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 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
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!
Among many great crypto articles I have read last year, I have curated three of which I felt are still relevant to date and very insightful. If you are looking to read more brain-stimulating articles, you could also check out my recommendations in the Weekend Brain Food series (mostly are non-crypto related). So here we go. Trading the metagame "Watching the winners & locating the problems in crypto can be a way of identifying potential metagames in advance." "Sometimes you can simply see that you missed the current meta and use that info to exit positions that are out of meta to preserve value , or just take a break and restore mental energy. As the meta and attention shifts to new things, capital bleeds out of previous metas. People sell the last meta they fomo’d for the next one. It’s a video game. Players want to play, they don’t want to be idle. Traders use the meta to exit/rebalance longer-term positions. If you had a big position in some token, which sudden
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
Investment and Trading Mr market has once again sank into lackluster mode since news of the Omicron spread. I think it's still too early to buy the dips as threats that Omicron poses to countries' economy re-opening remains to be seen. Although we see some glimmers of hope with the new COVID-19 treatment pills in pipeline. With FED's bond purchase tapering, "hot money" flow will decrease which might deflate a bit of the Mandrake's tent and rising interest rates might lessen indiscriminate spending. But will inflation of staples due to supply chain disruptions get readily resolved with less money printing? Hmm... Crypto I began to read up and learn crypto stuff seriously only this year - a late awakening. I started on crypto platforms like Gemini, Crypto.com, FTX and Celsius , finally ventured out to the once-elusive Defi world and dipped my toes into tokens other than BTC and ETH. Crypto (stablecoins included) formed about 20% of my investment portfolio. You
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 :)