Hi, Relaxing & Greenrookie,
Thanks for sharing your experiences. Many people I know, and myself, have also gone through similar experiences. The questions that many of us used to ask were – It is so easy to make money in the stock market, just buy low and sell high; how was it that we still lose back all our money AT THE END OF THE DAY? How could this happen and why we never learn from our past mistakes?
The answer is that the market is irrational. It has the habit of fooling us every now and then. Hence, we need to also understand market behavior as well as market participants’ (like ourselves) behavior so as to lessen the chances of being fooled again. As a simple illustration, our STI used to follow diligently Dow’s movement but now and then it decided to chart its own path fooling many who believed it would continue to be doing so.
When the market is at the start of a long bullish trend (only once in a long while), investors do not require much skills or qualifications to make money. Hence, almost all investors would make money easily and become complacent. When the market continues its ascend to the top, the downside risks keep increasing and the upside potential percentage gains decreasing. As all good things must eventually come to an end, investors who get caught with high-end purchases are likely to suffer huge losses especially when the inevitable or an unexpected event surfaced with the market going into a big plunge. This pattern is being repeated over and over and accounted for many smart people losing money at the end of the day.
A useful reminder for many of us is –
“FOOL ME ONCE, SHAME ON YOU
FOOL ME TWICE, SHAME ON ME”
In a bull market, everyone is a hero. In a bear market then you will know who is swimming naked lol...
observer2 wrote: Hi, Relaxing & Greenrookie,
Thanks for sharing your experiences. Many people I know, and myself, have also gone through similar experiences. The questions that many of us used to ask were – It is so easy to make money in the stock market, just buy low and sell high; how was it that we still lose back all our money AT THE END OF THE DAY? How could this happen and why we never learn from our past mistakes?
The answer is that the market is irrational. It has the habit of fooling us every now and then. Hence, we need to also understand market behavior as well as market participants’ (like ourselves) behavior so as to lessen the chances of being fooled again. As a simple illustration, our STI used to follow diligently Dow’s movement but now and then it decided to chart its own path fooling many who believed it would continue to be doing so.
When the market is at the start of a long bullish trend (only once in a long while), investors do not require much skills or qualifications to make money. Hence, almost all investors would make money easily and become complacent. When the market continues its ascend to the top, the downside risks keep increasing and the upside potential percentage gains decreasing. As all good things must eventually come to an end, investors who get caught with high-end purchases are likely to suffer huge losses especially when the inevitable or an unexpected event surfaced with the market going into a big plunge. This pattern is being repeated over and over and accounted for many smart people losing money at the end of the day.
A useful reminder for many of us is –
“FOOL ME ONCE, SHAME ON YOU
FOOL ME TWICE, SHAME ON ME”
just got home so just some quick points here for the time being...
I believe Nextinsight will do a writeup regarding this briefing soon.
+ Sharebuyback is in consideration. The sharebuyback mandate lasts till next yr Apr. so just wait patiently.
+ Can look forward to year 2014 as they undergo expansion and build their sales network... Should be able to expect more news in 2014 as plans get more firmed up, i guess.
+ The new 15 distributors will have a shorter credit days while old distributors will still be given the 120 days credit for the time being. But as new distributors grow, we should see the AR and cashflow improve over a medium to long term horizon. But for short term, the impact in AR will be minimal.
+ Regarding book orders not revealed, the management has noted the concern. They will see how it goes.
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