Lessons from 2015 that send me cringing
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 (bearish market). Perspectives change together with market outlook and current stock prices. Although it would be good opportunity for some value fishing.
- Dividends in good times should be put into my pocket
When a stock's share price is high, it's dividend option for reinvestment would be pegged to a lower price then the current share price. This makes getting scrap dividend shares look like premium. This would not be the case when the stock price plumage, as I could have used the dividend payout money to buy the shares at a cheaper price now when the market drops. Conversely, it would be a good idea to get dividend shares when the market price is low.
- Impatience and itchy fingers
This is the most silly mistake I made, on top of my untimely averaging down approach. Double ordered Keppel due to a buying mistake in the confusing DBS vickers portal (cash and cash upfront crap). Failed to cancel the order via correct portal successfully and was quickly filled as it was a falling knife.
Then not forgoing it at a small loss snowballed into big paper loss. !!@#$@
- When Hope is poison and Passive is complacence
Looking over a short-term STI chart (in 2015), I deduced it's trending up with some points of minor volatility. Oil prices can't seem to go any lower.
Looking over a 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 period and locked in some profits.
Yes, that's a 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....
***
自言自语的一章‘事后孔明篇’。
 |
| Source: threekingdoms.wikia.com |
Popular posts from this blog
I am finally back again after a 3 months blog hiatus. Not crushed or lost in space. I have started lately on a regular 35-hr work week and on my rest days I was preoccupied with taking care of family, household chores, going out with friends, reading novels and basically chilling. No inspiring topic here, just some quick updates. Inflation Despite most impacted by the rise in food prices, in terms of household expenses inflation, my family managed to get by comfortably enough on tingkat and homecook food. My next highest personal expenditure, after transportation, is meal-out with friends. With my regular work hours, income level has improved with slight sacrifice in terms of energy level. So I figured it justifies having those $20-per-pax dinners occasionally. I am made poorer too by my favourite eat-out food that have gone up in price by 10% or more! Mcd FOF meal $5 --> $5.80, Stuff'd chicken burrito $7.30 -> $8.10, Subway value meal $5.90 -> $6.50. T.T Currently going
Richard Coffin @ The Plain Bagel Quoting - "Often I ll see someone promoting FIRE as something that comes down more to mindset than your circumstance as though it's something available to everyone." Quoting - "Whether it's worth taking the risks and downsides associated with FIRE comes down to your own VALUE ." My takeaway on whether FIRE is for one or not is very simple - Can FIRE bring you what you desire and enjoy in life? Related posts: Retirement planning 3 ways (NOT) to be a post-retirement sluggard Thoughts about Financial Freedom part III Thoughts about Financial Freedom part II Thoughts about Financial Freedom part I Like what you read? Follow me on Facebook or Twitter for updates and news I dig. Check out my referrals for fantastic sign up bonuses on SAXO, Moomoo, Gemini, Celsius, Blockfi and more. 🤗 Thanks for reading!
I have been watching the bearish market unfold on the sideline, one that whacked almost every single asset class except for oil. Gold was not spared either as its price is sensitive to the Fed's rate hike. (Since it is mostly used as an inflation hedge in an investment portfolio, the non-yielding asset will have continued selling pressure if Fed continues its interest rate hike.) The worst of the bear-beaten lot must be cryptocurrency. Summer seems officially over and I don't know how long will this winter lasts. The massacre just got worse these few days. I was too confident and complacent last year to not harvest a fair share of profits while the sun shines. At the beginning of this year, I still DCA-ed into a few of them and thought maybe the sky was just... cloudy.. Until the hail storm comes, I have finally awoken to the fact that it is really winter now and how one catastrophe can trigger huge ripple effects. Some of my holdings with biggest price percentage decline: List
Why I do Defi on Polygon chain? It is because the gas fee is really low compared to many other chains out there, easy to bridge asset across and dApps on chain are aplenty. Matic incentives are still ongoing, although not as plentiful as during March-April period this year. I find it a pretty decent starting point for those who are dipping their toes into Defi as one won't get "heart attack" from gas fee shock if one encountered a failed transaction or accidentally double-sent one. (Ethereum gas fee per transaction average $15 - $30, may be higher depending on the complexity of contract.) So you can play around to your heart's content, just don't get rug-pulled . Below are two routes that I have used to onboard Polygon. Onboard routes 1. Ethereum-Polygon POS bridge The "official way" (before other bridges or crypto.com allow transfer) is via the Ethereum-Polygon POS bridge. You can read the step-by-step guide here. It would be for those who already
What is Curve Finance? Before we dive into the tokenomic, I would recommend reading this article as a primer if you are not familiar yet with the Curve Protocol - Three minutes to take you to understand Curve Finance, the king of stablecoin trading platforms . (The article took me about 13 minutes to read instead of 3!) [I have purposely coloured the texts of various tokens such that it is easier to differentiate them as you read.] CRV is the native token of Curve Finance and distributed as reward for providing liquidity to the protocol. Now let's take a look at the brother protocol of Curve which serves a different purpose - Convex Finance. What is Convex Finance? It is a protocol that allows liquidity providers to earn trading fees and claim boosted CRV without locking up CRV themselves. Liquidity providers can receive boosted CRV and liquidity mining rewards (on Sushi) This means that one can stake their Curve LP token with ConvexFinance to get Convex LP tokens and then stake
Disclaimer:
The contents of this blog are author's personal opinions and do not constitute advice to hold, buy or sell any securities, commodities or assets mentioned. I do not guarantee the accuracy and reliability of any information provided, and shall not be liable for any losses incurred from reading my posts or using the materials herein.
This blog may contain affiliate links to external sites.
美眉，
ReplyDeleteThe needle don't prick you, you won't know the pain.
Reading about other people's mistakes is only good for entertainment only.
I'm sure you have read similar mistakes from other writers and bloggers before ;)
This is better! Now you are using your OWN examples and OWN experiences.
If you find yourself making the SAME mistakes again, well, you should know what to do with yourself...
Yes Sir SMOL. Hope you are entertained by this post!
DeleteRead? Help me! I am still losing money in my Investment Quadrant (5)
ReplyDeleteHi Uncle8888, thanks for the post link. What's meant by your 'averaging in'?
DeleteRead? Why I Don't Average Down?
ReplyDeleteI needed remedial lessons, so also read:
Deletehttp://createwealth8888.blogspot.sg/2012/07/average-down-or-pyramid-up-2.html
and
http://createwealth8888.blogspot.sg/2010/08/understanding-stock-market-risks-edited.html
Good posts :)