Nursery, i have given you a thumbs up as your common sense...

Nursery, i have given you a thumbs up as your common sense little Q & A is what's needed when evaluating a business.End of the day cash profits are the real profits and not the pencil book write downs which will eventually be write ups as the cycle turns.

People can sit here all day and pointing out negatives about a company and if u go through a "few" of the top s&p/asx 100 listed companies then you'll see that a "Few" have very messy balance sheets and are already fully or nearly fully priced in with very minimum or snail paced returns for investors in the medium to long term and this might be good to a very very conservative investor but if "Patient" then cer has a lot more potential for multiple gains in sp and imho you'll witness the magic in the years to come.As far as i'm concerned cer has alot of positives far outweighing the negatives and these have been discussed over the last 10-12 months...

I guess if people are focusing on more negative factors than positives then probably best they sell their position and move on. Good to have a balanced view on a particular investment but if negatives are focused on too much then
this can be a recipe for disaster and this will block out a lot of positives of any listed company when having a medium - longer term view as well as affecting your own personal trading style.

Ok the below Example ...Is My bread and butter -

The psychological aspect...

When we trade with fear, we can easily block things out.For instance, if we are in a trade and the market is offering us information that would indicate we are right or information that would indicate we are wrong, what information do u think we will focus on?...

A winning trade will be handled in the opposite way by a fearful trader. His fear of losing will cause him/her to focus on what the market can take away from him in his current winning trade.In a losing trade,the fearful trader/investor will focus on only the information that supports his current position and ignore other factors that may not agree with his opinion.

He will ignore any information that states the market has potential to continue in a profitable direction.He will be so focused on information that will confirm his fears of the market taking the profits away,that he will exit the trade early regardless of the profit potential left in the trade.He finds it very easy to agonize over why he couldn't stay in the trade a little longer.He certainly doesn't realize that it was his fear of losing that caused him to get out of the trade and leave the money on the table.

A few methods i use for myself are as follows:

1. Clear frame of mind>> I use this technique to make rational decisions.

2. I stop seeing my mistakes as failures and actually learn to use my mistakes as valuable feedback which guides me to my personal goals in life.

And most of all

3. I try to feel a sense of overall satisfaction,fulfillment and peace as i'm bringing the best of myself each day.


"I have a longer term view on cer and haven't changed my sentiment from the start"....Will continue to hold as i look beyond the current...


cheers