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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Welcome to Ministry of Wealth!

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

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Friday, 28 August 2015

Strengthening War Chest From Our Investment Portfolio??? (2)


Read? Strengthening War Chest From Our Investment Portfolio???

Read? Switching Horses Is Not Same As Cut Losses Into Cash???



3M's - The Mind and Money Management


Many bloggers have talked about it over and over again.

Read? Loss aversion

So loss aversion will lead us to this feeling ...

It is better to REGRET not making more than to feel SORRY for losing our hard earned money.



Naturally; it will fit nicely into our loss aversion behaviour. Right?


How do we want to strengthen our war chest at the next market cycle?


Positively by making hay while Sun shines or negatively by pulling out weeds from our garden.

 or 


Cost Plus by making hay while Sun shines or Cost Minus by pulling out weeds from our garden.


Uncle, how ah?

Should I bite bullet and cut losses?

How do you feel?

Same same?



 

3 comments:

  1. Do you feel stressful when your stock price run up after you have sold to strength your war chest to prepare for the next market cycle?

    ReplyDelete
  2. Hi bro8888,

    I think we should only pull out weeds when we have no more hay. Sometimes, weed can become hay, and if we have nothing better to do with the weed that is pulled out, pull out for what? LOL

    ReplyDelete
  3. what is bite bullet? I thought it is bite teeth?

    In volatile market better to have 50/50. Everything in moderation.

    If u do not pull out, wait business is so bad that u may loose ur land (job) then u have no more hay...

    I am lucky to pull out quite a lot of hay and weed based on my post on 22 Aug.. scary!!! just before the black Monday.

    ReplyDelete

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