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!

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Friday, 12 September 2014

How did we lose money in investing??? (2)



Read? How did we lose money in investing???

You can call it whatever.

Still okay!

  
You still call it scaling-in or dollar cost averaging?

Good luck! God bless! Buddha bless!





























Chinese's saying ..

Ten botaks. Nine are rich. You pray hard that you are not the 10th botak!



Posted by Createwealth8888 at 13:52
Labels:

7 comments:

  1. Money Honey12 September 2014 at 17:47:00 GMT+8

    Do you mean ... nine are poor?

    ReplyDelete
  2. RayNg12 September 2014 at 18:13:00 GMT+8

    Let's discuss ...

    History reveals that market will go back up every time it crashes. It is like to returns stronger.

    Assuming that the market has crash 50% and you are are still holding blue chip stock (some of the STI components). Your BC stocks still above the water despite the 50% down.

    Will you buy and accumulate more of your BC stocks during this bear period? Rightfully the answer is yes because you can buy more at cheaper price.

    If yes, then aren't you average down?

    If no, then you're missing the golden opportunity to accumulate more with dirt cheap price.

    So, average down is not a bad strategy.

    Of course some will sell their holding before the crash. But how many people done that?

    In reality, most of us sell during the bear to "cut lost/profit" and dare not buy during this period. We buy when the market has recover >50% from valley.

    ReplyDelete
  3. Createwealth888812 September 2014 at 18:29:00 GMT+8

    Average down a basket or handful of stocks or blue chips is okay.

    Some die die will average down a single stock like I can't be wrong!

    ReplyDelete
  4. Anonymous12 September 2014 at 18:55:00 GMT+8

    Be careful. STI COMPONENT BC can be kicked out and replaced from time to time. Even the about more than 100 years old FNN has been replaced because of a Thai tycoon. Also if you average down SMRT , NOL when they were still in the STI Index, will you be O. K. now? i am not so sure.

    ReplyDelete
    Replies
    1. RayNg12 September 2014 at 20:21:00 GMT+8

      Yup, we must be extra careful not to catch falling knife average down. It is easy to apply, but not simple.

      Agree that some BC stocks do not have good FA. Some of then in cyclical industries.

      So when we must only average down on good FA companies.

      Delete
  5. Anonymous12 September 2014 at 19:02:00 GMT+8

    Also a lot of people or most people think the most dangerous time is "Bust (Bear) Time," but actually the the most dangerous time is "Boom (Bull) Time". No?
    Why?

    ReplyDelete

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