Uncle8888 has been there before thinking that he was that Little Genius in the market with a profitable formula, method or strategy and then "When Genius Failed"; it became his worst scenario and never ever again thinking he will be that Little Genius in the market.
We all are in the same Market making the most money from each other so Genius will come and take money from the rest of us!
Read? My Thought On Leveraging To Power Up Trading Income From SGX
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Uncle8888,
ReplyDeleteIt's ok "when genius failed" ... as long as one is humble enough to recognise it quickly & act to avoid having limb or head cut off. ;)
A FIRE blogger turned reit/dividend trainer had to scramble to deleverage & run as Reits dropped -35% in a month during the Covid plunge in Mar 2020. I had previously questioned his 10-year backtesting (too short) and his confidence in the robustness of his leveraged portfolio (surprising considering he also went thru GFC). But at least he was quick to admit & sent out urgent notices to his students so that they wouldn't get hit with SHTF.
Overleverage can also be of the mind ... when you overestimate your risk tolerance. Someone who puts 80% into stocks when he cannot stand a -10% drawdown is going to make bad decisions & sell out at the bottom of market crashes. And then miss out on the recovery & subsequent bull market. Only to buy back in near the top. :P
CW,
ReplyDeleteEh? The contra part disappeared?
Your broker come kick you is it?
Trading volumes in SGX already so sad...
Must give chance to our flesh and blood brokers!
I mean they are like our brick-and-mortar retailers; our days are numbered.
Take away contra, who needs flesh and blood brokers?
Is that why SGX has not introduced T-1 yet?
Anybody still trade through broker?
DeleteCW,
DeleteExactly!
High net worth investors are the only ones left who don't sweat the small stuffs. Especially when their dealer/remisier can provide them with the "edge" that's not available to retail investors who ride the ComfortDelgro bus ;)