Patience and hard work
We often end up in a "Losing position" due to retail always lagging behind the institutions.
Furthermore to add salt to the wound, most retail investors do not do their own research and just follow what the "Analyst" recommends.
Yes they may have a short to medium term profit as long as they realise it and sell, the problem is the institution is always faster than the retail.
so called "HOT" picks may actually be overvalued and some institution wants the retail to push the price even higher so when the institution sells it's already too late for the retail.
There are many psychological plays at work in the market.
"Buy the dip" yes, that is wise if given if you have the holding power to keep reducing your DCA. You must remember to ask yourself this, "How much do I understand and know about the businesses I invest in?"
in that sense wouldn't it be better to just get an S&P 500 ETF because the risk of it going to 0 is almost close to none?
If you're willing to put in the hard work with patience you can find many bargains that have been neglected by the masses.
Macroeconomic, that is something investors should be their research on. To have information before the mass, then from there to the sectorial and fundamentals of a company.
A smart way to put it is to buy when that sector is in a despair phase and look for a good company based on their fundamentals and invest in it and leave it till that sector eventually recovers.
Train yourself to overcome your emotional impulse, learn and improve from the losses and it will be worth the price you paid. Have patience and it will be rewarding. Ignore the masses. Think smartly like institutional investors.
Thank you for your time and have a nice day!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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A new journeyman in the financial landscape, there are no losses in this journey. Only wins that awaits.
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104917721 : So, with regard to the KLCI financial benchmark or bank stocks today, may ask what point (location) are they now based on the graph (red line)? Tks
Ah Kwang OP : You can use the shiller P/E ratio and the buffett indicator. You have to remember that the majority of indexes follow the US side so if they crash, no matter how undervalued the stock nor index it will follow the trend. Take the example of the recent 10% correction on the nesdaq. You have to do your own research, remember don't get caught by your own mental biases.
Ah Kwang OP : as mentioned in my post you have to take from the marco economics point of view. Top down and what comes next.
103667367 : seem like ytl now
104175567 : What analysts and "pro trader" out there don't teach you is RISK.
This is why retailers will always get crushed trading futures and anything with leverage.
Most of us just want to be rich and follow others who have BIG P/L let say 10K per day.
But little do they know that 10K per day require a TON of capital behind it in order to manage the risk well.
Then novices will get lured into taking 2x 3x 10x leverage, taking unnecessary risk.
This is like speeding up to chase F1 car with tiny city car, the F1 driver has necessary tools and right engine in contrast to the latter.
104175567 : Hey I like your article, this is well written and it resonates well with me, I usually criticize people when I see something is really wrong fundamentally.