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!

Currently; it about 54% to destination!

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

Tuesday, 8 February 2011

Portfolio Management - Stop Losses? (2)

Read? Portfolio Management - Stop Losses?

Stop losses: Do or Do not. Don't doubt! - Createwealth8888

If you strongly believe in your technical analysis skills and also trust your favourite technical indicators then you should act on good faith, take that stop loss; go home and sleep.

If you are like me don't believe in stop loss, then how do you control the damages to your capital?

Instead of using STOP LOSS to manage risks, I manage risks from different perspectives. I have trained myself very hard to look at Portfolio and not at stocks so a few falling stocks may not impose a big risk to me and don't bother me too. When it becomes necessary; I will write off losing stocks as zero value and take that losses in the Realized P/L. There is no point looking at them as it does nothing to improve your investing skills. Just move on!

If magically the dead stocks somehow resurrect; then I will sell them and write back as profits.

Portfolio = Investing Capital + Realized P/L + Unrealized P/L 
               =  Current stocks + Cash available for investing

There are few important things to note:

1. I don't use any Leverages

2. I am using cash that are not needed for next 5-7 years.

3. I have enough emergency fund.

4. I will only hold on to falling blue chips that Temasek or White Knights are likely to come to rescue

1 comment:

  1. Hi CW8888,
    Well put.
    No use crying over spilled milk.
    Anyway, we should be prepared for some spilled milk.
    I believe even WB have some spilled milk.


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