Last evening 4 young lecturers, all
about 30 years old from Super Education Group came from KL to visit me
in Ipoh. They told me that they have been reading all the articles I
posted and have been making money from the shares I recommended such as
Latitude, Lii Hen and VS. As all the shares have gone up a few hundred
per cent, they wish to know what are my top picks.
Obviously they have been
following my share selection golden rule which is that I must be very
sure the company can make more money this year than last before I buy
the share.
Now they want to know how to become a
super investor and become millionaires as soon as possible. They
reminded me of my youth when I was so passionate about making money to
become a millionaire.
I am encouraged to continue posting
articles because there are so many people have benefitted. Fortunately
there are only a few idiots who continue to make senseless remarks and
seemingly quite happy to remain poor.
Among the 7 traits which I have
elaborated in my previous article, the most important, and rarest, trait
of all is the ability to live through price volatility and fluctuation
without changing your logical thinking process. This is almost
impossible for most people to do when the share goes through a price
correction. A swing up or down over a relatively short time period is
not a loss and therefore not risk, unless you are prone to panicking at
the bottom and locking in the loss. But most people just cannot see it
that way; their brains would not let them. Their panic instinct steps in
and shuts down the normal brain function.
Most investors believe that no share can
continuously go up or come down indefinitely for whatever reason. They
will sell to take profit and buy back during price correction. But quite
often, the correction is mild especially if the share has fantastic
profit growth prospect. They would not buy back at a price higher than
the price they sold.
Among the shares I am holding, Ge Shen,
Can One and Chin Well are my best performers yesterday with unusually
high volume . They went up 22, 17 and 16 sen respectively. Many ordinary
investors would have sold and many smart investors would have bought.
The following 3 price charts show that
they often have price corrections and only ordinary investors would have
sold and would not buy back when they continue their climb.
If you want to improve your technic in
investing you have to study this article carefully until you have
mastered them. You have to absolve them into your brain so that you can
react automatically like a reflect action.
Koon Yew Yin 官有缘 - Investment Lesson on price volatility and fluctuation
http://koonyewyin.com/wordpress/2015/12/18/investment-lesson-on-price-volatility-and-fluctuation/
