Full quote – “I’ve found that when the market’s going down and you buy funds wisely, at some point in the future you will be happy. You won’t get there by reading ‘Now is the time to buy.”
Once again, Gurus like Peter Lynch have warned the public not to react to news when investing. Likewise for analyst reports, forecasts and stock recommendations will not bring you wealth by following them. One key issue is because of information dissemination. Even in our high speed information age, there is still a time lag between the news is first known and when it comes to you. Retail investors always suffer if they react to news. They will be the last group of investors to enter the market and no one fueling the stock run with further investment, its price starts to fall.
Most people know that I must buy low and sell high. But why many do not buy when market crashes? Instead they buy just before or during the high and join the crash party? It is human psychology in play! When the market is on a bull run, there is widespread optimism shown in news, magazines, TV, etc. Majority have their greed triggered, especially when they hear that their friends have made money easily in the market. How can I lose to the rest? I will win even more money in stocks since I am ‘smarter’. By the time the market crash, the ‘smarter’ person will not have enough money to purchase good surviving companies at discounted prices.
You may also like:
- Warren Buffett – “I’d be a bum on the street with a tin cup if the markets were always efficient.”
- S&P500 Index Funds available in Singapore
- Why investing in mutual funds or unit trusts may not be a good idea?
- Why share prices fluctuate?
Discover the Secrets of Singapore Trading Gurus!
Interviews with Singapore stocks, forex, futures and options traders and trainers! This book is written for you:
- learn how professionals trade
- discover their strategies, money management and approach to the markets
- understand their stories and motivation behind trading
- know your trainers before attending their courses
