I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

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Friday, 3 August 2018

The Psychology of Investing Biases


Many of us may have already learnt and put into practice a few if not all the known psychology of investing biases. 

 How about taking profit is never wrong; but missing those huge capital gains and dividends over the following years?

 What kind of investing bias is this?

 Anyone knows?



Posted by Createwealth8888 at 21:16
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1 comment:

  1. Unknown4 August 2018 at 02:22:00 GMT+8

    Loss aversion ... cutting winners short.

    Kiasu mah ... Kekeke! Don't let a win turn into a loss haha.

    Taking profit is ok, but ideally should be done when the asset is expensive e.g. within 10% of its highest historical valuation, or current valuation is +2 or +3 standard deviation from its long-term average.

    Rebalancing is 1 method for this ... But not too frequent...

    Or for trend followers ... when a predetermined trailing stop is hit...

    Spur😁

    ReplyDelete

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