As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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

Friday, 19 November 2010

Portfolio Management - Returns and Risks of losing it back!

Read? earlier articles related to the topics - Portfolio Management

Don't be fooled into thinking that your success as a stock investor is measured by the increase in the value of your portfolio's holdings. It may be not. What you really want is to make the most returns with the least risk to your investing capital.

In simple term, you may need to fully understand the wisdom of the ancient Chinese's saying in investing: 见好就收. (It means that if there is a reasonable profit for yourself, don’t be greedy to risk further by wanting more, one should take back one's capital and its returns and leave some on the table for others.)


Don't ever let this happen to you!
Read another related ancient wisdom? 3 Ms of Trading – Mind, Method and Money - Part 3



5 comments:

  1. Hi CW8888,

    In theory yes, but practically it is not so easy. We are creatures of emotions.

    For many of us had experience of taken profit of a counter and then horror of horrors, watched this counter with bewildered, wide-opened eyes , soared to become 2 to 3 times multi-bagger.

    Of course vice versa, we can give back all the profit the counter has given us because of waiting too long due to our greed.

    Do you mind to give a practical example of a counter when you are satisfied to start taking profit?

    Thank you.

    ReplyDelete
  2. One such example is the recently sold counter:
    Noble

    ReplyDelete
  3. I can see you are treating this counter as a trading buy/sell.
    What I mean is a counter you purchased for "fundamental investing"; a supposed long-term buy. When will you be satisfied to sell this type of counter?

    ReplyDelete
  4. 200 EMA is known to be used by many long-term investors looking to exit or reduce their long-term holding in a stock.

    Read? Don't Forget 200 EMA

    ReplyDelete
  5. Hi CW8888,

    Thanks.
    I have very "koyak" history for short term trading. But long term trading is quite O K. I always imagine if I had put all my lost short term trading money in long term trading; WOW... my absolute ROC will be 2x better(Guestimate only).

    ReplyDelete

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