Monday, August 8, 2016

3 Small Things I Do That Make a Difference Between You and Me

It is the little things you do that make a difference and over the years, I have accumulated many experiences that have developed into a set of powerful sentiments that distinguish us.

1.       Timing
I play stocks with ‘timing’ rather than price. The concept ‘timing’ is subjective and I refer that to the readiness of the stock. It is understandable that price is a major factor in the decision of purchasing a stock. This, however, impairs one judgement and could cost you an opportunity or teach you a painful lesson on losing money.
On that point, it is not about the price but rather, when the stock is ready, even at a higher price, the stock will breakout. Only then, my position is secured because I know that I am buying on the way up.

2.       Growth Stock
As I preached to my fans, community, and strangers who listened to me before, I emphasize continuously that growth stocks are the best category of stocks you can have in your CDP account. The reason is simple; capital gain from such stock over a decent period of time are far more rewarding than the mere percentage of remuneration that dividends gives.

Stocks like MM2 and Jumbo are one of those recent ones I have shared recently. Their growth is superb and although these stocks have demonstrated their potential, I am on the constant lookout for those underlying ones, hidden from public eyes. I am 'gunning' those and in due time, look out for my impending profits.

3.       Emotions
I manage my emotion better. Many a time, I find out from the people of a liking to develop an attachment to stocks and as a result, they amass a list of stocks in their CDP account. Alarmingly, most of the stocks are in paper losses and because they have that poor mentality of leaving it there to not realized that loss and hoping one day, it would reach back to the breakeven point.

The management of emotions – hope, greed, and fear is something that along the years, experience has taught me harshly and as a result, I manage them appropriately. In the case of having paper losses, I would usually advise people to cut loss after proper due-diligence, re-consolidate their capital and put it in the right growth stock.

Furthermore, to extract the essence of ‘timing’, it demands keen observation and studying of the chart. This is something exclusive I share with my community and on that point; I will be hosting and sharing more information on my concepts and sentiments on Friday. Kindly bring a pen and paper to copy down.

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Ronald K - Market Psychologist - A Stock Market Opportunist