Lessons learnt from Mr Stock Market:
- What looked like 'pretty good' deals then (in a bull or not-yet bear market), do not look good now (in a bearish market)
Perspectives change together with market outlook and current stock prices. Might be a good time for value investing. - Dividends in good times should be put into my pocket
When a stock's share price is high, it's dividend reinvestment would be pegged to a lower price then the current share price. This makes getting scrap dividend shares look like a good deal. This might not be the case when the stock price plummets, as I could have used the dividend payout money to buy the shares at an even cheaper price later as market continues its bear trend. - Impatience and itchy fingers
This was my silliest mistake. I accidentally submitted two buy orders for Keppel due to a confusion in using the DBS Vickers portal (Cash vs Cash upfront). I failed to cancel the wrongly placed order in time and it was quickly filled (caught a falling knife!). Then this initial small loss snowballed into big paper loss afterwards. !!@#$@ - When Hope = poison and Passiveness = complacence
Looking at the long-term STI chart (here), we can see that STI has in fact come to a point of resistance at that time. If I have realized that, I would have sold my 'look good' stocks bought during the Greek crisis and locked in some profits.
Yes, that's a Jedi trader mindset.
A long-term investor mindset would be - hibernate through the bear (few months, few years, 10 years...?) and things would be fine. Have dividends to collect and STI zig-zag trends upward anyway, right? Zzzzz....
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自言自语的一章‘事后孔明篇’。
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| Source: threekingdoms.wikia.com |