I WAS OUT for a while. You see, I have decided to stay for some days in Brunei after attending Asia’s wedding of the century, its Crowned Prince to a commoner. I just could not say no to the Crowned Prince. He is a drinking buddy, by the way.
There were lots of personalities there. Our cute president was present with her contingent, hoping to establish a warm diplomatic relationship with the royalty from Brunei. Of course, there must be a reasonable trade-off with the expenses she incurred. There were royalties from other countries too. And some of their princesses did tried to get my phone number, but alas I told them that my mom is very, very strict when it comes to girls. So they backed off.
While I was busy talking to Suzanne Jung (CNA's babe), I noticed some of those Filipino pimps who lure showbiz talents to have some not so conservative encounter with our Brunei state visitors, were negotiating with those two Arabian hunks. Yikes, I might get sued for this.
I was hoping for Mr. Alan Greenspan to be there. However, the Fed Reserve Chief Instant Messaged me in Yahoo Messenger that he would not be there because he still will discuss matters with the monetary board and Treasury Secretary John Snow whether there was really a need to increase rates for the third time. He told me that he was not yet decided. The next day, I just heard that they did increase the rates to 0.25% higher.
And for the rest of my time, I tried to forget about the bad news that Rhea Santos got wed. Heartaches again. So I spent my days trying to sort of looking for Brunei babes. But I have realized they don’t turn me on.
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I HAVE basically compiled some rules for trading which might be very help to Newbie equity market aficionados. This has been the work of my favorite columnist Ronald Nathan and from Asia’s notorious bear, the flamboyant Marc Faber of Marc Faber Ltd.
So here goes.
1.There is no such thing as long term trading.
Some say, “Buy blue chip stocks and forget about them.” This is one of those popular delusions. Ask any Japanese who started investing in the Nikkei market and is still losing up to these days. Or suppose you invest $100,000 in any Carthage Market during those times of Romans, and it guarantees you a 1% returns a year. Would it be a huge some of money by this time? Yes, true. But let me ask you where on earth Carthage is today?
The rule is, you BUY only when the market is down, and the technical indicator says it is going to go up now. This week, Morgan Stanley’s (MWD) market price fell due to its 3rd quarter losses, and I think this is right time to BUY. In contrast, you SELL when the market is UP, and technical indicators say the momentum is slowing and is about to decline.
In reality, investors fail because they trade against the trend. So they buy HIGH and
Sell LOW. Is it not pretty exciting?
2.Do not rely on top picks. Do your homework.
The secret of successful traders is not at all a secret. They do not rely on recommended shares. Bloomberg television usually warns the public that those who buys recommended shares, do so at their own risk for stocks may go down. I am not saying that shares promoted by star fund managers are not advisable. They too have their own merits. But I think the best way to earn money is to do your research.
Yes, there are those who lure you to buy their company’s shares. Before jumping into BUY order, you should check the fundamentals of that company. You can complement that with technical indicators.
(To be continued…)
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thespeculativebubble@yahoo.com