Making the right call vs Cracking the Code

Making the right call and cracking the code seem awfully similar but are vastly different. I doubt I will ever crack the code when it comes to FA simply because each company is different and I can't adopt a blanket 123 to decide which company to buy. Thus I have been trying to make the right call instead.

What exactly is the right call, I ask myself this same question everyday. My views may differ from the rest or may be in consensus but that does not give me any indication of whether my call is the right one. When faced with companies to choose from, I can either give a buy, neutral or never would I touch this stock decision and that's the call I make on a daily basis.

The strength of my conviction is what anchors me but even then I have doubts, being the mere mortal that I am. Especially when ACCICB was at my ear, telling me how the prices have not moved for my counters. But time has proven that if I had stayed true to my course, I would have reached or exceeded my target buying or selling price much much faster than expected.

In the midst of plunging prices, I refused to partake and average down. This is despite ACCICB telling me to buy at certain levels ever since the down trend started. When market closed, it was lower than it started. Many days of new lows were set but still I wait.

Results are going to be out next week and still I remain zen. It seems that there was a global sell down in the sector but still it seems for now, that the counter has rebounded or has it really... I'm not yet convinced. Even ACCICB can't seem to decide TA wise whether the rebound is temporary or otherwise. Fast forward, results are out but then the market seems to be undecided on the counter so it has been going up and down and sideways... Basically all over the place.

Sometimes I actually discourage ACCICB from buying the same counters as me! That's because my picks usually take time before the stock price rises and patience is not his strong suit. Many times we have the same counters bought at different prices and even when the price drop below our buying price, I remained calm but he's like OMG, WTF etc which I do not appreciate. If I had more liquid cash, I would have average down but for a stock with low liquidity, I would rather put my $$$ at work elsewhere. 

On the other hand, ACCICB has been trying to crack the code TA wise and while he's rather good, I wouldn't say he has cracked the code. He seems to have discovered new signals, indicators, chart patterns etc...after all the best time for learning is indeed during market volatility. He has also ditched some indicators that seem to be relevant for investing but not so for trading. I would say he's at the experimentation stage and it is quite amazing to look back at the journey he has taken so far. 

Cracking the code seems to be just as difficult a task from my observations. Every day is a learning day with missed opportunities and hopefully a step closer to cracking the code.

Related articles: Brain vs Eye
                           An equation to rule it all
                           The importance of having a good buddy

Comments

  1. Joyce,

    You remind me of the Million Dollar Traders where you are that cool and calm lady whom the Hedge Fund wishes to recruit after the TV series ;)

    I guess you and ACCIB will have to find out for yourselves whether you both invest/trade better as a team (you complement each other); or decide to invest/trade your own individual books (no copying!) since you both are 2 separate creatures ;)

    ReplyDelete
    Replies
    1. You are too kind SMOL! We do have different books that overlaps at times and no I don't copy or peek! ;P

      Delete
    2. Hi it was nice reading your blog.

      I am also an investor too , but started blogging recently.
      Do check out my link:
      http://whatsbehindthenumbers.blogspot.sg.

      Hope we can learn from each other though :)

      Oh and btw, shall we link up?

      Regards,

      Delete
    3. Thanks for dropping by Eye of the Storm! That's a cool nick! Yup I've linked you up and we are all learners here... Mr Market is always evolving so shall we!

      Delete
  2. One is good at making the right call
    And the other is good at cracking the code

    When you combine these two strengths then you will get a formidable union!

    It is important of having a good buddy, remember?

    ReplyDelete
    Replies
    1. Yup my buddy is indeed a good one ;)

      Delete

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