Skip to main content

If only I could turn back time


I would stay...

1. Keppel Corp (sold one-third of holdings with loss @ $6.19)
Bought in Aug 2015 @ $7.50
Current $7.75
(Missed upside 25%^)

2. CDL Hospitality Trust (sold with no gain)
Bought in Apr 2016 @ $1.40
Current $1.64
(Missed upside 17%)

3. DBS (sold with gain at $20.55)
Bought in Mar 2016 @ $15.35
Current $25
(Missed upside 21.6%)

^Missed upside is calculated by the difference in current price and sold price / sold price.


 ------

Stop loss, Cut loss, Take profit, inaction all depend on our
MENTAL STRENGTH, SKILL and PATIENCE.

 -------

 Why did I sell those stocks away even though they have good fundamentals?

I seriously thought I could catch a short-term correction to buy back at a lower price than when I sold. Alas, Mr market didn't give me that opportunity and just ramped on.

Labels:

Comments

  1. CreateWealth888825/11/2017, 14:43

    Theory and practice not the same over point X, Y and Z. Reasonable doses of Panadols can ease heartache with right position size relative to total investing capital.

    ReplyDelete
    Replies
    1. Rainbow25/11/2017, 17:15

      Hi Uncle8888, what are the points X, Y, Z you referring to?

      Delete
    2. Createwealth888825/11/2017, 18:49

      Right or wrong we will only know after days, months and months

      Delete
  2. Singapore Man of Leisure26/11/2017, 08:54

    Rainbow girl,

    If the market had tanked -50%, would you be writing the same post and reflecting how you were glad to let go of Keppel, CDL, and DBS?

    And if you can turn back time, wished you had sold OCBC and Genting Singapore?

    Well, that's what many veterans/survivors lamented during 1997, 2000, and 2008 ;)


    From your reflection, I am guessing you have not been through a -50% bear market yet...

    That's why we need to go through at least 1 (preferably 2) bull/bear cycles to really know what strategies and vehicles are suitable for us.


    Be patient and keep learning more about yourself!



    ReplyDelete
    Replies
    1. Rainbow26/11/2017, 19:55

      Hi SMOL,

      I like your reflective 'pokes'. In the last mini-bear, my portfolio went down 30%. Blood spill now recovered.

      Yes, when the market is on bull run we lament we sell too early. When the market tanks we lament we didn't sell fast enough.

      And the 'to sell, or not to sell' feels like the left brain fighting with the right brain.

      Delete
  3. CreateWealth888826/11/2017, 09:02

    Money management and position sizing relative to total investing CAPITAL (our hard earned saving) is critical. Volality is not risk. Ensure loss of any capital can mathematically be recovered from other positions.

    ReplyDelete
    Replies
    1. Rainbow26/11/2017, 20:01

      Yeap!
      And volatility is essential for gain/loss.

      Delete
  4. Spur26/11/2017, 11:38

    Errr ... if you had trader mindset ... why didn't you buy back when trend turned positive & you "know they have good fundamentals"? :)

    Stop loss, position sizing etc are just tools ... by themselves they are neither good nor bad. It's how you use them.

    E.g. "appropriate" stop loss depends on an asset's or stock's volatility say over last 5-10 years. Setting too tight a stop loss for a volatile penny stock will be "bad" as that simply whip saws you to bits. Hence volatile assets require larger moving room for stop loss. Of course if you put most of your money into risky assets that require 50% stop loss levels, you're gonna get screwed. That's where position sizing comes in ... so that 50% stop loss translates to a very small percentage of your portfolio value.

    That's why when your portfolio size gets large, it's seldom worthwhile to expend mental capital on small caps or penny stocks or speculative picks due to the small position sizes. Other than maybe for entertainment or mental challenge (not mentally challenged LOL).

    ReplyDelete
    Replies
    1. Rainbow26/11/2017, 19:48

      Hi Spur,

      Thank you for your enlightening comments. :)

      For DBS, it was hovering around $20 to $21 for a while and based on historical high, that was a resistant point before plunge. When it climbed beyond $22, although uptrend is intact but it is too steep so I have no guts to buy.

      My position in Keppel was bigger than I wanted, so I chose to diversify that sum to another stock. I will just hold on to my remaining 2/3 and pray for uptrend to continue haha.

      Delete
    2. Createwealth888826/11/2017, 22:33

      Quote : "My position in Keppel was bigger than I wanted, so I chose to diversify that sum to another stock."

      Finally; you practiced position sizing by right sizing (reduce) to calm your mind.

      Delete

Post a Comment

Popular posts from this blog

Reflections for year 2024

2024 has been a relatively peaceful year. So peaceful that I have read countless novels and other books, met my sports buddies almost every weekend and picked up horticulture. Physical and mental health As we say, health is wealth. I have stuck fairly consistently with my exercise regime and tried to include more fruits and vegetables in my meals (although I eat out more and cook less these days). My weight, BP and cholesterol levels are doing ok. For those 40 years and above, remember to get your  subsidized health screenings from the government . Working less and meeting up with friends more contributed to an improved mental health. I see that the government has stepped up on initiatives in the community but work place initiatives from employers still seemed lackluster, especially for those who can't WFH and need to commit 44 hours or more a week at frontline work. I have also started a Gratitude journey to celebrate all my little life milestones. Financials Investment wise ...
Post a Comment
Read more

The best credit card for my house reno & prep

As updated in my previous post, I have finally bought my own place solo. For the past few months I have been busy coordinating with various contractors and vendors for my house renovation. As I am still on flexi work schedule, I decided to be my own ID. With only a simple renovation in mind, I set my reno budget as 20k (aircon & fixtures inclusive). The renovation process and acting as my own ID were not as easy as I thought. It took me about a month to gather and compare quotations from different contractors and another few weeks to finalize all the things that I need my chosen contractor to do. I eventually settled for a main contractor who specializes in carpentry work but also provides painting, tiling and electrical services. I have grossly underestimated the amount of defects that need fixing for this resale flat. Fortunately, the floor tiles and some of the existing built-ins are still in good condition so I kept them, otherwise I would have burst my budget. The first issue ...
Post a Comment
Read more

Shit happens and I lost my low-hanging fruits

My SAYE account has just hit its 25th month anniversary which is also the "month of maturity". Anticipating to get the 3.5% bonus interest for all these months of saving, I was shocked to see only $17+ cash gift credited as opposed to a few hundred dollars. I was about to send a message to query the bank what caused this interest plummet versus what I got in the 13th month when I came across a debit transaction in my account history (GASP!). To my oblivion and horror, I have accidentally selected my SAYE account to transfer $50 to a joint account to foot some bill in one of the months last year. Here's the terms and conditions for those who are not familiar with the SAYE account of POSB. "To receive the additional 3.5% p.a. Cash Gift Interest, ensure that you do not make any withdrawal from your POSB SAYE account." "If a withdrawal is made in the month, this will result in the previously accumulated additional 3.5% p.a. interest to be forfeited." Damn....
Post a Comment
Read more