I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



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

Saturday 10 March 2018

Illusive Profits During Bullish Market But Permanent Losses In Bear Market

If you have NOT been through at least one full market cycle of Bull-Bear-Bull or Bear-Bull-Bear; you may not understand what Uncle8888 is saying ... Illusive profits during Bullish market but permanent losses in Bear market.

Over the years Uncle8888 have many coffee sessions with Readers/Starfishes who form the two groups of retail investors:

One group are newbies who have started out investing/trading for one or more years; but they didn't not achieve the investment return as expected. So they want to find out from veterans who have been in the market; and hopefully they can learn from veterans' experiences in the market; and see how to correct, revise or adapt their own investing method or strategies to achieve better performance.

The other group have been performing well during bullish market; but they couldn't clearly identify the phases of pull back, correction and stayed over-invested till market crash. Finally panic selling and locked in permanent losses to save whatever capital left on the table. They want to know how to survive market cycles and build sustainable retirement income or wealth for retirement.








4 comments:

  1. Thus the standard suggestion for non-correlated allocation & rebalancing...

    Regular "profit taking" and add into cash / safe bonds during bull;

    And buying under valued stocks during bear / correction...

    But boring for most people & involves underperformance during bull 😉

    Spur😁

    ReplyDelete
  2. stock price keeps going down. How to buy low or lower and sell high?

    ReplyDelete
  3. Not crazy ... but need additional tools to avoid falling knives...

    Basing patterns, exhaustion patterns, positive divergences, extreme sentiments versus prior crises, sentiments of smart money vs dumb money, etc.

    Many of the best days in the markets occur in same clusters as worst days in the market ... due to fear-induced volatility ... many of these best days are dead-cat bounces in severe bears...

    Scale in ...

    Or simply to have a bit more patience to wait for some indication of price recovery & follow through before buying aggressively ...

    Another thing to keep in mind ... buying bombed out blue chips not the same as buying country ETFs/funds...

    ETFs/funds have built-in survivorship bias where underperforming companies get thrown out, while better performing companies are included...

    Individual companies may face risk of slow or no recovery due to structural disruptions during/after severe bear markets e.g. some blue chip tech companies after 2000, or some blue chip US banks after 2008. Of course if you stuck with Amazon or Netflix then ho say liao!! LOL!

    ReplyDelete

Related Posts with Thumbnails