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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Value Investing
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Technical Analysis and Charting
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Saturday, 25 February 2017

Do You Know What Is Market Cycle and Sector Cycle??? (2)

Read? Do You Know What Is Market Cycle and Sector Cycle???

Read? No Cut Losses & Multi-baggers For Long Time (2)

Cut losses fast and live to fight another day!

It could be true for trading for a living as they depend on cash flow to put food on the table. But; for retail investors who put food on the table from their earned income ; it is a different story!

Depending on who you ask?

Cut losses fast and live to fight ANOTHER day! 

For traders, they have to fight every other day and definitely have to fight another day; otherwise they will starve!

But; for retail investors over market cycles and sector; how true is cutting losses into holding MORE cash when you have war chest?

Do you have to live and fight another day? or every other day?

It is more likely when retail investors panic and cut losses into holding MORE CASH; they are more likely to stay away from the market for a long time. 

Once we cut losses into realized losses; it is very hard to recover by holding cash. We can't never recover from holding cash. The cash has to be invested again to recover from losses.

But; what Uncle8888 has observed so far that many retail investors after cut losses; they will stay away from the market far too long to recover.

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