What is paranoid?
Paranoid means you are afraid of everything.
You are afraid of dying, losing out to competitor...etc.
Tom Peter, sum it best in his book..."In Search of Excellent." - "Only the Paranoid Survive." Do look upon the book, a classical book on management and marketing.
This philosophy is used by the greatest thinker of our time - Jack Welch, to bring General Electric founded by "Thomas Alva Edison" to a greater height, imagine GE as a mammoth "sun-setting" enterprise, still being able to chuck up, more than 10 percent growth a year under him.
In fact, Warren Buffet, the greatest investor ever alive, used such a philosophy. He has his rule of investment.
Buffet success rule:
Rule 1: Never lose money
Rule 2: If u disagree with me, refer again rule number 1.
Yup, I am a paranoid investor. So, I will have my rules for investing.
Investing means trading. So, I will have my buying and selling rules.
My buying rules or more accurately my buying indicator would be as follow. I need a lot of margin of safety.
So, my Buying Indicator is:
A) Fundamental:
1) I need a profitable company (the more the better) - preferably on the uptrend. "Dead meat attract no flies."
2) I need a debt-free company or preferably debt is less than 50 percent of assets.
3) A high dividend company - dividend preferably more than 3 percent.
4) No or negligible receivable, creditor or goodwill - Neither a borrower or lender.
5) A company with PE (Price Earning ratio) less than 5 or maximum of 10.
6) A company with P/BV (Price to Book Value ratio) less than 0.5.
B) Technical:
1) The stock needs to have increased in market strength (increase in price) and breath (increase in volume)
2) Just breakout from the base-line or long-term resistant.
Comments:
1) If there is such stock, buy at all means and wait.
2) Cos, short term, the stock market is a voting machine. Long Term, the stock market is a weighing machine - Warren Buffet.
3) Its the sitting that makes the money - Jesse Livermore.
So, my Selling Indicator is:
1) My reason of buying is not there.
2) Going for better investment.
Always go for "big movements" and not "small movements." As "small changes in trend" is too difficult to decipher.
Do, you know that the derivatives market is now so big - "500 trillions." If u really, really need to gamble. Go, gamble there. 4 American biggest bank, gamble 25 percent of their assets there. If, you can profit by just 1 percent of the derivatives market, it will make u trillion and probably, the richest man on earth.
In conclusion "Its the end that makes the means"
Good Luck! Amigo!
Yours Sincerely,
Dr Lion.
Paranoid means you are afraid of everything.
You are afraid of dying, losing out to competitor...etc.
Tom Peter, sum it best in his book..."In Search of Excellent." - "Only the Paranoid Survive." Do look upon the book, a classical book on management and marketing.
This philosophy is used by the greatest thinker of our time - Jack Welch, to bring General Electric founded by "Thomas Alva Edison" to a greater height, imagine GE as a mammoth "sun-setting" enterprise, still being able to chuck up, more than 10 percent growth a year under him.
In fact, Warren Buffet, the greatest investor ever alive, used such a philosophy. He has his rule of investment.
Buffet success rule:
Rule 1: Never lose money
Rule 2: If u disagree with me, refer again rule number 1.
Yup, I am a paranoid investor. So, I will have my rules for investing.
Investing means trading. So, I will have my buying and selling rules.
My buying rules or more accurately my buying indicator would be as follow. I need a lot of margin of safety.
So, my Buying Indicator is:
A) Fundamental:
1) I need a profitable company (the more the better) - preferably on the uptrend. "Dead meat attract no flies."
2) I need a debt-free company or preferably debt is less than 50 percent of assets.
3) A high dividend company - dividend preferably more than 3 percent.
4) No or negligible receivable, creditor or goodwill - Neither a borrower or lender.
5) A company with PE (Price Earning ratio) less than 5 or maximum of 10.
6) A company with P/BV (Price to Book Value ratio) less than 0.5.
B) Technical:
1) The stock needs to have increased in market strength (increase in price) and breath (increase in volume)
2) Just breakout from the base-line or long-term resistant.
Comments:
1) If there is such stock, buy at all means and wait.
2) Cos, short term, the stock market is a voting machine. Long Term, the stock market is a weighing machine - Warren Buffet.
3) Its the sitting that makes the money - Jesse Livermore.
So, my Selling Indicator is:
1) My reason of buying is not there.
2) Going for better investment.
Always go for "big movements" and not "small movements." As "small changes in trend" is too difficult to decipher.
Do, you know that the derivatives market is now so big - "500 trillions." If u really, really need to gamble. Go, gamble there. 4 American biggest bank, gamble 25 percent of their assets there. If, you can profit by just 1 percent of the derivatives market, it will make u trillion and probably, the richest man on earth.
In conclusion "Its the end that makes the means"
Good Luck! Amigo!
Yours Sincerely,
Dr Lion.
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