Understand Yourself as an Investor

5 simple behavior of being an Investor and NOT a Gambler in Stock


1. Opportunity vs Capital

–Selling too fast; worrying about making bad decision on selling too fast that making less money in a high earning stock

–Buying too slow; worrying miss opportunity in a Popular stocks that everyone buying (Especially on internal Tips)

Note: There is no selling too fast or buying too slow. Take time to analyse. Missing an opportunity is better then losing your capital.


2. Realised Lost vs Capital Stuck

–Emotionally affected by the purchased price of stock. Feel embarrass on a loss.
–Having the concept of; never sell never lost

Note: A lot of people just keep holding on the stocks; and never sell until it make a profit or back to cost. And this people always mention, never sell never lost


3. Best Buying / Selling Price vs Buying / Selling in GOOD Price
- Always q in the buying price or best buying price of the day
- Hesitate to buy on the selling price OR sell at the buying price

Note: Keep q in a lower / higher price cause the trade undone. The price might make much more different on the next day / hour.

4. Anchoring

–Often assume that the market price is the correct price, rely on recent market views and opinions even though it differs from historical, long-term averages and probabilities
–DON’T anchor yourself into recent performance without taking into account true historical returns: the compound historical returns

Note: Normally people will buy stocks in good time. This is a lesson to analyse on the economy cycle, look into the history and predict the FUTURE.

5. Over confident
–Believe you can consistently time the market? WOW!
–In reality, there’s an overwhelming amount of evidence that proves otherwise
–Overconfidence results in excess trades, with trading costs denting profits
Note: The feeling of having a third eye to predict a stock price without proper analysis bring you to become the best GAMBLER...