Investment, Trading, Speculation & Gambling
most amateur traders often forgot before they are entering the investment markets, do they really know what they are investing, and the background of each investment instrument. They were often times swayed and carried away by the notion of investment without knowing the depth of the path they are taking. For instance, the most commonly known investment market is stock market, how does one investor arrive to which company to buy, if so, at what price, then how long it is going to hold.
It can be deceptively simple to these questions, because every investor wishes they could purchase a stock and then the price spikes in the next day. What if that does not happen? What if, worse, it goes the other way round, it falls sharply. Most investors would be gripped by fear and sell their stocks at an irrational price, or hold their stocks blinded by greed or false hope because of ignoring the basic signs that are flashing to them.
Here, we believe, for as long as we can maintain a centred attitude and rational behaviour towards investment markets, we will sail smoothly and safely in the vast ocean of investments.
Stock Market Methodology
Fundmental analysis, technical analysis and listening to hearsay, have their places in investment markets. we conduct independent research to strike a balance to all these influencing forces of markets. the philosophy we worship is, it does not really matter what sort of observation or analysis one has to offer, as long as a consistent and maximum return can be achieved legally, we will be more than happy to adapt ourselves to it. after all, it is all about maximum return we are seeking.
how to put a value on something? that should be a tough question because everyone has different value judgement calibrated by their own needs, and sometimes people make irrational decisions too. as far as money is concerned, we have to put a value or price for two sides to agree upon, otherwise a deal cannot proceed further. Therefore, Valuation is particularly important in Merger & acquisition process, practical businessmen prefer to see profits, capable risk takers see future potential, monopolists and typhoons name a price to buy the threatening and emerging business out of the market; or they will use the same amount of money offered to research and become the direct competitor, and also the book followers see net assets to justify the value of corporate entity. Above all these, law of demand and supply always holds true, that means many bidders for the same business will most definitely drive up the selling price. Having that in mind makes negotiation process feels natural and neutral, because we know one man's trash is another man's treasure.