Tuesday, May 27, 2008

Attitude/behaviour of Investment of shares

In the shares market, a lot of people use a difference method to buy or sell shares. In my life of experience, they can category as: -

a) Prudent type
b) Aggressive type
c) Moderate type
d) Optimistic type
e) Pessimistic type
f) Flexible type

The difference type of investment attitude brings a difference result to them. If you want me to category myself, I admitted I am “flexible type”. In my point of view, any type of attitude of investment does not bring any bad effect. But if you want to be a good investor, every type of people should be cope with the sentiment of market instead of against it.

The unpredictable movement of market brings heavy impact to any type of attitude. Example, if your are aggressive type and buying shares during shares market move at side way. It can double up your lose because usually aggressive type investor likes to average the stock at every level of price. In his/her mind, the shares will come back at anytime. Finally, he/she’s saving fully utilised at this period of time. While market going down further, he/she will lose the best opportunity of buying lower price to average.

In the market you may hard to seen any “flexibility type” of investment attitude. Because this type of people usually has own talent to read and understand the movement of shares.

The above does not mean that I want to introduce myself is better than others people. In fact, I am classified myself is a fresh fish in the market. I am still learning although I was trading in the market more than 20 years.

Flexible type investor is not easy survived in the market. Usually you will blame by people. Especially your are pointed the particular share price will registered lower at certain period of time.

At last, I could advise that “Any people who invest in the market must well know the basic theory of market. Because the basic theory of market will guide you better direction. The important step is you must not try to control the market price direction by your own power. It will bring a hazard and bad dream in your life forever”

Dated 27/5/200

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