Hot trend followers or principle investing?

Ah_Meng
2023-04-24

Before continuing, just a word of caution. This post contains a couple of 🐯 community posts and / or remarks. I can assure you that this piece is original with no attempt for plagiarism. It is a pure discussion piece and not meant to advertise or criticise any contributions from anyone from the 🐯 community. 

The motivation kicks start from a comment from a valuable fellow 🐯 community contributor. 

I must say that my fellow contributor, @LMSunshine   is just being kind and just. She is definitely not wrong. Sometimes, it is just about efficiency and effectiveness [Happy] But I just happen to want more than sharing my remark, rather trigger a conversation.

Other contributors of similar topics have triggered my thinking of what kind of investor / market player / speculator I really am. I do have the same question for any interested readers of this post, thus the sharing of my thoughts.

Not sure about your investment journey, some could profess to be a value investor, some growth investors. Along the way, as we learn from fellow investors, we might change our investment philosophy or attitude. A lot also depends on the time frame that we have and current market outlook. I find that age is a very important aspect of decision making. When we are younger, when time looks forever aplenty, risk taking and compound growth looks no wrong. As we are in the market longer, we experienced more market ups and downs (think Asian financial crisis, Great recession, etc). How many of the younger or new investors have actually seen established companies like DBS, UOB from Singapore, BHP, Rio Tinto from Australia as a risky and unwanted stocks, knowing that shares prices tomorrow is likely to be cheaper than today? We are not even talking about Amazon when it was at its infancy stage here.

I might have been irrelevant. The point I want to make here is that perspective changes with experience and age. Risk tolerance has everything to do with it, and market experience has played an important part to building or destroying that.

I will now share some posts / comments from fellow wonderful contributors for my next part of my discussion.

From above, you might notice some mix from value and trends chasing market participants. If you think back, many ideas encouraged by 🐯 app come from certain hot topic events or triggers. See an example along with my contribution.

Is this itself not trend chasing πŸ€”? Actually, there is nothing wrong about trend chasing. It is always the shining things or latest trends that attract the most eyeballs πŸ‘€ and I am sure we are in agreement here. Market trend chasing is always exciting while principled, in the background prowling is probably plain boring and not inviting for many. 

Even for those disciples of value investment, even those of the likes of Warren Buffett, who is to say that trend following has no effect on them. Think of 🍎, TSMC, or even Snowflakes. Warren Buffett is either ahead of the trend or following slowly behind it. If Warren Buffett has not come around to 🍎, Berkshire Hathaway's investment returns won't be what it is today! Trend is a moving train. Some are bullet trains, others might be slow prowling but ever-moving locomotives. They affect everyone, whether we like it or not.

Final word, I follow the market passively. I read the news, study the market, read some 🐯 postings, identify the companies of interest, follow their results, read their charts to identify entry opportunity. So, does this make me a principled market participant since I do things my way, at my timing? Or does this make me a trend follower, since my market idea / research is probably triggered by an interesting article I read in a 🐯 post or something I read in the news? Or perhaps both? 

Big trading houses have been using mathematical algorithms and big data to capture trading patterns and directions in their bids for market advantage. With the emergence of AI, perhaps not long into the future, retail investors could convert trending news flow into hyper-quick fundamental research analysis results! So who can be sure that fundamental research based value investing is also not trend chasing in the future? Market needs a spark or trigger to move. Value investing is for the long haul, but it doesn't mean that it can't work well with a bullet train pushing behind... 

What do you say to my question? What investors are you, really, my dear readers and fellow valued contributors? 

I hereby acknowledge my fellow contributors,@LMSunshine  @koolgal  @Elliottwave_Forecast  @Kaixiang  @intheloop @nerdbull1669  

@CaptainTiger  @Tiger_comments  @TigerStars  @Tiger_Earnings  

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • koolgal
    2023-04-24
    koolgal
    Thanks for sharing your awesome insights. We are all different and we have our own distinct preference or style  of investing. That's makes it so interesting. 😍😍😍
    • koolgalReplyAh_Meng:Β 
      😍😍😍
    • Ah_Meng:Β 
      The pleasure is all mine… [得意][ζŠ±ζ‹³]
    • koolgalReplyAh_Meng:Β 
      It is always a pleasure to share ideas with you 😍😍😍
    • Ah_Meng:Β 
      Indeed... that makes human investing so unpredictable and opportunities in the market... [Happy] Thanks for reading and wonderful contribution to make this a better and more interesting place
  • LMSunshine
    2023-04-24
    LMSunshine
    Great that you made your post comment into a post and won 200coinsπŸ₯³πŸ₯³πŸ₯³ Keep ✍️ Love your posts, looking forward to reading more ❣️Totally agree with your Buffett analysisπŸ˜‰
    • Ah_Meng:Β 
      Thanks for the inspiration... I told you I need some... [Facepalm]
  • Ratt
    2023-04-26
    Ratt
    Cool. Tesla will lose ground as musk eats up saving for spacex, but history repeats it make move as he goes on. It be a rollercoaster ride that good for long runs.
    • Ah_Meng:Β 
      Thanks for your remarks... Yes, Tesla will continue to lose ground, share price wise. Elon Musk is a master of distractions. What's being tweeted is highly likely to be smoke screen. If I am his followers, I should know to take what he tweets as a pinch of salt and look the other way...
  • BillyWilliams
    2023-04-24
    BillyWilliams

    Hehe very interesting opinions…. just learn different ideas from people here.

    • Ah_Meng:Β 
      Same here... we are learning every day... just keep the posts coming 😁. Thanks for reading too!
  • Nibatry
    2023-04-24
    Nibatry
    wow, thanks for sharing
    • Ah_Meng:Β 
      Thanks for reading! I hope you like it...
  • Aqa
    2023-04-25
    Aqa
    Liked, shared and comment to suport my friend.
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