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

Saturday, 21 April 2018

Stop Loss, Cut Loss and Trailing Stop


There is no universal experience or outcome in implementing stop loss, cut loss and trailing stop; we experienced them in our own way. 

No absolutely right or wrong! 

It is your own outcome over market cycles that matters!

Banks were the faulty stocks during GFC; but now they are breaking new historical records!

DBS hit new historical high at $29.95

Theoretical high after XR in 2007 was $22.25 

Read? DBS : Sold @ $19.38 (Re-presenting it in new format)

Round 21: ROC +20.4%, 449 days, B $16.01 S $19.38
Round 20: ROC +11.3%, 490 days, B $16.98 S $19.03 
Round 19: ROC +178%, 4,385 days, B $7.53 S $21.04   
Round 18: ROC +144.7%, 2,174 days, B $8.27 S $20.31  

Round 17: ROC - 31.1%, 232 days, B $24.20 S $16.80  
Round 16: ROC - 21.6%, 222 days, B $23.20 S $18.32  
Round 15: ROC - 18.1%, 186 days, B $22.90 S $18.88  
Round 14: ROC - 9.2%, 70 days, B $21.00 S $19.20  

Round 13: ROC +9%, 65 days, B $20.50 S $22.50 
Round 12: ROC +10.6%, 8 days, B $20.50 S $22.60

5 comments:

  1. Portfolio allocation. When too big is a pain in the ass! Size cuts both way. Same as leveraging!

    ReplyDelete
    Replies
    1. Hee hee... that's why I prefer ETF or even UT if more efficient than ETF (gasp! bei kambing alert! LOL!)

      Takes a lot of conviction to have a single company occupy >10% of my portfolio!

      [I need to be careful with certain ETFs/funds e.g. Apple, Microsoft, Google often takes up more than 10++% EACH in tech funds!]

      OTOH banks are kinda too big to fail in SG ... govt will always step in e.g. bank consolidations in the late-1990s & early-2000s, shielding from punitive fines / reparations after GFC (unlike in HK, US, UK, Oz etc)

      Just need to be prepared that becoz of the way SG economy is structured, banks will usually get hit hard during our recessions e.g. AFC, 2001-2003, GFC ... and if I'm not wrong even our first big recession in 1986 ... Govt helped banks (and pty developers) by liberalizing CPF for private and commercial properties.

      Anyway wait so long liao ... just wait for few more months ... good chance for Big Sale before end-2019?!? Even if no 1-for-1 but got 30% discount also good! Hohoho!!

      Delete
  2. "Too big to fail" is also applicable to our portfolio management too and we bail out ourselves by cutting them into smaller size to sleep better.

    ReplyDelete
  3. Actually to be able to sleep better one must plan that even if stock portfolio lost to the tune of 50 %, One has only committed 50% or lesser of Personal's Net Worth.

    Besides at these time, dividends from stocks are usually at it's peak which helps a lot to ease the pain of 50% loss and cost of daily expenses.

    Anyway that should be my goal now.

    ReplyDelete
  4. DBS marching on to new historical high and made sellers look foolish. LOL!

    ReplyDelete

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