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New investors to the market are the winners- Read if you are free

+3
mono
Kumar
sirimevan
7 posters

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sirimevan

sirimevan
Manager - Equity Analytics
Manager - Equity Analytics

New investors to the market are the winners

Though I don’t write much I actively participate in the forum, what I was thinking was reading at delted pereras article he was saying that total luck should be there in investing as well, its not the talent and the experience only,
How far is this correct, though I thought that is not true but at the end I have to admit the fact that luck should be also there since though I was in the market and im a bit experienced with the market, still I have done my purchasing looking at the patterns and the fundamental value, yet that did not help me to come out with a decent profit yet during the last fall though I have claimed profits before,
While this was happening I told my sister few days back why don’t you invest some money in the stock market instead depending on your interest( she lives only from the interest money that she claims from the bank)
Then she agreed and purchased few stocks and she is having a 10 to 15 percent gain just within few weeks, so I was thinking to my self is she lucky or am I lucky? Then it came in to my mind its not the talent or the ability or even the capability but its timing and luck as well isn’t it?
I don’t want to drag the story much, it’s always the time that you enter and exit will give you a decent profit including your luck as well , isn’t it?
If im wrong what has happened to all the old investors at CSE? Who are the winners today? They are all the new investors isn’t it?
So in this industry experience or the time that you have been in CSE doesn’t count it counts the time that you enter and exit which comes with your luck,
Correct me if im wrong , all the best and happy trading
Regards



Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Please read this article.
http://forum.srilankaequity.com/t15714-the-five-phases-of-the-stock-market-cycle

sriranga wrote:
5. Mark-Down Phase
The final phase in the cycle is the most painful for those who still hold positions. Many hang on because their investment has fallen below what they paid for it, behaving like the pirate who falls overboard clutching a bar of gold, refusing to let go in the vain hope of being rescued. It is only when the market has plunged 50% or more that the laggards, many of whom bought during the distribution or early mark-down phase, give up or capitulate. Unfortunately, this is a buy signal for early innovators and a sign that a bottom is imminent.
It is new investors who will buy the depreciated investment during the next accumulation phase and enjoy the next mark-up.

mono

mono
Vice President - Equity Analytics
Vice President - Equity Analytics

Winners are always the old investors who were smart about their investments. New investors are clueless, they will jump into runs way too late cash out in the pull back and jump in again way too late. Back in October i was harping about LFIN, I bought LFIN upto 85% of my PF at an average price of 130. LFIN touched 150 today. I've made a profit despite all hell breaking loose in the last 4 months.

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics

mono wrote:Winners are always the old investors who were smart about their investments. New investors are clueless, they will jump into runs way too late cash out in the pull back and jump in again way too late. Back in October i was harping about LFIN, I bought LFIN upto 85% of my PF at an average price of 130. LFIN touched 150 today. I've made a profit despite all hell breaking loose in the last 4 months.

Mono, I too have invested in LFIN. Strong shares can always make come back during unexpected times also. We saw this happening to LFIN last year too. Today the HNWI interest on LFIN we saw wasn't there. There was guy with a 1 Mil order and getting over 120000 share at Rs 140 yesterday.

If this guy returns and there is stripg play LFIN still has room to move a lot ahead I think. But not sure of the direction after Rs 150 as it depends on the play and overall market trend. What is your take on further movement?

rjeranimo

rjeranimo
Equity Analytic
Equity Analytic

Hi Sirimewan....

Yes....you are absolute right. but most of people don't believe this truth. i mean fortune. always they say talent, courage, and blahh...blah..... if you lucky enough you don't want to try it. it will come to you instead. only thing you have to do is on the right track. to be on the right track, still you must be lucky enough. no one is talent, or everybody is nothing but fortunate or unfortunate. all are depend on this.

econ

econ
Global Moderator

I think one of the HNWI is getting behind of this sudden hike of LFIN..

mono

mono
Vice President - Equity Analytics
Vice President - Equity Analytics

econ wrote:I think one of the HNWI is getting behind of this sudden hike of LFIN..

There is always something like that behind share movements here. everything from LOLC to Poultry to CFLB all of those shares involve someone or a bunch of people playing the share.

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

Those who invested in 2010 and 2011 were affected by the bear market.
New investors who staats in jan 2012 already gained more than 15 -20 % averagelyy.
End of the bear period, so many new investors are coming to the market is obvious.

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