This afternoon; Uncle8888 has kopi session with one new Starfish who wanted to restart her investing journey at the next Bear market and wanted to hear directly from Uncle8888's mouth on surviving market cycles and of course with paper and pen.
Here is the real investing lesson on market cycle for newbies!
Starfish started trading (investing) in 2015 and winning easy money and progressed into contra trading and winning easy money all way to 2007. More or less like Uncle8888. LOL!
Read? Contra Trading. Damn Shiok!!! (2) - Refresh
See closely the chart below for Starfish's starting and ending point and you may understand the moral of the story.
Starfish emotionally couldn't take the losses farther; cut losses and completely out of the market till today. Total losses more than $100K!
So what is the moral of the story?
If you haven't feel the pain in the market is that you haven't lose big enough.
ReplyDeleteSome people lose abit and screaming in pain.
ReplyDeleteMost call us gamblers!
Lose abit and screaming in pain. Better bet ToTo when Jackpot prize hit $4m and above. Don't touch any trading or investing.
DeleteActually it's statistically better to bet toto when jackpot is $1M or $2M.
DeleteWhen prize money too big, chances get reduced drastically as everyone cheong to buy. LOL!
Spur,
DeleteWhat you've said is "crowd herding psychology" in a nutshell.
Bitcoin below USD 1,000 no one interested; price above USD 10,000 monkey see monkey do!
Never understimate the allure of HIGH prices!
Chance for an individual to select winning numbers is the same.
ReplyDeleteBut chances of multiple winners higher when prize money is big & there are lots of publicity. ;)
Of course, there's always divine luck like that fellow who won $8+M all by himself lol!