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!

Currently; it about 54% to destination!


Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Saturday, 21 May 2022

Of Course We Are Not Afraid Of Losses Due To Our Position Sizing BUT ... (2)

Read? Of Course We Are Not Afraid Of Losses Due To Our Position Sizing BUT ...

Any Unrealized Profits or Losses will always affect our investment performance at ATH to next CRASH; and then how many years it will take for us to recover that CRASH from ATH to the next new ATH?

So is any unrealized profits or losses REAL or not?

It took 8 years to reach new ATH in 2007 from 2000 and just one year to drop -53% from an ATH; and then it took another 9 years to hit the next new ATH in 2018! 

9 Lost years!

How many lost years can we afford in the market?

So is any unrealized profits or losses REAL or not?

Don't ask retirees as realized profits always are their retirement income for spending!






7 comments:

  1. CW,

    Or moving the goal posts...

    Imagine last year our portfolios were at All Time Highs, we start planning to FIRE in 2022 and live off passive income from our investments - be it high flying tech stocks or cryptos.

    Now with our portfolios eviscerated by 40-50% in 2022...

    For youths in their 30s, that's not a problem; for old fogeys at 65...

    Hey! You now "roti-prata" you never into FIRE anyway... You love your day job!

    Why quit when we're doing what we love?

    Sure....


    P.S. Who are the ones who like to spin "unrealised losses" are not real?

    Financial advisors and money managers comforting/brain-washing their clients who lost money taking their fiduciary advice.

    Remember I presented to you over a 100 year period, stocks always go up?

    Diamond hands lah!

    And pray their bei kambing clients don't realise in 30 years' time, snake oils themselves would be retired, left the industry, or up lorry liao!

    ReplyDelete
  2. Yes, money in the bank( ok this one maynot be absolute any more, since so many scams) or your pocket then is real money where you can spend.

    "Unreliased lossess" are like self consolation if you want it to be heard good.

    When one is on the losing side, you will hear all these "encouraging" words

    ReplyDelete
  3. Hey man,

    wassup with all the angst in markets??

    I just saw the below chart of ETF in disruptive unicorns, decacorns, centicorns, millicorns (and maybe gigacorns) that will totally change the way humans look in 10 years ...... and it looks GREAT to me.

    On the way to FIRE!

    PS: My only regret is not putting more money into it. Someday when the above chart corrects meaningfully, I'll put in a 6-figure sum and HODL.

    ReplyDelete
  4. That's why besides using WL for B/B cycles investing, find need to be quite active investing around a core.

    Best using TD Ameritrade for 0% brokerage fee in & out trading around a core.

    i trade in local market too; but find the cheapest brokerage fees which really save me a bundle (about 3 times cheaper)

    Which i have very good home-ground advantage after 1988 till now experience.


    Trading around a core got some advantage, it is actually averaging down without pumping more & more new cash.

    Which can be devastating or a catastrophe when market suddenly crash.

    Or the trading core suddenly collapse (Yes even Blue/Black chips at times)

    Happy Investing.

    Shalom

    ReplyDelete
  5. Never stop looking at the Markets daily since 1988. Especially SGX. but that's only me - a fake self-stock-brokers since 1988.
    With out this, life could be more boring, huh?

    ReplyDelete
  6. Me prefers to sell too early better than regret got caught in a Bear's hug.
    Always think make money "Too Ho" liu.

    ReplyDelete

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