Once we understand that market cycle is real. We can get ourselves badly hurt. But, once, we are badly hurt by the market, we will soon learn how to handle future market cycles better. There will be several market cycles in our investing journey.
For most retail investors, it is not so much about acquiring more and more superior investing method to pick ever winning stocks.
No! It is not!
The Past is not the Present. The Present is not the Future.
It is not easy to do that. But, we can choose to focus more and more on our Mind and Money Management. These are the areas where we do have some control. Soon we will learn the truth meaning behind buy slowly during DOWN cycle and sell slowly during UP cycle so that we are in better control of our money according to the rhythms of the market.
Read? Strengthening War Chest From Our Investment Portfolio??? (2)
If you want to know how Uncle8888 was feeling during the last Big Bear, GFC when his investment portfolio was down -53% from the peak; but he still managed to continue investing. Even when we are badly down now, don't give up! Our retirement income for life will depend on our investment portfolio and how well we manage it in the future.
The Past is not the Present. The Present is not the Future.
We will learn and be smarter at every market turning point. We will do it differently the next time!
How different can you be?
Read for yourself what Uncle8888 has learned and done in the last 6 months of 2008; and also in 2009 and 2010.
In 2016, his investment portfolio will be riding the same volatile market cycle DOWN; but this time is different. He doesn't really feel that gloomy anymore. He knows that market will always recover. It is just another market cycle to ride or another one or two more before he leaves this world.
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Hi CW,
ReplyDeleteWhile I agree the game must continue and dun give up, but it do take more than just effort/hardwork. It need some deep soul searching also.
Sometimes we also have to ask if the stock market is really suitable for us? It's just like some people are just not the cut to be businessman. They start a biz, lose money, re-start again, fail again n it repeat! Maybe sometimes it's better to be just an employee and do it step by step! Or some people is better with property or work?
Find what is suitable for urself! The problems of today can just be the media/blogosphere portrayed that stock market can be the quickest way to earn money and be FI. This is the biggest fallacy that most misunderstood!
Fully agreed! If one cannot see their net worth swing wildly up and down across market cycles; it is better to focus on earned income and higher saving rate as we don't lose BACK our earned income to our bosses during bad times. What we have earned we will keep for ourselves!
DeleteIn fact, I have known a few colleagues who don't want to invest but they are great savers! They can save enough to last through their retirement life with their lower spending rate.
DeleteTotally agree. Save to retirement, old school but what's the problem? Nothing wrong!
ReplyDeleteWhichever they feel most comfortable and happy.
Maybe if some of ur saver colleagues start aggressively investing in stocks, they may never retire and become not only slaves of work but slaves of stock market... lagi worst!
seem like talking about me.
Deleteslaves for stock market.
It's a individualistic mind games where the Market. The one with the calmest and strongest mind survives. Coupled with a method that suits you.
ReplyDeleteNowadays got this thing known as SSB for great savers! Why invest?
Delete