Food For Thoughts

Food For Thoughts on Stock Market / 股市真言

Compilation of some food for thoughts on stock markets. 

22. Stock market is the Pandora's box to economy.  To understand the rationale behind the irrational market is like opening up the Pandora's box.

21. There are a thousand and one reasons for market to move up but only one reason for it to crash -- Fear.

20.  Bull market is for collecting returns, recession is the time for one to really spend big in stock market.

19.  The good thing about fundamental or value investing is time is on your side.

18.  Do not follow the pace of the market but make it follows your pace

17.  One need patience to buy after that need patience to wait to sell and meanwhile ignore the noise

16. To heal an economy is by self correction and not any other artificial means

15.  For the fundamentally sound stocks, as the price get lower, the risk reduces more.

14. Analysis is to analyze the pros and cons, ups and downs, goods and bads and not just one sided view

13.  When there is crisis, there will be opportunity

12. Fishing the bottom is an art and not catching a falling knife if you know what you are doing

11. Mental strength, confidence and patience are the keys in winning in stock market

10. Investment is the one that get you the wealth, trading is just to build up capital

9.  Never ask how much can I profit when bought but rather how much can I afford to lose

8.  Stock market is all about risk, calculated risk

7. Investment is about valuation, trading is about strategy

6. Understand the rationale behind the irrational of the market

5. Read the market and not let the market read you

4. Win the psychological part of yourself, half the battle won

3. Market always over-react be it good or bad news, one should just ignore those noise and opportunity will present itself to you

2. To have expectation is good but over expectation will kill. To be safe always under expect

1. It takes a drop of 20% to realize it is a bear market BUT it will take a missing of 40% profit chance to conclude the worst is over for the market





1。知己知彼,百战不殆。 对己之格性要认识,对股之特征也要认识,方可百战百胜。