Missing out those large gains?
Tesla or Bitcoin?
Jelly!!!
How do we really feel when we cool down after some deep thought?
Are we still fooling ourselves?
When he missed those large paper gains?
He felt that he was that NOT smart enough! Alamak! Sianz. Sibei sianz! Walau!
Did he suffer any sleepless nights after seeing those assets price escalating or getting nightmares on missing those paper wealth?
NO!
What actually happened to him towards end 2008 during last GFC 2008/2009 when his real and paper losses escalated!
His emotions
From Alamak --> Walan --> Sianz --> Sibei sianz --> Worry --> Fear --> Sorry and bloody stupid --> Sleepless nights --> Nightmares --> Finally Bite the Bullets --> Heng ah! I have sold and Escalation in Lossses has ceased. No more nightmares. No more sorry! Only regrets!
It is far better to regret NOT smart enough to make more money in the market than to feel sorry and bloody stupid to lose back to Mr Market and even worse by losing our hard earned savings!
Read? 12 Years of Christmas and Two Lessons in Investing. (Good To Refresh Again)
Read? Can You Afford To Be Greedy When Others Are Fearful?
Posts
Hi Uncle8888,
ReplyDeleteAs many, including Buffett, have said ... it's not really about smarts.
Maybe 20% smarts. But 20% "luck" and 60% balls. LOL.
How to have balls? i.e. being greedy when others are fearful...
Some actionable steps:-
1. Always have emergency funds for 6-12 months of expenses.
2. Always maintain a risk-free to very low-risk liquid current account equal to 12-24 months of expenses. You drawdown from this account for your daily living & top up regularly.
3. If you're an average investor, never invest $$$ that you will need in the next 5 years, be it property downpayment, tertiary education, scheduled medical procedure, etc.
If you're an expert investor, never invest $$$ that you'll need in the next 2 years. 😛
4. KNOW yourself. Whether you need 70% cash on-hand to sleep like a baby, or you can snore even with 10% cash AND knowing that your other 90% can go to 45% in 1 month?
5. If you spend more than 2 min worrying whenever stock prices drop by -1% in a day .... don't invest. Period. End of story.
That's why when it comes to investing for the masses, I'm a socialist. Govt should have many decades ago instituted CPF as an investment arm for the people, and not just as convenient funding for GIC.
At least this is one thing that M'sia govt did right with EPF ... M'sians' savings in their EPF have both beat local inflation as well as the horrendous devaluation of the ringgit in the last 30 years.
PS: Balls encompass character, wisdom, temperament, mentality, courage, etc. 😂
Is Oppo going to make CPF an issue at next GE? Vote Oppo and change CPF to CIF ( Central Investment Fund) for members. LoL!
DeleteLOL! If they do that, they'll probably lose votes faster than the Zimbabwean dollar loses value! 🤣
DeleteIf you know the voters and know yourself, you need not fear the result of a hundred GEs --- Sun Tzu for politicians. 😂
@Spur:
DeleteFor #3, most investors in today's market would think that they are expert investors. Throw a dart at any company and it is sure to skyrocket. Invest in meme stocks --> sky rocket ---> I am such an expert investor.
In today's market, I feel that the difficult part of being a long term investor is being unmoved by the crazy stock prices and ignoring the feelings of FOMO, when these robinhood investors are making bank buying meme stocks and using these gains to actually put down money for an apartment, all in less than a year.