Often we hear this saying in the investment cyberspace or social media : You invest what you can afford to lose and more often this is the general advice to newbies. The truth on the ground practice by serious retail investors is ... You speculate what you can afford to lose. It is speculating and NOT investing! You look carefully at many serious retail investors and investment bloggers on what they are doing with their investment portfolio and SINGLE stock positioning and portfolio management. It is NOT uncommon for these retail investors to build on single stock position up to X% orinvestment portfolio up to XX% of their net worth! X% or XX% of their net worth is NOT something they can afford to lose. Right?
Newbies haven't earn their right to call themselves as investors so they are in fact just speculators. Right? So the advice is actually : You speculate on what you can afford to lose!
Last updated : 15 Sep 2018
I am 62 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. Eldest son and daughter are now working and youngest son still in his 3nd year Uni in SUTD.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I am now executing my Three Taps solution model to maintain sustainable retirement income for life till 2038.
Disclaimer: Stock trading involves significant risks. Create Wealth trader is not a licensed Investment Adviser and will not be responsible for any losses which you incurred. You are advised to always do your own homework before making any trading decision.