One of the most enduring sayings on Wall Street is "Cut your losses short and let your winners run." Sage advice, but many investors still appear to do the opposite, selling stocks after a small gain only to watch them head higher, or holding a stock with a small loss, only to see it lose even more.
Read? Peter Lynch on His Secret to Superior Returns
All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out. - Peter Lynch
How about "Cut your losses short and let your winners run"???
No stop-losses! Die pain pain har?
How about to suit those who by nature who like to believe in "salted fish can turn over" one day or one day salted fishes decay to ashes! Maximum loss is 100% of invested capital! Cry until no tears hor!
Cut your losses short and let your winners run
CAP your losses and take Panadols for Heartache AND let your winners run and play round and round with your winners!
It is actually Short-Term trading or Wrong-Term investing AND Long-Term investing strategy! LOL!
Be OURSELVES since we are investing and trading for ourselves . We should be discovering what really work for us!
21 years from Jan 2000 to Nov 2020 across market cycles of Bulls and Bears
COVID-19 New stocks pick over 8 Months from Feb 2020 to Nov 2020
Finally, when market turns around, this strategy begins to show some truth. LOL!
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Another longer-term view of the stock markets...
ReplyDeleteChart of global stocks divided by 30-yr Treasuries
Shows people's preference to own risky stocks or to own safe bonds.
A bullish MACD cross from below the zero centerline just occurred end-Oct 2020.
This has only occurred 4 other times in the last 27 years: 2003, 2009, 2012, 2016.
Were those good times to invest in risky stocks??
You decide!
Different people, different situation! :P
Applicable to STI? LOL!
DeleteJust think back to those years 2003, 2009, 2012, 2016. Kekeke!
DeleteHi temperament,
DeleteI know very few people who are active in the markets and were around during the 1987 crash. Were you in the stock market during 1987 massive one-day Black Monday crash? Till today, the magnitude of that crash still has not been exceeded.
Quite an achievement if you are active and can survive 1987 black monday, 1997/1998 Asian financial crisis, 2000-2002 tech bust, 2008 global financial crisis :)
Hi temperament,
DeleteMaybe 1987 crash was God's blessing in disguise for you.
A bad beginning in the journey in financial markets is actually a good start. It makes a person appreciates risk. I lost substantial money in my first few years.
A good beginning in the journey is a bad start. The person thinks he's a genius and proceeds on to lose his gain and more in the end.