The Stock Exchange of Thailand is driven by foreign investors, but most of the time Thai investors fall victim to losses. When the bull makes an appearance, retail investors rejoice as their stocks rise.

Before they realise that they should have unloaded their stock, the bear arrives on the scene, and stock has taken a nosedive.

When that happens, it is always the retail investors who feel upset and nervous. They don't know what to do apart from hold their stocks.

It is another story if you think like a fund manager.

When the market plunges, fund managers use the opportunity to shop around for good shares at low prices.

Hugh Young, managing director of Aberdeen Asia, said he and his company were comfortable about the plunge in global stocks.

He said: "Investment from the fund-managers' point of view is not about emotion.

They have conducted the research, and they stick to their strategy. Of course, they keep an eye on the market movement, but their decision is not shaken by market volatility.

"You may argue that the money the fund managers manage is not theirs, so they can invest emotionlessly, but don't forget that fund managers have to maintain their reputation," he said. "If they screw any fund, they screw themselves too."

 Although retail investors don't have as much money as fund managers do, they can adapt their style to survive in a fluctuating market like the Thai stock market."

Young said no one could buy at the bottom and sell at the top price.

Based on his company's in-house research, they will purchase when the stocks are undervalued and sell when they become overvalued.

Of course, for retail investors it's not as simple as that. To save yourself from seeing your investment portfolio in the red, perhaps it is time to start investing without emotion.

Doctors study for years to become experts in their fields, but when retail investors invest, they take only a few seconds to make a decision.

You have to do some homework: do some research, read the financial news, and look at the government's and regulators' policies.

Then digest the information before making your decision.

Warut Siwasariyanon, vice president for research of Globlex Securities, suggests that for long-term investors who can hold stock longer than six months a low market is an opportunity to buy good stock.

At the moment he recommends Siam Cement, PTT Exploration and Production and PTT.

He hinted that stocks in energy, banking, construction and industrial sectors were the ones for long-term investment now.

He added that shares in refinery companies would stay in good shape as long as the oil price remained high, while banking, construction and industrial sectors were expected to perform well in the rest of the year.

Many brokerage firms believe foreign investors may come back at the end of the year or earlier.

If you do your homework on the stocks in these sectors now, you will know which stock is undervalued or overvalued.

Then it will never be too late to invest and you can rest assured that you will most likely come out ahead.

Piyarat Setthasiriphaiboon

The Nation