Replies to post #148603 on Sino Agro Food Inc (fka SIAF)

[Redbull84]

Without regards to companies' fundamentals and their price, this formula is complete non-sense. It's not the great stocks that would make you a lot of money, it's what you pay for it.

Haha well, I hope no one is basing their investing decision on if a logo looks pretty or ugly.

Best way to destroy any future stock interests what so ever would be to recommend a newbie invest in only one company. Just saying, it usually doesn’t end well, maybe the first time if he’s lucky but not the second time.

And investing everything in a stock who trades on otc with a really bad (world record) management who let the stock drop 96%, even though the fundamentals looked pretty good 15x this share price, well allow me to laugh.
A risky stock is still risky even if it goes up 100% in two weeks, if the fundamentals change yes of course you can have it longer without selling a portion of your holdings, but you never know what’s around the corner in these stocks. Like we have a credit line, we got a mega farm contract, we got $25m or whatever this company have accomplished to do(non of those things turned out in a positive way), things can always go south as soon as it went north.

Of course good companies with a good management will cost more, ask any longtimers in here if they wish they would have bought any of the large P/E50+ S&P stocks or Siaf 8 years ago. Apple was expensive back then, but has a cheaper P/E now right?

The MA200 rule is not bad and would save a lot of headache if everyone used it, if you’re saying something else then you haven’t been investing long enough. It’s just to take a look at every crash, stock or market, if you happen to sell out if it goes below ma200 and then the next week goes over it so you will have to buy it back, have you lost anything then?

Without goals, what are you investing for? Goals are always a good way to keep it together in the long run and it feels good when you’re succeeding.

And yes, MA200 is lagging, and you could have sold earlier and just pivoting right? Hopefully it won’t turn up again, buy and sell on feeling or wait for the next Q report, that’s when you’re dead meat on the stock market. And I don’t think we should talk day trading with a newbie. Fundamentals change fast sometimes especially in companies like this, and information will always reach out to the market somehow.

Instead of commenting my reply, make yourself useful and share some of your experience and way to work, a lot of people work differently with the same outcome. Just keep in mind what you wish you have heard when you were a newbie. (I’m assuming you have some sort of track record yourself, in both bull and bear market)

Cheers

[Redbull84]

If you are going to diversify just for the sake of diversification, then that's not investing, that's gambling. It's better to put all your eggs in one basket, then watch that basket carefully. As long as you purchase the stock cheap enough below its intrinsic value.

I hope you now understand why it's not that good to have all of your eggs in one basket because that is gambling at least in these companies.