As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Sunday, 17 August 2014

Rebooting our trading/investing strategies???


Like our computer, sometime it doesn't work as expected or taking too long to respond.

What we do?

We press ctrl-alt-delete button to reboot. Right?

Like as in our trading/investing?

But, how many of us will reboot our trading/investing strategies when we realized that these strategies have NOT been working to our expectation?


Rebooting our trading/investing strategies


Read? The Aftermath (August 2014)


Read? Is this worth my time and effort to trade? (2)

Read? How to know when I am wrong?

CW8888's comment:

When I was doing contra trading, I never have any consecutive months of losses. Once I have three consecutive months of contra losses in 2008, I stopped doing contra trades anymore.

Since Nov 08, I didn't have any consecutive months of not making money from short-term trading. 


When I have three consecutive months of not making money from short-term trading in 2011, I knew that I was wrong. I stopped too.

We can't know where the market is going; but we will know how are we doing based on our own past performance.

Self awareness is very important if we want to know whether we are right or wrong.


4 comments:

  1. Are you also one of those who have rebooted your investing strategies?

    ReplyDelete
  2. As we learned from our investment mistakes, our strategies have to evolve and adjusted.

    Yes, I used to to do contra as well. But after losing money, I stopped contra.

    The market is just too efficient for small players like me to make profits.

    Thanks for the constant reminder not to indulge in such activities.

    Regards,
    SG Wealth Builder

    ReplyDelete
    Replies
    1. It's necessary to re-adjust one's trading or investment strategies from time to time.
      There are many reasons for doing so :-

      - due to bad investment decision made
      - pursuing full growth stock strategy
      - pursuing passive income strategy
      - preference for contra trading
      - in line or keeping up with work-life changes
      - there is flaw in current strategy
      - need urgent funds for emergency use
      - sudden windfall, example of winning lottery
      - etc etc

      Just need to remember, invest with money which you can afford to lose it all away.

      Delete
  3. Knowing early is better.

    The worse thing is the strategy keepa changing and one doesnt know where it went wrong.

    ReplyDelete

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