Learn Investing Secrets

It is the same with other reputable market gurus. It should be the same with these market gurus' predictions of market crashes. By capitalizing on the strengths, one can indeed enjoy the benefits.

The concluding part 2 will provide an outline of fundamental analysis, technical analysis plus some tips on successful investing.

You may freely reprint this article provided you publish it in its entirety, including the author's bio and activating the link to the URL below.

Over 80% of all individual investors lose money in any given span of ten years. This figure is likely to be higher, given most people’s reluctance to reveal their losses. This bring accusation provides a far-extending outline of this financial landscape. It reflects the author’s personal views as an individual investor and co-author of a stock harmonization software with the experiences learned from the University of H.K. (hard knocks). Do not consider this matter as any form of financial advice. Financial notice are leisured from licensed individuals and companies as required by law in your respective country.

Investment is a statistics game. You win sometimes and you lose most of the time. To stay ahead, all you have to do is to make sure that your gains are more than your losses. More importantly, how to limit losses and reduce the mistakes will be crucial in successful investing.

Take a typical fund manager. Out of ten positions, the fund manager may only win 40% of the time. Say, this manager makes an middle-class return of 20% for each position. The rest are mistakes, but this manager disguised the losses at 10% each. Do the simple math, and lo and behold, this manager is eclipsing with gains. This is a simple example – professional fund managers use complex variations of this simple theme.

Another example is the venture capitalist. Say, out of ten ventures, only one succeeded. The successful venture could yield returns of 2000%, perhaps more. The other nine ventures failed miserably and these investments are written off. Using this model, the venture rugged individualist is still ahead.

Headlines, the media, advertisement hype. Most of us are familiar with this typical headline: “Whiz kid makes stock picks that outperform the market than most fund managers”. When such stories becomes headline news on the popular media, it is likely that they show up towards the end of a great bull market. Stories like these typify the misconception that anyone can pick stocks at random and win all the time.

Perhaps, a more tantalizing spot announcement with “How I make 2600% (annualized) on a winning trade” may make us interested. Any seasoned investor will be able to provide a handful of trades that has spectacular performance like 50% in a week. Annualize this and it works out to be 2600% a year. However such trades are few. There is no one in the world that has such a method or strategy that is consistent and sustainable.

It is prudent to treat media reports with a critical mind and skepticism. Rationalizing the possible reasons on why the story appears may provide some useful and not so obvious insights. For example, if you have a large position in a stock, then obviously you will only sing praises on why it will outperform its peers to encourage more hire purchase momentum. The instigator remembers an clinical psychologist private statement: “I can write fantastic merits within reach a stock, conversely I can also write some damning things as well”.

Market gurus, financial astrology, divination. Joseph Granville, a market technician, started his newsletter (Gransville Market Letter) in 1963 and is still going strong at age 80+. He was just right to predict the market decline in 1976 but was wrong in 1982 and 1995. Given the statistical nature of investing, he had his successful calls and his fair share of blunders as well. The redeeming feature of this man must be his willingness to do penance for his mistakes.

Why do people continue to subscribe to his newsletter? This origin suspects that his loyal customers are those who can form their own opinions and views on the market but, they are receptive to a different perspective or viewpoint they may have missed in their own analyzes.

It is the same with other reputable market gurus. It seemed the media and the public are intolerant of their success rates as contemporary not good enough. The forecasts of these market gurus should be treated like a tsunami early warning system. Nine times out of ten, the warning turns out to be false and people take on it and go own with their normal lives. Every warning is taken seriously and the costs of taking precautions are minimal. When a warning turns out to be accurate, it will save lives. It should be the same with these market gurus’ predictions of market crashes. Investors just have to prepare themselves as they would with an impending tsunami warning.

After seeing a BBC program on Membrane theory, 11-dimensional worlds and parallel universes, financial astrology, feng-shui and other methods of divination may have some merit. This framer encourages investors to have open-minds and more importantly, understand the strengths and weaknesses of any method. By capitalizing on the strengths, one can indeed enjoy the benefits.

The concluding part 2 will provide an outline of fundamental analysis, technical town meeting plus some tips on successful investing.

You may freely reprint this bring charges provided you publish it in its entirety, including the author’s bio and exhilarating the link to the URL below.

Since my “Buy Japan” post I’ve been getting lots of emails asking exactly which Japanese stocks are worth buying.

The simple answer is net-nets.

Net-nets are stocks selling for less than the value of their current assets – cash, receivables, and inventory – minus all liabilities. Basically, they’re stocks selling for less than their liquidation value.

I’ve put together a list of 15 of Japan’s best net-nets. These are small, unknown, super cheap stocks.

I ranked these 15 stocks on 5 key criteria:

1. Size
2. Sales Growth
3. Profit Margin Variation
4. EV/EBIT
5. Price/NCAV

By combining those 5 criteria, I was able to sort these 15 Japanese net-nets from most attractive to least attractive. In other words, I was able to make a list of 15 Japanese net-nets with the best ideas up top and the worst ideas at the bottom.

This report is perfect for someone looking to buy a basket of 5, 10, or even 15 Japanese net-nets.

Or for anyone who would like to start researching Japanese net-nets but has no idea where to start.

The price of the report is $100.

That’s about $7 per stock.

If you click the “Buy Now” button below you can pay using PayPal. Once you’ve paid, you’ll be taken to the page where you can download the report as a PDF.

Talk to Geoff About Japanese Net-Nets

 

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