My Contributing Article For Moolah.asia, the 1st Flipping Financial Magazine Online!

March 1, 2010 · Filed Under Contributed Articles

Hope that everyone enjoyed their long Lunar New Year! After a long holiday, it is now time to get our engines running again and strive towards our goals for the Tiger year. I’ll like to start my blog rolling with a piece of good new – I’ve been invited to be a contributing writer to this online financial magazine – MOOLAH.asia

My very first contribution is a chapter extracted from my eBook (if you have not subscribe for it, you can do so for FREE at the bottom of this page) which I re-wrote to cater for their Valentine’s Day theme. Wow, I never thought that I could really write before starting my blog, and now I’m invited to be a writer! Of course, I must first thank all of you for showing support to my blog, that really gave me a whole lot of encouragement and confidence

Due to my agreement with the MOOLAH.asia folks, I can only publish part of my article below. But not to worry, MOOLAH.asia is a FREE magazine, so you can access my article along with the other interesting content simply by registering at their magazine site.

I’m extremely excited about this new online venture and it is definitely a great motivation for me to continue writing. Now, let’s take a peek at my virgin editorial contribution:

Why You Should Never Fall In Love With Stocks

Love is an integral part of our life and we should show our love to people we care for – our spouse, parents, children, siblings, friend etc. But as a trader, bear in mind this golden rule in the stock market – NEVER fall in love with stocks!

Just because you are working in a specific company or have made money from a certain stock before does not mean that you should buy and hold onto the stock blindly. Buying and selling decisions in the stock market need to be made with logic and reason, not with emotion.

Let’s take a look at Cosco Corp below, which used to be a hot potato in the Singapore stock market. Note that the phrase ‘used to’ signifies that its glorious days are already history.

Cosco Stock Chart

The Ship That Sank Along With Their Money
Cosco is a famous shipping company in Singapore, and its stock has enjoyed spectacular ratings from several analysts and broking houses. Cosco’s share price has been climbing up since its IPO days and whoever bought it during its early days would surely have loved Cosco like crazy! However when its earnings started to decline during the 2007 financial crisis, a lot of people did not pay attention to how overpriced the stock really was.

The shareholders of Cosco were probably thinking “Come on, the price has fallen this much already, how much lower can it go?” Even when the stock dropped to S$6 from a high of S$8.20, they continued to reassure themselves that “good companies will always rebound” and “you just have to be patient in the stock market”.

Come On, It Can’t Go Any Lower.. Can It?
Sad to say, thousands of shareholders who believed in the “it can’t go much lower” theory was proven to be wrong over and over again each time the share price breaks a new low in front of their eyes………….

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The MOOLAH.asia guys forbid me to reveal any more than this, so please visit their magazine site and subscribe for FREE to read on

May the trend be with you guys! Cheers

To your Dream,
Derick
“Dreampreneur” – Engineer Your Dream. Be an Entrepreneur.

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