News 
Market Data 
Discover
Replies to post #175428 on On4 Communications Inc (ONCI)
05/19/18 4:21 PM
05/19/18 4:38 PM
05/19/18 5:12 PM
Quote:
Here are a few questions that many traders ask themselves from time to time:
Why do I sometimes find myself with a paltry position in a stock that I've been watching carefully, and then chasing it as it runs, only to sell far prematurely with a small fraction of the gains that I could have made?
Why do I sometimes - maybe even frequently - find myself buying high and selling low?
Why can I never get the confidence to accumulate a decent position in undervalued stocks?
Why do I frequently/always sell a good performing stock way too soon (maybe for fear that I'll lose my profit on a 20%, 50% or 200% gain)? And yet, sometimes I don't sell those hyped-up momo plays fast enough.
99% of the answer, IMO, is that these traders do not do their own DD work, and have little understanding of the value of the stock they're "playing."
Now here comes the investor - who, by the way, is also a trader. Difference is, the investor, wanting to buy undervalued stocks, learns 2 things: 1) how to peruse the financials for the basics, understanding what simple things to look for and to use in combination with 2) how to value a stock.
That's all it takes, just those two things. And anyone who can put together a household budget - and balance it - knows enough to comprehend the basics of the income statement, balance sheet and statement of cash flows in the financial report of a public company.
Why does the investor want to buy undervalued stocks? Well, isn't that obvious? Of course it's so they can buy low and, eventually, sell high.
So... exactly how is it that many investor-wanabe traders expect they can buy low and sell high - and have any hope at all of achieving anywhere near the gain potential of their trade/investment - without knowing the value of their stock?
05/19/18 7:07 PM
