Nett worth survived Aug 07 major correction, and now back to the previous high. Important lessons learnt as follows:
1) NEVER, NEVER touch profits. Re-invest these profits back into the market and let the magic of compounding works its wonder.
2) When the market dragged down those earlier high performance stocks, it is also time to look hard at our portfolio and sell those laggards, hit the bullet, take realized losses, and use the recovered capital to buy into those fallen stars and then wait for market recovery. This strategy worked well in both Feb 07 and Aug 07 crashes.
No comments:
Post a Comment