When buying stocks, if your buying decisions are based
on"insiders' information or rumours" and not sound analysis, then you are
gambling. Many investors enter the market when stocks prices are high (lacking
of confidence to enter beforehand when prices were low). Once the stocks market
crash, they tend to sell out their shares out of fear and pessimism, swearing
to "chop off their fingers" and never enter the stocks market again. If such
situation happens, all their previous gains may be wiped out and suffered a
loss.
Investing is an art and highly emotional and subjective.
Subjectivity is largely controlled by our emotions. There are times when we are
optimistic or pessimistic. If we are unable to control our emotional weakness,
we are unlikely to become successful investors.
To be successful, you must first understand yourself, in
particular your emotions and the degree of pressure you can tolerate.
The investors should also analyse the country's economic
prospects together with the earnings outlook of the major listed companies.
It is imperative that you like Mathematics as the sound
mathematical knowledge plays a key role in investment.
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