Bear Market - Control your emotions

Market downturns are the killers for most immature investors with less experience. I'd like to quote the following from the book "The Intelligent Investor".

* The Market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists.

* The future value of every investment is a function of its present price. The higher the price you pay, the lower your return will be.

* The secret to your financial success is in yourself. If you become a critical thinker who takes no Wall Street (in our case CSE) "fact" on faith, and you invest with patient confidence, you can take steady advantage of even the worst bear Markets. By developing your discipline and courage, you can refuse to let other people's mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave.

Happy Investing!

I never read any book about stocks and not going to read as well. Never deeply studied any graphs.
An author never can predicts about emergency situations .ex: Next Tsunami, Bomb explosion, Sudden death of a CEO,

All you need is 95% common sense and 5% luck. Also few months + experience at the market.

UKboy wrote:I never read any book about stocks and not going to read as well. Never deeply studied any graphs.
An author never can predicts about emergency situations .ex: Next Tsunami, Bomb explosion, Sudden death of a CEO,

All you need is 95% common sense and 5% luck. Also few months + experience at the market.

Ya true! but it's always good to read, because you can know what the other have done to become successful. I think books on fundamentals / value investing are good to read. Also, I have read many books on day trading which I feel most of it's bullshit.

UKboy wrote:I never read any book about stocks and not going to read as well. Never deeply studied any graphs.
An author never can predicts about emergency situations .ex: Next Tsunami, Bomb explosion, Sudden death of a CEO,

All you need is 95% common sense and 5% luck. Also few months + experience at the market.

Woah UKBoy you are a natural? I am impressed.

UKboy wrote:I never read any book about stocks and not going to read as well. Never deeply studied any graphs.
An author never can predicts about emergency situations .ex: Next Tsunami, Bomb explosion, Sudden death of a CEO,

All you need is 95% common sense and 5% luck. Also few months + experience at the market.

How about controlling your emotions? (Greediness and fear). I attribute a big % of the success to it.

UKboy wrote:I never read any book about stocks and not going to read as well. Never deeply studied any graphs.
An author never can predicts about emergency situations .ex: Next Tsunami, Bomb explosion, Sudden death of a CEO,

All you need is 95% common sense and 5% luck. Also few months + experience at the market.

correct mate,
but 50% common sense
45% patience
5% luck to me.

UKboy wrote:I never read any book about stocks and not going to read as well. Never deeply studied any graphs.
An author never can predicts about emergency situations .ex: Next Tsunami, Bomb explosion, Sudden death of a CEO,

All you need is 95% common sense and 5% luck. Also few months + experience at the market.

I would recommend a book called 'The Black Swan: The Impact of the Highly Improbable' by Nassim Nicholas Taleb. The author argues that most of the really big events in our world are rare and unpredictable; therefore, trying to extract generalizable stories to explain them may be emotionally satisfying, but - as you said - it's practically useless. 9/11 is one such example, and stock market crashes are another.

UKboy wrote:I never read any book about stocks and not going to read as well. Never deeply studied any graphs.
An author never can predicts about emergency situations .ex: Next Tsunami, Bomb explosion, Sudden death of a CEO,
klare
All you need is 95% common sense and 5% luck. Also few months + experience at the market.

I will be writing a book on how to deal with the CSE.
This is very important trick in the investment game.
There are conflicts of interest with the CSE board itself and all the CSE members should declare all their assets, portfolios and boards they are on as directors before taking up any responsibilities, and every year (I prefer every six months) re-declare them for the general public to know.

It's show be like running for the presidency of the United States!

hybrid_OS wrote:
I will be writing a book on how to deal with the CSE.

Are you seriously considering or working on it ?

slstock wrote:

hybrid_OS wrote:
I will be writing a book on how to deal with the CSE.

Are you seriously considering or working on it ?

Do I sound as if I am joking?
Give me some time chum and I will deliver!

Shall try and make it before 10 persons end their lives because of the CSE!

Hope I am a pessimist that is wrong!

hybrid_OS wrote:

slstock wrote:

hybrid_OS wrote:
I will be writing a book on how to deal with the CSE.

Are you seriously considering or working on it ?

Do I sound as if I am joking?
Give me some time chum and I will deliver!

Joking??? Was just clarifying.

Sooner the better. Good luck. Let us know when done.

Antonym wrote:

UKboy wrote:I never read any book about stocks and not going to read as well. Never deeply studied any graphs.
An author never can predicts about emergency situations .ex: Next Tsunami, Bomb explosion, Sudden death of a CEO,

All you need is 95% common sense and 5% luck. Also few months + experience at the market.

I would recommend a book called 'The Black Swan: The Impact of the Highly Improbable' by Nassim Nicholas Taleb. The author argues that most of the really big events in our world are rare and unpredictable; therefore, trying to extract generalizable stories to explain them may be emotionally satisfying, but - as you said - it's practically useless. 9/11 is one such example, and stock market crashes are another.

OK Antony, I'll have a look. Cheers