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
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 ...
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 ...
I recently saw this video on CNA Money Mind channel https://www.channelnewsasia.com/watch/money-mind-2024-2025/going-gold-4299741 and thought I would summarize some learning points for those interested in gold investment. Photo by Zlaťáky.cz on Unsplash Gold is viewed as a safe haven asset in time of uncertainty, crisis or geopolitical risks. Demand for gold is influenced by Central bank purchases. The purchase premium of gold decreases in % with relationship to the gold bar's weight. Eg, a heavier gold bar has lower purchase premium over a lighter one. There's no GST for investment grade gold bars. Gold-backed ETF is backed by physical gold. Lower yield environment will benefit gold prices as the opportunity cost of holding gold lowers. Source: https://www.statista.com/statistics/673513/monthly-prices-for-gold-worldwide/ As seen from the chart, the last mega price spike was in year 2019 to 2020. This year we saw another mega spike. In order to circumvent any US withholding t...
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....
Life's not easy, life goes on. Rather than gripe (we know the saying "人生不如意事十之八九"), it is important for us to focus on risk management in our daily lives and how to become anti-fragile. Buying insurance, setting stop-losses, cut losses and bad connections out of our lives, look before stepping and don't seek cheap thrills. That's risk management at its very least. Taleb's concept of anti-fragile is one level above risk management and robustness. It is about how chaos can make one better and stronger. Don't fear volatility, uncertainty and disruptions. Instead view them as opportunities. Quoting the video, we should learn to "transforms fear into prudence, pain into information, mistakes into initiation and desires into undertaking" . Toughen your mindset If you have tough desire, then be prepared for a tough process working towards it. Another point highlighted in the video for our mind training is - we can imagine worse case scenario, imagine...
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 :)