The world had went very colourful recently- no, I'm not talking about Malaysia's political scene (not keen, not keen, not keen), but the investment world!
I've been following closely on the US stocks- one for example AIG, and lately have been staying up late (late by my beauty sleep definition means past 11pm) reading real time news from US websites.
The heart pumping excitement starts when AIG stock plummets from USD12 plus to USD4.37 yesterday 15.9.08, and NOW USD2 16.9.08!
The peak price was USD70+.
Imagined- for RM7.00, you can't even get Public Bank stock.
Now, I can understand the thrill when people invest in stock market.
But this is where the true investors separate themselves from the greedy hordes.
For true investors do their homework & due diligence, and somehow managed to separate emotions from their decisions. Where else the rest of the gang- either blindly follows or face unnecessary panic attack, and sell when they should have hold on. They may be ignorant or plain lazy to put the effort in getting their facts right, and depends a little too much on gut feeling.
Bringing it up a notch, my appetite is whet for options trading though. And I foresee in the near future, this investment vehicle will see my constant visit.
These few days excitement will be sweet for option traders, beautiful.
Now, it's the time 'to be greedy when others are fearful'.
Quote from Warren Buffett- 'Be fearful when other's are greedy, be greedy when other's are fearful'.