Why did you buy China Mobile at over $130?

Good question, I think. If you bought China Mobile at over $130 a share, you would be suffering big losses by now. The share price has dropped to $80++. The reason why you bought it at such price is important to any review of investment strategy.

If you were purely speculating, you should have sold all the shares and cut loss after a 5-10% drop. It's a big mistake not selling the shares.

If you were investing for medium to long term, purchasing the shares at such high price and valuation was the first big mistake from Day One! Again, not cutting losses when the shares have fallen to $100 or lower is another big mistake.

Are we wise after the event? No, the matter can be easily analysed by using common-sense. If you buy high, you are bound to lose if the share price falls. The bets for the price going up are much smaller than the odds for going down. This is something a rational investor can calculate or estimate before placing any order!

So why did you buy China Mobile at over $130? Don't tell me that you were actually gambling! You should go to Macau to gamble and try your luck there. Gambling on stocks is the worst kind of gamble. You would not only cause harm to yourself but also harm to others. Why? Your money will feed the crocodiles in the Hong Kong Stock Casino and in turn, they will have more resources to eat up other fishes after becoming fatter. You are actually feeding the crocodiles by your own flesh and blood so that they will have more energies, resources and powers to feed on your neighbours. Once you realize this, you should understand how clever you were when you bought China Mobile at over $130 a share.

Sure there are great gamblers winning all the time. But what makes you think you are the lucky one? If you have all the skills and luck to be an invincible gambler, you should go to bet in the Jockey Club, the Macau casinos....Don't go to the stock market because you will doing harm to others as well. Yes, you may become the ultimate winner over the crocodiles and if you can, you can purge and kick out the devils out of the casino. But again what are the chances of you becoming such lucky winner?

So next time when you buy high, think about the lessons from China Mobile. Good luck.