Came across this and set Uncle8888 thinking loud too . Hmm ... and then .. To answer this question: How long? First, let us try to understand 3Ms in Investing: Method, Mind, and Money Management
Our Investing Mind: The Winner and Loser investing mindset and the way we as retail investor may like to think on winners and losers.
The Loser Investing Mind When we bought a stock based on our investing Method; we will expect our self-defined decent yieldwith some capital gains in the near future; otherwise we will be waiting at the sideline for the "right" entry price.
But after we have bought; the stock price went south and farther south. Soon; we will be holding on this big loser. When we have held on to big loser year after year. It is matter of time, one day; we will change into Loser investing mind - I want to get out when I can! That day has finally came when the stock price suddenly surges on good corporate news and begins to trend up, up and away. Now the uptrend soothes the Loser investing mind and soon looking to get out at the "right" time based on our Method e.g. "over-valued, Heng arh or whatever reason!
The Winner Investing Mind Taking the same example as in the investing scenario in the Loser investing mindset i.e. When we bought a stock based on our investing Method; we will expect our self-defined decent yield with some capital gains in the near future; otherwise we will be still waiting at the sideline for the "right" entry price. But; the stock price went south and farther south and then we will be holding on this loser. However, the main difference is that this stock price has managed to recover in just a few months or less than one year and soon we are sitting on decent yield and good capital gains. Winner investing mind in action now! Then year after year; we are collecting our self-defined decent yield and also sitting on nice capital gains. Sell for capital gains? You mean "Kill the Golden Goose for its Meat"? Why kill a Golden Goose who lays Golden Egg when we are getting infinite yield? This is how Winner Investing Mind thinks! How Uncle8888 knows?
Last updated : 14 Sep 2020
I am 64 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 21 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
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