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Let's talk about mister market!

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PerCapita is an asset management company specializing in holdings, other consultancy in the field of business management, other business services, brokerage in general goods range and brokerage specialized in other goods.

PerCa​pita is een vermogensbeheer vennootschap die gespecialiseerd is in holdings, overige adviesbureau op het gebied van bedrijfsbeheer, overige zakelijke dienstverlening, handelsbemiddeling in goederen algemeen assortiment en handelsbemiddeling gespecialiseerd in andere goederen.

PerCapita est une société de gestion d'actifs spécialisée dans les holdings, autres conseils dans le domaine de la gestion d'entreprise, d'autres services aux entreprises, la médiation commerciale dans la gamme de biens généraux et la médiation commerciale spécialisée dans d'autres biens.

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What Is Mr. Market?

Used as an allegory, Mr. Market is an imaginary investor devised by Benjamin Graham and introduced in his 1949 book, The Intelligent Investor.

 

 In the book, Mr. Market is a hypothetical investor who is driven by panic, euphoria, and apathy (on any given day), and approaches his investing as a reaction to his mood, rather than through fundamental (or technical) analysis.

Modern interpretations would describe Mr. Market as manic depressive, randomly swinging from bouts of optimism to moods of pessimism. Investopedia

Tesla Chart

Should i buy here?

Iam buying before it really starts flying!

Tesla comes always back yesss!

 Maybe i should sell!?

This is a scam! I am selling everything!!!

Oh my God !???

I am buying again

 I'll be rich, OMG!

 I am adding, this is the dip!

What is  going on???

 i am done!!! I am selling. This is bullshit!

This daily chart shows that even though, Tesla is a global leader in the electric vehicle business, that doesn't mean that trading in it, for a quick gain, you wouldn't lose money! Trend setting could have been very helpful here. Knowing what is going on in the market is very important.

Having your entry points and exit points is necessary if you want to optimise your gains.

A stop loss consists in determining in advance the maximum loss you can tolerate whenever a bad scenario occur.

Having a position in the stock market and not knowing what to do when prices move against you, give way to all kinds of emotions in your mind.

Panic, by losing money (because you don't know how dip it can end up) very painful.

Greed, when the price goes up (you would like to sell much higher than rationally possible, until it start giving up all the gain, sometimes even faster than you were prepare to anticipate).

Through fundamental analysis, you will be able to know how healthy a company is, you can select the right company according to the business cycle so you make more chance to success according to all the facts.

With the technical analysis, you know when the price is retracing. You would know when to buy and sell or hold. You will be able to build a strategy. When a security is overbought or oversold. Above all you would be able to read an interpret a chart.

Cubes

Investor Benjamin Graham

Simply said that, an investor should be rational and use rational tools to operate in the stock market. So, when Mr. market is too pessimistic and sells his shares, you and i buy. And when Mister market is so positive and dreams that it will fly into the multi digits, we will start selling. Do you remember the famous Warren Buffett quote? "Be greedy when the market is fearful and fearful when the market is greedy". With discipline and minicious work, it can lead you to great success.

 

Trading (of handelen op de beurs) brengt enorme risico's met zich mee voor kapitaalverlies, in sommige gevallen kunt u uw gehele kapitaal verliezen.

Alle informatie op deze website weerspiegelt onze eigen mening en is niet bedoeld als aanbeveling of verzoek voor enige vorm van investering. wij zijn niet verantwoordelijk voor uw beslissingen.

 

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