Should I go against the market?
Here’s an interesting article from The Star. It’s worth a read.
Should I go against the market?
Some investors who managed to catch stocks at cheaper prices may have been selling most of their holdings lately. Unfortunately, the market continues to trade higher than previous selling prices. In such situation, the worst mistake for some retail investors is to abandon their contrarian strategies and start buying back the shares that they disposed off earlier at even higher prices.
I still remember one of Warren Buffett’s favorite quotes is something like “to be fearful when others are not, and to be brave when others are fearful”. In other words, when others are panicking and sell, the price of the stocks will take a plunge. That is the good time for long term investors to acquire some stocks. And when others are franctically buying in order to jump on the so-called ‘wave’, it’s time to sell before the bubble bursts.
But as you’ve read in the article, this is not always the case and it CAN be disastrous if you don’t have a proper plan. I believe the keyword here is patience. Never ever panic. Remember that in stock market, missed opportunities are nothing special. Whatever that goes up will eventually come down.
Conclusion, go against the market and also the main population (of the investors) if you know what you are doing. Don’t ever become impatient because being impatient can be disastrous when investing in stock market. But if you are truly an investor (and not speculator), buy low on the stocks that you really interested to invest in. Just be prepared to hold on to your stocks for at least 3 to 5 years.
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