Saturday, January 16, 2010

Buy 75 sen ... Sell 80 sen

I analyse some stock, and value it at RM 1
I buy at 75 sen yesterday and sell it at 80 sen today.

I analyse some stock, and value it at 50 sen
I buy at 75 sen yesterday and sell it at 80 sen today.

I don't analyse the stock, don't know it value.
I buy at 75 sen yesterday and sell it at 80 sen today.

One thing for certain, I make 5 sen in one day.
But some people could not tell the different between the 3 scenario.
Including me ?
*

3 comments:

  1. It depends on the timing.
    During good times, every stock you bought can possibly brings you profit in a Short Run because the market is very volatile.

    In a Long Run, the results are different. Good valued Stocks tend to appreciate while over valued stocks tend to depreciate.

    This is Reality. You can never see a bankrupt company operating its business in a long run but you can always see a viable and profitable company lasts and lasts for decades.

    ReplyDelete
  2. Quote : "It depends on the timing.
    During good times, every stock you bought can possibly brings you profit in a Short Run because the market is very volatile."
    .
    So call "good times" could only be claimed retro-spectively. How do we know when is the "good times" beforehand ? Only after we see many stocks "bad and good" go up in prices, and only then we could claimed it "was" a good times.
    .
    Your second and third statement .. are fair enough.

    ReplyDelete
  3. Yang pertama ni, is the result u wanted mah.... the 2nd and the third one, are the odds you are dreaming of...

    kih kih kih....now im a follower

    ReplyDelete