Wednesday, July 15, 2015

How to profit from Public Forums - do the reverse...

I have neither bought the shares of OSIM before nor have I ever had an interest in the company.

However, today I bought 20,000 shares of OSIM at S$1.42 for trading,


I visit various public forums to see if someone can share with me information/knowledge that I may lack. 99.99999999999999% of the time, I am disappointed.

If I can't gather the information/knowledge through my own research, it is almost impossible that I would be able to find the answers from the public forums!

Then, I began to think...maybe I should do the reverse (of what most people, at the public forums, are thinking)?

Today, I decided to give it a try.

I saw two postings on 2 separate public forums,



Clearly, these 2 postings were bearish on OSIM.

Then, I took a look at the chart of OSIM,

OSIM Daily chart updated till July 15, 2015.

I noticed that OSIM was making a new low when it was trading at S$1.415/S$1.42. So, I took the sellers and bought 20,000 shares at S$1.42.

I have observed that, ALMOST ALL OF THE TIME, when market participants exhibit extreme optimism or pessimism, the market starts to reverse.

And, indeed, OSIM closed at S$1.44 and I am now in the money.

So, Warren Buffett was right,