04 October 2011

Contrarian Thinking

Today is 4 October 2011, which is near to my birthday. I still remembered that many people were saying that October traditionally is not a good month, as there are several issues happened on October. By the way, I treat it as my lucky month because of my birthday falls into this month.

So what do I think about the Contrarian?

A contrarian must accept that he/she is different from other people, at least as compared to the majority. It means that you should do opposed to your fear and greed. If you are not greedy people, then only you can earn money from your investment. Similar to the fear, if you are a fearful person, then you can also earn money from your investment.

There are too many short term traders in the market, hope to earn a big bulk of money from the market. So to be a contrarian, you should be a long term investor, with the hope that to earn money when the market is the bear market instead of bull market.

How to do that?

Keep on doing the things that against your mind. Sometime, we will feel fearful when the stock price keeps on dropping, as we would have a lot of unrealized losses. If we cut loss at 50%, I do not think that it is a good idea, as I would think that it is a silly thing of just selling off your investment base on the sole reason that the stock price is dropping.

Always stay away from the market. The more rational you are, the higher chance you will get the profit from your investment. I still believe that, as long as you can purchase 1 dollar worth of asset by paying 50cents or less than that, you will sure earn the money in near future.

Above article is my own humble opinion to encourage myself to stay investing in this uncertainty.

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