Monday, December 03, 2007

Stocks and Romantic Relationships


Now that I have started to invest in the stock market, I find it interesting that there is a striking parallelism between how I handle my romantic relationships and my stock investments. I am not inclined to “buy” or “sell” based on the day-to-day “gyrations” of the market. If a stock is fundamentally sound, day-to-day highs and lows should NOT affect my general perception of it - at least not to the extent of buying or selling. However, if a stock has failing intrinsic value, I just have to let go. While you can still probably profit from going technical on its “gyrations”, it is most likely not worth the effort, as the stock would probably give you more losses than gains… well it really depends on how good a “technician” you are. I am starting to learn “technical analysis” and it is kind of interesting… but I am scared that once I become good at it, I might get addicted.

Given this, I think I can be called a fundamentalist rather than a technician. Although in the past, I did use technical analysis to time my “entry”. The key difference is that love is a generally one-at-time thing, unless of course you want to get into trouble.

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