how can little investors compete in good faith, page-5

afternoon,

imo bots and shorts have created a new exciting investment arena/climate for small investors - one that small investors can take huge advantage from.

You just have to get used to the new game rules - they have in fact made if easy for us if you wish to change the way you play the game ------------ make it work for you - they are making it easy.

How? easy -

We are now in the investment land of crisis, both real and imaginary (ie. earthquakes and flash crashes)- we are in the land of the bots - unemotional things that have two roles in life - either to drive the market up or down, they take a margin or build a position - nothing else. And guess what - occasionally they stuff up big time.

Do they manipulate the market - they sure try - doesn't matter if it is against the rules or not - a blind man on a galloper can see --------- use it to your advantage.

The new game -

Do solid, well reasoned research - it was always important - but it is the real key now to making a fortune and an easy life. ie. Pick 'quality targets'. The don't have to be giants, they have to be solid.

Think like an investor.

CASH UP - get over the old thinking that cash is a wasted opportunity. Cash is now a big part of the puzzle - cash and patience.

1. Have your targets ready - companies that are solid (not too many - just a few good ones).
2. Hold your cash
3. Have orders in ALL the time - at values that you will smile at if they are filled (yes you can place orders way below market - you mightn't be able to do it on the net - but you can do it on the phone - TELL the operator they can override the machine - if they don't know how - get them to speak to their supervisor).
4.WAIT, wait, wait, wait patiently (wait for a flash crash or the next crisis) you will get a hit several times a year at present.
5.Execute your 'planned' hold or sell strategy on recovery.
Things always recover for good companies - make sure you stick to your strategy now you own those shares at a great price - you are in for what is now a tremendous dividend stream or you wish to sell part of or all the position on recovery and happily pay the cgt -- WORK THIS OUT BEFOREHAND.


What can fail ---------

1. You - impatient mainly.
2. You - poor research - LOOK at the detail in the companies
3. You - you think this is boring and want fast action.
4. The market not recovering - hmmm, look at your charts of good companies. Look at the history of disasters. Look at the silly prices people let go of shares for in crisis - baby out with the bathwater - chances of market failure are very small if executed properly.

Why will it succeed? because this is a new game and the supposed smartness have just written the rules - for a new game with old thinking in it - but if you change and USE the bots, shorts etc. instead of thinking they are your enemy - think of them doing you favors - you can either work with them or against them -- against, they will crush you - with - it will be the easiest money you can make.

Be patient and think. I know this is a far cry from the full on adrenalin laden trading world - but work it out - do you want to be a fast sleep deprived trader or do you want to be just wealthy? - fast trader = usually lose, smart patient investor = wealth -- usually.

I hope this helps

Pinto