Dedicated to Wilson:

In the time of war, think peace; in the time of peace, prepare for war. Anticipate (with mind) a bull when it is a bear market; anticipate (with mind) a bear when it is a bull market.

In a time a peace, make sure you train strong army and excellent fighters; because war and peace is just always a cycle phenomenon, as how yin and yang; day and night, bull and bear and etc.

The index has risen tremendously and violently, we could observe waves and waves of speculation are moving from steel, property, plantation, banking and finance, warrant and now, MESDAQ. MESDAQ is interesting, because many funny and not truly business-driven ideas are funded there. When we are playing in MESDAQ, quite often, we are putting RM100 to buy a 10 cents coin, hoping it will be going up RM200. To be precisely, too often, we are offering 20 cents per share to buy a company with an EPS of -20 cents.

My experiences tell me that, when MESDAQ is starting to make a trending up, the end is not too far. We cannot tell exactly when the end will arrive, but we know, we must psychologically anticipate the critical turning point to be happening. We still have our capital in MESDAQ, we do not need to pull out all our capital, but the single most important thing for us to do now is, anticipating a turning point, a fast and fierce one. Anticipate, and when you feel doubt, just distribute to those “greeder” and “hoper” in the market. No body can tell when the turning point is, but one safe thing to do is, when you feel doubt, get out! In stock trading, ultimately, safety first, make money later. We know exactly, precisely and consciously that, our ultimate goal is to take profit home, accumulate the profit, but not to make a killing once we charge into the market. A sudden great profit is God-given, a consistent profit is self-given.

As how nations training up their army and develop their cutting-edge weapons, what we need to do now is to set up a Bond fund account and accumulate enough bullets for the next crash. We still invested in the market, but the profit taken out, partially at least, must be put into safer investment vehicles. I believe in charity, there will be a lot of people earning much money in the market while you are cutting down your percentage of capital invested in the market, but please let them take the profit away with them. Be mercy, we don’t need to earn all the available profit, instead, why not leave some for others?

Another critical point to be addressed is, never, never and never to expect any great bull run to happen. I see so many investors and speculators that believe that KLCI would have a bull run and reach 2000 in near term. The problem is: what is the basis for that to happen? I never try to predict a great bull run will never happen. But, having expecting to have a great bull run injects hope and emotion into your trade. When that happens, you are bounded to be defeated systematically by your unsystematic emotion.