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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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, 10 May 2015

Patience In The Stock Market??? (3)


Read? Patience In The Stock Market??? (2)

Uncle8888's patience in the stock market cuts both way. His attitude towards losses is very different from commonly known or practiced concept.

He is very patient with both winners and losers. He doesn't have Stop-losses. He still believe in salted fishes becoming alive one day.

How to treat losses and move on without carrying the sampan all the time?

If really salted, he will write down the losses to ZERO stock value and move on. These losses are NON-CASH items and only impact his portfolio performance measurement when he still have big war chest. But; when his war chest is very low or empty then it is different ball game; he will need to raise cash. 

He will cut these zeroed stocks and still "profitable". LOL!



Read? Who is the Other Twin Sister of Stop-loss who is not commonly known???


"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." ~ George Soros


What is the cost of his attitude?



When he is deadly wrong, his maximum loss is 100%; but when he is seriously right; his win is N x 100% and still counting

So what is wrong with his attitude?


2 comments:

  1. To stomach the $0 salted fish, there must be at least a few abalones in the backyard right? ;)

    ReplyDelete
  2. Cut loss will let you take a step back , preserving your capital before you take another dip into the water .. Remember if you lost 50% of your capital, you need to make 100% with your balance capital to get back you original amount..

    ReplyDelete

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