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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Wednesday, 1 June 2016

Portfolio Management and Risk Control - Not All Poisons Kill!


What Uncle8888 knew from his encounters with many other retail investors on their large losses and become extremely difficult to recover from such large losses is that they have been averaging down their losses till no return!

That is very bad portfolio management and risk control!

Uncle8888 as fisherman and no matter how careful he can be; but at some moment of complacency and carelessness he has been stung by sting-ray, catfish and scorpion fish. Luckily, he was not bitten by sea-snake; otherwise, he wouldn't be around to blog!

Not all poisons kill!




4 comments:

  1. Ha! Ha!
    i bet anyone to show me a financial book that encourages average down strategy.
    If the author did, he will warn you to be extremely careful.
    And not to average down more than twice the most.
    Yet I only know how to average down.
    Financial author on the other hand encourages average up.
    To me it seems you are buying by paying more and more for the same thing.
    Is it logical or not?
    Don't know, haven't try.
    Nothing is like you try it lol.
    Shalom.
    Amen.

    ReplyDelete
  2. CW,

    I didn't know fishing also dangerous!

    That's it!

    I'll stick with fishing using magnets and plastic fishes with metal mouths in a little pail.

    Hey! I still remember my kindergarten games!

    ReplyDelete
  3. No need sea snake.
    How about stone fish?
    Or puffer fish?


    Pufferfish Toxins

    A predator that manages to snag a puffer before it inflates won’t feel lucky for long. Almost all pufferfish contain tetrodotoxin, a substance that makes them foul tasting and often lethal to fish. To humans, tetrodotoxin is deadly, up to 1,200 times more poisonous than cyanide. There is enough toxin in one pufferfish to kill 30 adult humans, and there is no known antidote.

    Amazingly, the meat of some pufferfish is considered a delicacy. Called fugu in Japan, it is extremely expensive and only prepared by trained, licensed chefs who know that one bad cut means almost certain death for a customer. In fact, many such deaths occur annually.
    Note:-
    There are around 120 known species of puffer fish, the second most poisonous creature on the planet after the Golden Poison Frog.

    They say after feasting on the puffer fish, there is a tingling numbness on your tongue.
    That's what so enjoyable as considered by the Japanese. --IRRC.
    Want to proof that?
    Enjoyable or not?
    Ha! Ha!
    Not me
    Not me - not worth the risk.

    ReplyDelete
    Replies
    1. Stonefish are members of the family Scorpaenidae, or scorpion fish.

      Delete

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