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!

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Thursday, 18 August 2011

Shake Off That Seller's Mindset (2)

Read? Shake Off That Seller's Mindset?

How many retail investors (not those BBs) are still holding high yield multi-baggers across multiple market cycles?

To shake off that seller's mindset in a falling market to lock in profit is very difficult as we always worry that our paper profit may vanish into the air. We may also like to think that we can easily buy back at lower price to keep the stocks back and realize the gains. You may think it is easy; but actually it is not.

You think you can easily buy back?

When you think that my Kep Corp at $1.44 (after split) in 2001 is cheap. It is actually not. Some one that I know got it cheaper at $1 in 1997/98; but he didn't hold it long enough and didn't buy it back.

Yes, in 1997/98, he might be young and inexperienced at 20+; but neither he didn't buy back at 2001 (Sep 11 WTC attack), 2003 (SARS), 2008/09 (Sub-prime). Even when he is older and more experience in the stock market, it has not made it easy to buy back. We may suffer from anchoring bias in our stock buying decision and it may be difficult to overcome it. Get it?  

How to hold high yield multi-baggers?

Think again. Learn to shake off the seller's mindset when the company is still growing and still paying you consistently high dividends. These are the stocks in your SWAN (Sleep Well At Night) investment account.
Posted by Createwealth8888 at 08:10
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3 comments:

  1. AK7118 August 2011 at 22:55:00 GMT+8

    Haha.. I didn't buy back because I never really paid much attention to Keppel Corp and buying back was not on my "to do" list. It was not on my radar, so to speak.

    If I was suffering from memory effect, I would not have bought a few lots at $3+/share in the last stock market crash. ;)

    Of course, I sold those off at $5+. It was really for a trade and nothing more. :)

    You have to understand my motivations for being long Keppel Corp those times when I was. ;)

    ReplyDelete
  2. AK7120 August 2011 at 09:48:00 GMT+8

    While re-organising my blog, I came across this blog post and I thought of your blog post. :)

    Avoiding the memory effect.

    I must do what you have done with your blog and get it more organised. There are more than a thousand blog posts now and moving on to two thousand quickly.

    It is like cleaning up my bedroom. Where to start? Argh! :(

    ReplyDelete
  3. Createwealth888820 August 2011 at 11:52:00 GMT+8

    Agreed. Readers friendly and ease of finding related blog posts is an important consideration when organizing blog posts.

    Where to start? Like buying stocks. Do it slowly. LOL

    ReplyDelete

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