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.

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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.

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Sunday, 4 March 2012

Are retail investors the real suckers in the stock market?

Just For Laugh ....

I have came across a quite number of bloggers in their blog posts like to highlight that retail investors are the real suckers in the stock market that is buying high and selling low. Is this fact or fiction? But, I know that some big investors lost in big way and lost far more than many retailer investors adding up.

If you don't believe it. Read this book? The Billion Dollar Mistake!

One thing for sure, Createwealth8888 as retailer investor in the past decade didn't panic and sell at market  low as he wears tight underwear and not scare of his ball dropping down.

10 comments:

  1. CW8888,
    You are the uncommon commoner. >90% people lost money in stock market. When panic, everybody rush to the door/window and jump, thus buy high sell low lor.

    Of course, big shark may also lost money. Lehman bankcrupt right?

    Ray168

    ReplyDelete
  2. I am not that sure cw8888. I do respect you and i am not saying that you are bad. However, from what I have heard, i have heard of a lot of common people doing well in the market.

    They keep their approach super simple. Like, I have this guy in my office who bought 500 Las Vegas Sands shares at $1 odd and he has hung on to it for 2 years + now.

    He does not have any interest in cash flow, analyst report etc. His whole logic was that this was the total hong bao he got for CNY from all his uncles and aunts. Not married, so no worries about future.

    When asked whether he wants to sell, he says he will sell some at time of marriage to fund expenses.

    Keep it super simple, i have seen that this works

    ReplyDelete
  3. "Keep it super simple, i have seen that this works"

    Exactly. But very, very few people can do it.
    From WB.

    1) Rule # 1 do not lose money.
    2) Rule # 2 refer to # 1
    3) Not until you can manage your emotions, you can manage your money.

    From a book i adopt as my Main Investing Principles when i first started to invest 23 years ago:-
    {No one can know what MR. Market is going to do next. But after Mr. Market has come tumbling down, you witnessed it right? Right!}

    There goes the beauty of market timing the BEAR/BULL cycle of investing; if you have your guts, patience, and of course some homework. Most important guts and patience and money management; and a little homework at least.
    i have been doing it for 23 in fact 24 years already. Still survive and not doing too bad but not enough to retire from the Market.

    i believe/agree now with coconut that there is no such thing as "FF" or "Retirement". i believe the moment i stop wanting to learn from somebody or something, is the day i am going to die. Or my brain has been dieing liu.(Dementia). Hope i never reach that state of Dementia.
    Shalom & Amen.

    ReplyDelete
  4. Does 3 strikes make a good bowler?

    Success is your own worst enemy. Sometime, it is just 100% LUCK that you got it right.

    Like bowling, I am a damn lousy bowler, but sometime due to pure LUCK, I would have a strike every now and then, I have only ONE TURKEY (3 strikes) till now and it never happen again. WHY LEH?

    The difference between the REAL PRO and LUCKY PRO is the consistency, the real pro will have few strikes or even turkeys in almost every game; while, the lucky pro may also have some strikes but often also ending the game with none.

    Same like trading or investing, a few profitable ventures does not make me a real pro, make NO MISTAKES about it. PRINTED BOLD IN MY MIND!!!!

    ReplyDelete
    Replies
    1. Yes, very true. But hay, is Bear/Bull bowling cycles consistent enough? Do you keep on changing your trading/investment priciples?
      Do you swicth to the latest market favours? Then you are what i call, "A man of no principles". Then it doesn't matters what you are doing now, everything is of no principles to you.

      I admit(this B/B cycle) i have made one mistake of not investing in an economy cyclical counter due to switching to income dividend investing. Because of this i have not made as much money as before. i should have been more "consistent" in my investing. i should at least continue a little in investing in my favorite economy cyclical stock. i have always invest in this stock except this cycle. There you see so much for "consistency"

      Delete
    2. wow what happen?

      temperament, if you had made money in investment that itself is an achievement. how many really make money in the stock market? very few.

      all we can do is do our best, turkey or no turkey, we still got to play the game. who cares what other can achieve and think. if we see improvement in our own investing and our understanding of ourself, that is enough to cerabrate.

      Delete
    3. 1) Temperament,

      Again your honesty shines through. By constantly reflecting and calling a spade a spade on our hits and missus, we will not fall into hubris. Free bonus exercise for the brain too!

      What's the difference between a man with no principles and an equities man-whore? Man-whore got principle! No kissing on the lips ;)


      2) CW8888,

      I frighten by the TV ad on dementia... I think must start to play Sudoku more? Or Mahjong? Must exercise the mind, not just the body. Die! I now kia si?

      Delete
  5. I agree with CW8888, I feel that a large portion of my investing gains which are realized are due to fortuitous timing.

    I may be wrong, because i am relatively a investing newbie, have only 18 years of experience, so, maybe, when i have around 40 years of experience, i can conclude on that.

    The Bear/Bull cycle is great in concept, but very very difficult to determine unless one has perfect foresight, which no one has.

    ReplyDelete
  6. "fortuitous timing." ,LUCK, Blessings from HIS GRACE, or whatever you want to believe..

    Ha! Ha! Very true. Buying an investment is always buying a "RISK" and not 'RETURN". The best you can do is to control the level of "RISK". You are never able to control the outcome of the Return. If you try by all means, Changi FOC Hotel may be your next home.

    A little strategy of "controlling the amount of risk" is to buy your favourite stocks only after MR. Market has announced to the world, "i am in my extreme pessimism mood". i am sure Ah Fook also can distinguish MR. Market's mood by then. Can you? Ha! Ha!
    Shalom!

    ReplyDelete

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