Biggest Lie revealed : I don’t gamble

When you gamble unconsciously

Every time when i read about people doing “crazy” thing, like 800Million lost in futures by owner of Hin Leong trading. Most people will comment “that’s something i will never do”.

Well

For me its always what and where is my 800Million gamble in my life. Gambling or risk taking is not scary ….

but while you doing it unconsciously is worrying.

Some investor doing “day trading ” base on a crystal ball called price chart;  while consider they are investing while they are purely speculating the result of coin flipping.

Lets look back on May, many client rushing in end of April and try to fix EVERY requirement from late April till mid June. Most enquiry come in package means you either take it all or nothing. This strategy is betting on the “long” position ( aka you think it will go up so you fix it now). What if the oil price keep going down ? then all your requirement are on higher cost now.

Another common pratice is to wait til the last minute before barging tight , now you are betting on a “short” position. ( aka you think price will go down so you not fixing now), again the prediction is purely guessing as you think “its up for 2 days now must go down”.

There is a fundamental different between trading with “feeling ” and trading with well informed and calculated risk. The market is so unpredictable nowadays and  there are challenge on credit and risk management that never been seen before.

I Hope above example give you some extra understanding on the implication of different trading strategy.

Until next time