Saw this nice little opening paragraph in today's FSO market wrap up.
- Anything can happen in the markets, and that anything can move against you in two ways. Either you can be wrong in your fundamental analysis, or your analysis can be right and the market can disagree with your views long and hard enough to flush you out of your positions. If you are so set in your views that they will not change, then your position sizes must be in amounts where your hands will remain strong.
Interesting eh?
Things to consider:
1. Are you really investing investing?
2. Are you investing based on your perception of the market?
3. Or are you really trading based on your perception of your fundamental analysis?
4. Or are you trading based on your perception of your technical analysis of the market?
5. Or are you trading based on your perception of your technical and fundamental analysis of the market?
6. Or are you trading based on what you think the market is telling you?
How? Does it even matter?
So what are you thinking about?
Cheers!
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2 comments:
Moola,
Are we living a life? :P
Your questions are fairly philosophical to me, they are definitely thought-provoking.
To me, it is the business that counts. Do I understand the business? Sometimes, I must admit that I do not understand it better than an average investor. So there is a stop-loss mechanism in my investing strategy.
So am I investing based on the perception or the reality of the business? I don't think I will ever know the answer. I am always trying to invest based on the reality, but at the same time I aware that I am forming certain perception on the business all the time.
I believe share price reflects the perception of the business, but the perception may or may not reflect the reality. So there is stop-loss, as well as exception to the stop-loss. Am I being clear, or ain't I clear?
Hi,
Do you reckon that the share price sometimes complicates your perception of the company?
:-)
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