BRN 2.38% 20.5¢ brainchip holdings ltd

Earnest Projections and Advice, page-116

  1. gga
    1,125 Posts.
    Short reply: Nope. (sorry, I know that's not what you wanted to hear )

    Long reply: I dunno about nihilism but this is a minefield to address. It's like asking, "Hey, can you tell me how to do that Swirling Tornado move so that I can pleasure my girlfriend the same way when we're having sex?".

    [NB. From here on, everything is obviously IMHO]

    I don't think that's the correct question to ask, or rather, I don't think that's the fully correct question to ask. Most people think a stoploss is just a function of the parameters of a stock* but I think it's a a function of both the parameters of a stock AND your reward:risk profile - how much of an appetite for gains do you have? How much risk are you willing to tolerate?
    * one could argue, technically it is. But human beings are not robots. Strive to be robotic/mechanical in your trading but until then, don't beat yourself up about it.

    Everybody wants to buy in at the absolute lowest and sell at the absolute highest but NOBODY does that unless you're an insider trader, a Fat Bloater, a martis and/or a BS artist! That's why I suggested The Checklist Manifesto (too general a book, I now realise) in my first post: it's advisable to have a trading plan before you ever put down your first dollar in the market. Once YOUR money is involved, all sorts of emotions (mostly base) will come flooding in to muddy the waters - that's why most people who make a killing paper-trading* are shell-shocked when they get slaughtered in the real market. A trading plan/checklist acts as an anchor to steady you when you are all at sea - which, by the various options you've presented above, I humbly suggest you currently are ;-).
    * Trivia: Did you know that Heath Ledger's ex-girlfriend, actress Michelle Williams, won a trading championship when she was 17yo, with >1,000% profit?

    I can't remember verbatim so I'm gonna have to paraphrase, "Don't worry about where the price is going, worry about what you're going to do when it gets there" - Dennis Eckhardt, the other half of the leadership team I'd mentioned in the Turtle Traders. Speaking of Eckhardt, found a blog post that supposedly has a list of his quotes: I don't agree with all the quotes nor can I verify all of them (a large part of them I do remember reading).
    https://whatheheckaboom.wordpress.c...t-mechanical-trend-following-systems-trading/

    There's also the issue of categories. On stocks with real sales and earnings (this is not a slight on AZK), it is far easier to set a stoploss because you have a fair idea of true/intrinsic value. Eg. I have held CSL for a little over 3 years without it once hitting my trailing stoploss as it chugs along. On bluesky stocks such as PSY, CVT, WRR, AZK, I would like to say I know where true value lies but I'd be lying - far better minds than mine would know - hence, why I'm 'looser' with my stops with AZK.

    Side-issue: Testicular Fortitude aka Bottom-Picking Masochist Idiot. I can tolerate losses of up to 50% (and sometimes, beyond! REALLY not recommended), which was borne out when my F.A. scans picked up SHV in the later half of 2012, and bought at what later turned out to be the highest point, suffered for a year, it's now 4 and half times what I paid for it 2 and half years ago. Not great, but not bad for an F.A. pick.
    Huh? Why dis here? Oh yeah...ties in with the first point. Um, think it's time to stop the reply.
    "The graveyards of Wall Street are littered with the bodies of men who were right, but right too early" - Edwin LeFevre (paraphrase)



    Buddha - (truncated quote) "Question everything, even me" (but don't be a douchebag about it -gga)

    TL;DR - blah.. blah.. blah.. Didn't answer question, sorry!
 
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