Don't give up good stock even the sky is falling

If you guys can remember, last year around mid-August the Asian stock markets had a terrible fall. Of course, the Hong Kong Stock Casino was no exception.

The Hang Seng Index fell almost 2000 pts within a day and I saw many gaining stocks turning into losers or almost. It was too tough for me to hold on to some dear stocks and I decided to forgo them to take profits first under the falling market. Well, I needed cash and more cash to survive and fight back.

Now one year afterwards, I look back and you know what? For those stocks that I re-purchased back after my 2007 August sell-off, their market value is still good. On average they are up 20% despite the HS Index has tumbled almost/over 40% this year. But I must admit that there are some good stocks that I did not buy back after mid-Aug 2007 and not surprisingly, their market values are still up.

The real BIG winner is always the one who (1) has more than enough CASH to support him; and (2) does not give up his good stocks even the sky is falling. In my view, condition (1) helps you to fulfil condition (2). This perhaps explain why the rich and super-rich always have advantages in the market. So next time don't feel too bad when you see a super-rich making huge money!