What We Cannot Recover From Big Losses In Market Crash - The Lost Years!

We often read from comments/advices in investment or trading forums that we can recover from losses if we are younger. 

Don't worry! Keep trying. Keep investing or trading! You will recover your losses one day!

While we can recover from financial losses in the market by injecting new capital or switching horse and/or recycling capital to recover from past losses; but we can't never recover from those lost years from an ATH to next new ATH!

The LOST years!

Uncle8888 learnt this lesson!

He spent 10 out of 23 years (about 43%) in the market just to recover the fall from ATH in 2007 to the next new ATH in 2018.

Now; he often stares at his stress test of his portfolio and don't make that same mistake in 2007!

Read? Make hay while Sun shines and not pulling out winter weeds

Strengthening War Chest From Our Investment Portfolio??? (3)

uncle

i have increased my war chest and market rebound 


Read?  Strengthening War Chest From Our Investment Portfolio??? (2)



What you may not realize it!

 
Making hay in Summer while Sun shines or by pulling out weeds from Autumn Garden?


Same same but different when you get it wrong!


Making hay in Summer while Sun shine but somehow it went wrong. It has been a long Summer!

Sianz!

May be sibei sianz!

So?

Summer will never go on forever. One day it will come back to me and I will make back those lost paper profit opportunity!


Pulling out weeds from Autumn Garden but somehow it went wrong. Robins come, new leaves come! No Winter but unexpectedly an early Spring! WTF!


Let us honestly face the fact. It is extremely hard to recover our realized losses or regaining back our expected profits that were lost back to Mr. Market by sitting on cold hard cash.

We are expecting Winter but an early Spring unexpectedly came! 

Our investing mind may be still stuck in the Autumn. 

Can we expect our investing minds to change that fast?

Sianz?

Sibei sianz?

May be this  ...


 

Investing as retail investors when you Can say No you sleep better

Read? Life is Better when you can say No

(1) Can say No to Fear over market volatility! Why scare when you have war chest to deploy? Right?


(2) Can say No to pulling out Winter Weeds. Make Hay while Sun shines then you have bigger war chest than pulling out Winter weeds. Yeap! You are back to (1)


Volatility is always there! 

When you Can say No; you sleep better. Right?

How Come You Don't Need To Watch The Market???

One ex-colleague knew that Uncle8888 was busy running here and there and asked him : How come you don't need to watch the market?

Hmm .. First thing first!

Uncle8888 is not a day trader trading for a living. 

With his investing strategy of (1) No stop-loss and (2) Make hay while Sun shines and not pulling out winter weeds; so there is no serious need for him to watch the market closely. 

He sows his seeds!

His harvest will take days, weeks, months, years or never. 

So why need to watch the market so closely? 

For what? 

Home Bias or Away Home Bias???

Sunday, 27 March 2011

Read? Investing Made Simple by Uncle8888 (10)


Any thing seriously wrong with our bias?

It doesn't really matter when we are still making money over decades in the stock market, over market cycles, and over economic cycles in whatever Bias we may have.

The real and truly tested investing in managing diversity and risk is cash and investment.

Make Hay while Sun shines and avoid pulling Weeds during Winter for the next Summer. That will be sad!

Concepts and theories are good; but nothing beat your own practices and results!