It was a fruitful session last week, as I conducted a 1-1 session with a passionate lady. I used Ezion as a classic example to show her why the stock was bearish since the beginning of this year when it was trading at 0.50+. Today the stock just tumbled to a low of 0.295, without any form of major support. A once glory blue chip at the peak 1.53+ to now a penny stock, it tells me that nothing is safe in the stock market and nothing will always rise forever. Life is the same, there are ups and there are downs. The most important thing to remember is during your peak period, capitalize on it as much as possible and when you feel that you have reached your pinnacle, step down and let the younger generation take over.
A lot of people know me as a stock trader but I bet none knew that I used to be a pauper too. Over the years, I have learnt a lot of real life examples from the stock market. The market is like my teacher and whenever I hit some roadblocks, it will teach me a lesson about life and trading. For example, most students when they have a question about trading/stocks, they would seek for my opinion and I would normally help them out. However in my situation, when I have doubts or questions about certain stocks, I have nobody to ask but the teacher itself. When I trade and lost money, I know my answer from the market, but when I made $ from it, I know my doubt was correct, that's how I learnt over the years, self independence, self reliance.
From there, I also learnt that stocks will always have glory moments and then there will be a shift of paradigm where the stock suffered some profit taking first followed by more heavy sell down. Nothing is indispensable like what most people thought the blue chips were all mighty. I learnt and understand that to succeed in life be it trading or other business, one has to adapt to changes because the world is changing very fast with a very fast pace. If you cannot move with changes, you will be obsolete in no matter of time. In the stock market perspective, what was once considered a heavy weight will soon one day be taken over by other growth stocks. In the next millennium, it's won't be the blue chips that will dominate anymore but rather small fundamentally good stocks that will have rooms to growth. Compared Keppel Corp, CityDev, Yangzijiang etc to the now Acromec, MM2 and Jumbo, you will see for yourself who is rising and who is declining.
Luckily for me, I am not a stubborn person in the stock market and I embrace adaptation and changes. That's my secret to success and more importantly, I found a way to look out for stocks that can germinate and then grow. To me blue chips is for trading purposes and not for buy and hold type. I would rather park my funds into good growth stocks but the problem is growth stocks sometimes need to be patient on waiting. I had found one growth stocks and will be hoping onto the bandwagon soon, how about you?
Ronald K - A Game Changer