Nett worth survived Aug 07 major correction, and now back to the previous high. Important lessons learnt as follows:
1) NEVER, NEVER touch profits. Re-invest these profits back into the market and let the magic of compounding works its wonder.
2) When the market dragged down those earlier high performance stocks, it is also time to look hard at our portfolio and sell those laggards, hit the bullet, take realized losses, and use the recovered capital to buy into those fallen stars and then wait for market recovery. This strategy worked well in both Feb 07 and Aug 07 crashes.
Now, I firmly believe the power of compounding by never withdrawing any profit. The sharp correction in Aug 07 has lesser impact on the overall value of the portfolio compared to the correction in Feb 07.
I am 60+ yrs old uncle living in HDB heartland who has retired @ 60 on 30 Sep 2016.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 and now becoming full-time retail investor. So I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I have two sons and one daughter; two working adult children and the youngest son is currently in his 1st year SUTD.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2038
Last updated: 16 Oct 2016
Disclaimer: Stock trading involves significant risks. Create Wealth trader is not a licensed Investment Adviser and will not be responsible for any losses which you incurred. You are advised to always do your own homework before making any trading decision.