කොරෝනා වලින් ගොඩ යන බිලියනපතියන්

thestock123 wrote:Today i hope 5 % drop in indices

thestock123 wrote:@@ ErangaDs
This is after long time. Remeber this is election time
He he

wallstreetguy wrote:I think the best thing to do is to keep cash in hand! 

The present situation is not great and COVID19 cases have entered Colombo.

The government played a part by locking us down for months when cases were easily traceable.
Now the government is downplaying when cases are untraceable and before you know it, the whole country is affected.

Not being pessimistic. I'm a strong bull but I'm also a realist! I don't want people to lose their money on blind shot and optimism shared by other members! Optimism is good! But be realist!

We have to be realistic. And not many want to accept it since we all have long positions.

Put that aside, the country is in a grave dangerous situation. The best thing to do is have cash in hand and wait.


You might say foreigners are buying and we are modayas. We modayas earned our hard earned money. Foreigners are using other investors money and buying in peanuts sizes. For them 100 - 200 m is just half a million dollars and they will continue to downsize it buy averaging it. And there fund size is in billions of dollars and they can sell it at loss. However, what is incoming is just peanuts from foreign investors. Most of the investors cashed out! 

We ordinary people cant afford to do it. Once you buy! You have to pray to all the gods out there!

Be smart. This is not Wall Street.


Even Rusi Captain can take a hit of nearly half a billion from Seylan Bank investment, i'm sure we should have the stomach to take a small loss and stay on the side lines until the COVID19 cases come to a controlling enviroment.

You see that's the thing with Investing in the stock market. Invest disposable income or dont invest in the stock market at all. you cant expect to make a quick sizable gain by just putting a couple of million rupees and trade in short time frames. You gotta be in it for long term and if u are in it for long term, you gotta buy when market is continuously going down and not when it is going up. For those who bought it can continuously average it or forget about the stock for some time. If you have invested in a good company at a fair price, you will never lose in the long run. 

If an investor thinks that he can make profits by selling at a loss when market goes down and buying it back when markets picking up is a sure mantra to keep on losing!!!

wallstreetguy wrote:Let's say you bought in JKH for a specific price. The price was stabilized and it was not volatile. You put your whole money in to it e.g 1 million. 


The share plummets and the stock is trading half of the price now. Maybe you had bought it when it was over valued.

For you to average it, you need to pump in 1:1.5 times of your initial investment to get it close to the trading price.

Not many can afford to put another 1.5 million to the same jockey! and once you witness such a dip, its like a snake bite! You don't want to risk again. so you either keep it and forget about it like an ostrich investor or you take the hit and make sure you invest in something solid to cover your losses, or maybe never come again! unfortunately.

Billionaires can afford to. They can even get a quick bank loan or overdraft to make such position. You and I can't buddy! Unless you're a billionaire! 

 Been in this for more than a decade, I've seen alot!

wallstreetguy wrote:Exactly! This market needs short selling!

wallstreetguy wrote:Let's say you bought in JKH for a specific price. The price was stabilized and it was not volatile. You put your whole money in to it e.g 1 million. 


The share plummets and the stock is trading half of the price now. Maybe you had bought it when it was over valued.

For you to average it, you need to pump in 1:1.5 times of your initial investment to get it close to the trading price.

Not many can afford to put another 1.5 million to the same jockey! and once you witness such a dip, its like a snake bite! You don't want to risk again. so you either keep it and forget about it like an ostrich investor or you take the hit and make sure you invest in something solid to cover your losses, or maybe never come again! unfortunately.

Billionaires can afford to. They can even get a quick bank loan or overdraft to make such position. You and I can't buddy! Unless you're a billionaire! 

 Been in this for more than a decade, I've seen alot!
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I have seen this happening alot. When we invest in stock market (I emphasize Invest not blind buying & selling) there are certain good practices we need to follow and not putting all your eggs in one basket is one of them.

I have learnt this lesson in the hard way during the 2009-2010 time period where all the stocks were surging and i had put all my money on Greg walker when the share was at it's peak (manipulated or not i don't know)

In a scenario where as you mentioned a guy puts all his money on a share like JKH which is fundamentally strong and assets wise 2nd to none, you don't expect to make a massive gain in 2-3 months but you invest in it in the long run. If you invest in the long run and if you believe in the share that you bought, forget about the market fluctuation because your intentions were to make a capital gain in the long run. So trust in your self and the judgement you made to buy the share and wait for it to go where you intend it to go.

If you are a trader not an investor and you are not in it in the long run, well then like i said dont put all your money in one horse and keep something in the pocket as well. cos true traders know when to go for the kill. its something that you need to practice over a period of time. (don't get me wrong I am not a pro at all) Just my two cents