Brain vs Eye

ACCICB and I each have our own roles to play...he being the Eye and I being the Brain. Basically I would research on the stocks based on FA and he would decide on entry and exit based on TA. We also played around a little bit...with him using his brain or him using his brain + eye and the results are a mixed bag.

I haven't used my eye much so I wouldn't know how well that would work out over the long term. So far it seems to be average and I seriously need to hone my eye but I wonder whether I would be confused or whether I would be making an informed decision.

When he was messing around with the various combinations, I was busy using my brain since there's lots to cover just for one stock. Plus, I was also playing around with my own portfolio so that keeps me real busy. 

He was fretting over how he can't seem to use his Brain + Eye since it keeps sending him conflicting messages. He may buy using Brain but sell using Eye and what not, so there were quite a lot of combinations out there. I told him to note down all his trades, paper or otherwise so that we have some data to crunch on what really works for us.

Funnily, he tells me that his brain works for stocks in certain industries like tech, gaming and the like... Basically what I term as man stocks that rocks. I am a ok with such industries and can give input but hey, if he can do it, I'm not going to stop him.

The funny thing about the Eye is that it is not 100% foolproof... chart patterns continue to spring new variations, signals can be a little muddled etc so what I do for my portfolio is a rudimentary decision on entry and exit price based on observing the prices of the counters on my watchlist.

I find it to be accurate at times and the funny thing is I'm not at all upset if it bounces up or it doesn't go below a certain level. I would call it my own valuation of the stock so I have a clear entry and exit price in mind. It is amazing how patient and zen I've become ever since I started down this path. It's like Mr Market is toying with you everyday and after a while, you just have to stay strong and stop doubting yourself.

Recently, I bought a counter which tanked after my purchase and as liquidity is rather low, I am still waiting for it to recover. There have been signs of life since last month and today it is got nearer to my breakeven price. ACCICB had long bought and sold this counter, made some $$$ and when I told him the recovery of this counter, he immediately asked me whether he should buy some! My answer was: You want to buy, you should have bought when it was 4% lower rather than today!

It's funny how when the counter doesn't move much, it doesn't make us desire it... but when it starts to come to life, we too, seem to be attracted to it and suddenly want to be part of it.

Comments

  1. Singapore Man of LeisureApril 29, 2015 at 8:01 AM

    Momentum.

    Volatility.

    ReplyDelete
    Replies
    1. Joyce LeongApril 29, 2015 at 10:33 AM

      Wah Wah SMOL, now you start to give one word comment! ACCICB loves momentum but not so much volatility I think ;p

      Delete

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