparable to Mr. Warren Buffet.
Let us work together! Cheers!