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

Sunday 9 February 2014

Risk and Stock Price Volatility: Many are still confuse???



Risk and Stock Price Volatility: Many are still confuse???

As long-term retail investors, our risks come from permanent loss of our investing capital or loss of holding power causing us to realise our paper losses into permanent losses.


Stock price volatility itself is NOT a direct risk to our investing capital; but it will seriously affect the performance of our investment portfolio total returns. (e.g. CAGR or XIRR)



Read? Permanent Loss of Capital


Read? When a Giant Gain Causes Pain (3)




The Moral of Story

Don't ever come to the stock market and calling yourself  "long-term" investors when you actually need to draw-down your money sometime over the next few year to fund certain expenses e.g. housing, wedding or children university tuition fees, etc


The Stock Market by nature is volatile!

See it for yourself.

Selling at the wrong market timing is bloody painfully!





















2 comments:

  1. CW,

    And that's when we learn from "needle pricked the skin" way that's why emergency fund should be distinct from opportunity fund.

    Not just us retail. Institutional investors felt the pain of the needle too when they have to liquidate crown jewels during margin calls or to meet fund redemptions...

    ReplyDelete
  2. In money management, we call this idea spend within your means; better still spend below your means. Another words cash flow management is very important. Even a viable business can shut down due to cash flow problem.

    ReplyDelete

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