Sunday, 26 November 2017

Stock market Volatility Is NOT Risk!


This statement has to be fully explained!

 Stock market volatility is NOT risk is ONLY applicable to those retail investors NOT doing any form of leverages AND DON'T depend on their investment portfolio for draw-down to supplement or fund their annual household expenses AND they still have war chest to fight as market continues to trend lower AND they are also NOT afraid of sitting on gigantic gains when market turns in their favor.

 The days when we turn into depending on partial draw-down on our investment portfolio then Volatility becomes risk!
Read? Peter Lynch on His Secret to Superior Returns (2)

 Forced selling during market low to cover any expenses is a terrible and horrible wrong thing to do as long-term retail investors over market cycles!


Show Uncle8888 your money management, position sizing and firing strategies. He will give you his comments for you to go up Bukit Timah or Mount Faber Hill next weekends to think it loud about it.

 Read? 3M's - Method, Money, Mind (5)

3M's - The Circles of Competency as long-term retail investors over several market cycles. How to win this money game!








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3 comments:

  1. RayNg26 November 2017 at 16:45:00 GMT+8

    Just kapo to comment...

    I read your 3M diagram and it tells me that Method is the most important as it is in the center and a bull eye.

    I know you're trying to illustrate that Money Management is the most important, by showing the biggest area.

    So how? Can show a MM in the center but occupy a bigger area than the other 2?


    p.s. previously you shown:

    1 .A funnel diagram that Method is on top, follow by Mind and MM at the bottom.

    2. A Trapezoid, that the with Mind on top, middle is Money and bottom is Method.

    You used to said Mind is the most important, but now Money Management is the most important?




    ReplyDelete
    Replies
    1. CreateWealth888826 November 2017 at 17:14:00 GMT+8

      Mind over money or Money over mind?

      When we are no longer have any earned income from human asset; it is Money over mind. In the investment blogosphere, we can see who are steady ones. Mind or Money? :-)

      Delete
    2. RayNg26 November 2017 at 17:28:00 GMT+8

      Ya lah.... When we retire and no more active, wealth preservation is most important.

      So, it should Money over mind lor.

      lol

      Delete