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

Wednesday 31 December 2008

Who Took My Wealth?



Loss of -34.2% of nett worth. From the high of 93.2% to close at 58.98% for 2008.

Who Took My Weath?

No 1. Success can be one of life's worst enemies. It engenders overconfidence and, as a result, one tends to let one's guard down - in some instances, to the extent of recklessness

I have met my worst enemies in 2007, and failed to recognize them sooner, and thus the downfall in 2008. I have previously survived two major corrections with heavy losses and recovered with even more nett profits. But, this Bear killed.

No 2. Leverage

I use a wheelbarrow to lift more dirt than I can carry by myself, I am employing leverage. Leverage involves using a tool to increase my power. That tool is Contra Trading, the tool of leverage is "no upfront money". Just loaded up.

But, I have put too much dirt into a wheelbarrow, and broke my back trying to lift it. Too highly leveraged, and did not have enough cushioning to hold out and when the market turned against me and forced me into liquidation — game over.


Going forward, I WILL ONLY LIFT dirt with my two bare hands. Trade and survive like an American Cockroach. Eat when there is food to be found, and can survive without water for 1 month and without food for 3 months. Goodbye 2008, Welcome 2009. More food to be found. Cheers.
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