Read last transaction? Kep Corp: Sold $10.14
An illustrated example on his short-term trading and long-term investing strategy on Kep Corp ...
Actually, Batch 3 at $12.14 is a short-term trading mistake that turned into long-term investing as Uncle8888 doesn't have any stop-loss strategy.
It is never that easy to buy back at lower price!
Bought at $12.14
Low can be lower!
Last sold at $10.14
High can be higher!
No chance to buy back till now.
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Just curious how you manage holding long term and short term trading?
ReplyDeleteI guess you have 2 separate account with different name.
Good question!
DeleteYou are right. I use CPF Investment Account to hold long-term positions.
Before 55, I always deem it as paper money. Can see. Cannot touch. So it is less emotion.
At $12.14, it is not an investment mistake.
ReplyDeleteA long term investor prefers to stay invested in the growth of the company and can immediately enjoy its high returns rather than stays procrastinating and missing out.
At $10.14, it is not an investment mistake.
It allows one to locked-in profits and re-use the proceeds for equally good or better investment opportunities.
It is normal for investor to temporarily lose sight of the bigger picture.
On the hindsight, these were wonderful investment decisions executed - both investing at high price and locked-in profit at lower price.
Keynes :-
Finding a balance between focusing on long-term investing and capitalizing on short-term opportunities (while controlling emotions) is vital to successful investing.
"capitalizing on short-term opportunities" can become "long-term investing" too if the short-term is define by you as 3 to 8 years cycle. It is considered as short-term in terms of you have a lifetime to invest(if God permits you longevity).
ReplyDeleteone of the most overlooked point when one is trying to emulate another investor's stock holdings is that ... there is no one investor having the same holding period definition.
Deletei had a friend who told me he so far had make money in investing, but when i dig deeper, he confess that those stocks he made are from his CPF account, and the reason is, its money he can't touch, so hack care, well bottom line, he make money.
ReplyDeleteon the other hand, those stocks he play (his own words) using cash money, which is a seperate accounts, lost money and he had no idea how much exactly it was!
i wonder did he understand why and how the difference the 2 account had perform differently.
but i do believe that his CPF account had made some really good money from the way he discribe, buying from low price and hold for many years without selling a single share so far. it is also a good policy from the govt who my friend told me that he is unable to withdraw any of his winnings from the CPF account.
Deleteif he could, he will probably sold most of his investment.
Bingo!
DeleteFor CPF Investment Account, realized profits are locked up. CPF investors may NOT have enough "cash" in investment account to buy back to trade again.
Dividends are locked up to compound interest at 2.5%. Over long run, it not peanut!
Read? CPF OA rate @ 2.5% on regular CPF investment income peanuts return???
sadly, my CPF account is like zero or near zero haha...and i have no clue whats the rules are, i heard there are many many many, what minimum sum la, investable sum la. no need for me to know haha..
Deletewow, even the dividend portion are lock up for compound returns and on top a 2.5% interest!!!!!!!!!!!!
its eleghent!!!!
too good to be true, there must be a cap to it, right?
Deleteotherwise, all the millionaires will pore thier money into the CPF.
well, if the story of my friends investment is true, which it is, what can we learn from it.
Deletemoney that you love dearly, which is cash on hand, its bad for investment.
money that you hate (or at least you don't care about), its good for investment!
it is very true in trading that i can tell you.
CPF is not a bank. Cannot anyhow put money leh.
ReplyDelete