Investment from a Doctor's Perspectives

 If you give a Doctor a technical chart, he would said it is an ECG reading. That is why Doctors is known as the worse investor. 

So, if a Doctor would diagnose the health of the stock market. He would have to see the symptoms and signs of the stock market.

Symptoms is what the patient's complain and signs is what the Doctor illicit or found out. 

The symptoms would be world and local news whether it is an act of God, big brothers' action or corporate announcement of individual stock as well as news and actions taken by competitive and complementary competitors in the industry. 

The sign would be volume-price action at international macro and local macro as well as microeconomics of individual  stock or commodity.

So, if the symptoms and sign shows uptrend or bull. We should increase our investment and buy high, sell higher. 

If they show downtrend or bearish, we should decrease our investment and sell low, buy lower. 

Both ways we make as long as we preserve our capital and winning and let it compounded.

Just remember, if we lose and our portfolio enter ICU or casualty ward just stop digging and remember to live and fight another day at another more favorable set of economic conditions. 

Stock market is the world's most cruel game. The stock market does not care whether you make or lose as the stock market have a life of it's own. 

Stock market is the fastest route to untold richest or the poor coop house as millions were won or lose in the stock market in the past and it will exist for many more years as long as capitalism exist. 

Moral of the story: Faith favored those who are prepare.

In God we trust, 

Dr. Lion

A fictional memoirs of a Day Trader

 The following is a fictional story from the memoirs of a day trader in bursa malaysia. 

Let us go back to the year 1996. The stock market boom in bursa with the second board counter reaching new high. We had stock such as Repco and Hwatai that reach 200  and 180 ringgit per share respectively. 

Everyone was joyous, cheerful and many millionaire was make overnight.

Alas, good time never last forever. In 1998, repco was last traded at 2 ringgit and Hwa Tai drop to 80 cents per share. If the king of stock drop up to 98 percent of its value what about the rest of the stock in second board?

There is total wipeout for stock participants and many speculator and pools suffered from bankruptcy. 

If you think this is the worse? Forward another 10 years to 2008. Share such as mkland drop from 4 ringgit to 10 cents. Still another 98 percent wipeout.

Is this the worse? No. Forward to 2020 during the covid crisis in March 2020, alot of mesdaq counter such as Fintech and Asiaply drop from 50 cents to 1 cents and share such as Puncak drop from 4 ringgit to 10 cents. Nearly another 98 percent wipeout.

So, how can we withstand a 98 percent wipeout every decade?

A 98 percent wipeout means a million invested in the stock market will be worth only twenty thousands. 

Share market is the fastest way to be millionaire or billionaire. However, it is a double edge sword, either you become rich or end in the poor coop house especially those who rely on tips. The end game for a failed speculator is either bankruptcy or suicide. 

Just ask any stock investor in 1998s, 2008s or 2020s, most of them would have retire from the stock market. 

Speculation in the stock market is akin to gambling and speculation or gambling is never safe or foolproof. 

Every once or then there is a killer wave that flush out or dried up every drop of blood that the punters have. If you want to see flushing, you can try trading in the forex and derivatives market. 

Honestly, if you take care of your losses your winning will take care of itself. 

I hope to be proven wrong, however history tend to repeat itself. Therefore, it is better to be safe than sorry when we speculate with our hard earn money.

Moral of the story: Gambling or Speculating is never safe as it is always better to be ten years earlier than one day late preparing our ark in this uncertain times. 

May your trading life be producrive. 

God bless you, 

Dr. Lion.