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, 15 January 2016

What do seasoned retail lnvestors fear the most?


Read? What do Traders fear the most?

You know his answer. Right?

What do seasoned retail Investors with adequate level of stocks holding and strong war chest fear the most?
  


Slowly scroll ...
















War Chest: Collect interests

Stocks holding : Collect Dividends

  So, we either collect interests from our war chest or collect dividends from our stocks holding.

Flat market: Collect dividends from our stocks holding AND collect interests from our war chest.

Falling market: Buy slowly, reduce our war chest, reduce interests but increase dividends.

 Rising market: Sell slowly, increase our war chest, increase interests but reduce dividends.

 How fearful can it be?





Posted by Createwealth8888 at 22:05
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9 comments:

  1. Createwealth888815 January 2016 at 22:58:00 GMT+8

    Revise

    Flat market: Collect dividends from stocks holding and collect interests from war chest.

    Falling market: Buy slowly and convert interests to dividends

    Rising market: Sell slowly and convert higher capital gain to collect interests.

    :-)

    ReplyDelete
  2. Createwealth888815 January 2016 at 23:24:00 GMT+8

    War Chest: Collect interests



    Stocks holding : Collect Dividends


    So, we either collect interests from our war chest or collect dividends from our stocks holding.


    Flat market: Collect dividends from our stocks holding AND collect interests from our war chest.


    Falling market: Buy slowly, reduce our war chest, reduce interests but increase dividends.


    Rising market: Sell slowly, increase our war chest, increase interests but reduce dividends.


    How fearful can it be?



    ReplyDelete
  3. Singapore Man of Leisure16 January 2016 at 08:38:00 GMT+8

    Idiot.

    That was supposed to be my "part 2"...

    Oh well!


    Eh? Somebody now talk big big after being massacred in 08/09 ;)

    I guess what didn't kill us will make us stronger?

    Now that's learning from real people real experiences! LOL!


    Now some "bei kambings" have wised up.

    If one does not have the "buffer" of past realized profits and dividends received, cannot follow your entries without a significant better entry price than yours ;)

    You got a lot more bullets!

    ReplyDelete
    Replies
    1. Createwealth888816 January 2016 at 09:28:00 GMT+8

      No "bei kambings"

      Must be seasoned retail investors or "EX-choa ta/hei kambings" with adequate stocks holding for sell slowly and strong war chest to buy slowly.

      Why need to be so scary?

      Delete
    2. Singapore Man of Leisure16 January 2016 at 10:39:00 GMT+8

      CW,

      That's why I said you don't need "precision" to re-enter DBS - $15 or $16 does it matter when you have previously sold above $20?

      But for someone sitting on unrealized losses in DBS, buy slowly may not work if the prices continue southwards.

      New unrealized losses compounding on to existing mushrooming unrealized losses, now that's like a big snowball growing bigger and bigger until we capitulate under its weight.

      And the moment we do so, the market makes a strong mean revision recovery...

      That's enough to make someone swore off equities forever!

      Delete
    3. Rainbow16 January 2016 at 11:47:00 GMT+8

      Must say the same for Keppel. So much blood spill. *curse*

      Delete
    4. Rainbow16 January 2016 at 11:52:00 GMT+8

      There's three critical time points here - first bought time point and price, sell (slowly) prices and current buy (slowly) prices.
      It might also end up as a zero sum or negative sum game.

      Delete
  4. Singapore Man of Leisure16 January 2016 at 08:49:00 GMT+8

    temperament,

    Interestingly, most veterans who have survived more than 1 or 2 bull/bear cycles are sama sama.

    That's why I wrote this post to remind myself:



    Don't fire until you see the whites of their eyes

    ReplyDelete
  5. Rolf Suey17 January 2016 at 21:10:00 GMT+8

    Timing still counts unless u r super good in identifying value stocks like WB, who most people think that they r.

    I agree with SMOL that those stocks already suffered hugh u realised losses, if u keep averaging down, then it can be capitulating eventually if they revert to the mean....

    So it's better to be selective in stocks. Some see white then fire all, some fire small regularly

    ReplyDelete

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