Article - BURNT BY STOCKS - I LOST $700,000 IN 3 MONTHS

[ahboy82]

very nice sharing by the pros here. shall share with my frens tmr.

 

[Futureskid]

yeah, a few experience traders i know, they wait for market bottom during a crash or correction, pump in their savings like 50k-100k, to make it 200%-300%, then start trading again with the profit till they lose enough to hit their capital, after that wait for a crash again, then pump in their capital, rise n rinse.

Isn't that equates to net zero? Those few experience and old traders u know must have enjoyed the roller-coaster... but then at least they managed to preserve their capital..

 

[musicwhiz55]

No point enjoying a lot of excitement but not having anything to show for it.

Excitement is certainly good for entertainment but it is not financially lucrative.

 

[Carnage]

I always felt that the 2 axioms that guide Warren Buffet can be easily applied to anyone.

But the catch is, how do you gauge how good are you? Even the Oracle of Omaha lost billions during the Great Financial Crisis.

If you are gaining when everyone else is losing, that's the mark of a great investor.

 

[xtwis7]

yeah, a few experience traders i know, they wait for market bottom during a crash or correction, pump in their savings like 50k-100k, to make it 200%-300%, then start trading again with the profit till they lose enough to hit their capital, after that wait for a crash again, then pump in their capital, rise n rinse.

it is only the newbies or noob that will think a bullish market will always go higher till it breaks the roof and go on the leverage spree, and a bearish market will go lower till we become as cheap as digiland that he put his money in a fixed deposit.

capital preservation and management is the most important aspect of trading.

just my personal observation and opinion

I must say you also need some balls. 2007/2008 if someone pumped in whatever spare liquid savings they have, they would have cashed in by now. I think some like myself haven't been through a GFC so really lacking in that experience. Every few years, a crash brings everything back to square one. Those who survive who practiced the same trading strategy from day 1. Discipline and learning how to cut losses. Different people have different thresholds but definitely, younger people feel that they can afford to lose less .

 

[Dividends Warrior]

I must say you also need some balls. 2007/2008 if someone pumped in whatever spare liquid savings they have, they would have cashed in by now. I think some like myself haven't been through a GFC so really lacking in that experience. Every few years, a crash brings everything back to square one. Those who survive who practiced the same trading strategy from day 1. Discipline and learning how to cut losses. Different people have different thresholds but definitely, younger people feel that they can afford to lose less .

That's why I am taking profit now.....

 

[Sinkie]

Isn't that equates to net zero? Those few experience and old traders u know must have enjoyed the roller-coaster... but then at least they managed to preserve their capital..

But some lost until have to sign on, some lost until delinquent, some lost until bankrupt.

The worst time to start trading is when market is at the bottom and you buy your way up and think you have the Midas touch lol

That why to those who lost alot, don't despair, continue work hard (not trade hard) and raise your money and wait for sti to crash to below 1800 (have patience n wait) just buy n hold and when market rebound after a few months or years, recover your loss and restart or give up completely.

I know a couple, when sti was like 1500, they borrowed and pooled all their money and bought alot of bluechips and reits, and they sold everything a few years later, they upgraded their hdb to a condo, both of them bought a car each, wife starts a business while husband bought a yacht. But woman fall in love with trading and you know what happened next. I remember once she has to sold 1 lot of DBS to settle her contra loss

Don't fight with the market if you don't know what you are doing

 

[musicwhiz55]

That's why I am taking profit now.....

Any reasons for doing so? Where would you begin in terms of divestment? Companies with higher valuations/lower dividend yields?

Thanks.

 

[Sinkie]

I always felt that the 2 axioms that guide Warren Buffet can be easily applied to anyone.

But the catch is, how do you gauge how good are you? Even the Oracle of Omaha lost billions during the Great Financial Crisis.

If you are gaining when everyone else is losing, that's the mark of a great investor.

Money grow money, rich become richer. Infact most of us here are retailers, we can only buy and use eye power n pray. Very good traders are one who really fight the market, fight is when they really fight the seller and force them to push the price higher for them, but u need big limit and these people really exist.

 

[Sinkie]

I must say you also need some balls. 2007/2008 if someone pumped in whatever spare liquid savings they have, they would have cashed in by now. I think some like myself haven't been through a GFC so really lacking in that experience. Every few years, a crash brings everything back to square one. Those who survive who practiced the same trading strategy from day 1. Discipline and learning how to cut losses. Different people have different thresholds but definitely, younger people feel that they can afford to lose less .

yeah, just make sure you are still around when the market crashed

the worst thing to happen is when we go into a depression instead of the V shape recovery boasted by QE

 

[Dividends Warrior]

Any reasons for doing so? Where would you begin in terms of divestment? Companies with higher valuations/lower dividend yields?

Thanks.

It all depends on whether my target prices are met. Starhub is the last stock to sell. I will sell sph after it IPO the REIT......

In fact, I just sold M1 today at 3.04

My paper gain can cover 5 years of dividends oredi.....

I foresee another crisis within the next 5 years.....

 

[Sinkie]

It all depends on whether my target prices are met. Starhub is the last stock to sell. I will sell sph after it IPO the REIT......

In fact, I just sold M1 today at 3.04

today is last day of CD leh

 

[Dividends Warrior]

today is last day of CD leh

I know......the price rise is more than enough to cover 4 years of M1 dividends

 

[Sinkie]

I know......the price rise is more than enough to cover 4 years of M1 dividends

well done

 

[Dividends Warrior]

well done

Thanks.

I hesitated for 5 minutes before clicking sell.

Thought about it the whole night......

 

[musicwhiz55]

It all depends on whether my target prices are met. Starhub is the last stock to sell. I will sell sph after it IPO the REIT......

In fact, I just sold M1 today at 3.04

My paper gain can cover 5 years of dividends oredi.....

I foresee another crisis within the next 5 years.....

I see. So what would your target prices be based on? Analysis of the prospects versus valuations for each Company/REIT?

Would be nice to understand your thought process, thanks.

 

[Dividends Warrior]

I see. So what would your target prices be based on? Analysis of the prospects versus valuations for each Company/REIT?

Would be nice to understand your thought process, thanks.

Basically, REITs that gives me more than 4 or 5 years of dividends will be the first to go.......

Stocks that still have room to run such as Suntec (renovations), CMT (jurong gateway) and FCT (woodlands regional hub) will be kept longer. Like u mentioned, prospects of rental increase.

Singtel has the Myanmar license pending....

I give myself 1 to 2 years to complete liquidation.

By 2015, I hope to be in full cash position......

 

[nauhchop]

Basically, REITs that gives me more than 4 or 5 years of dividends will be the first to go.......

Stocks that still have room to run such as Suntec (renovations), CMT (jurong gateway) and FCT (woodlands regional hub) will be kept longer. Like u mentioned, prospects of rental increase.

Singtel has the Myanmar license pending....

I give myself 1 to 2 years to complete liquidation.

By 2015, I hope to be in full cash position......

Taking profit is indeed the best move now. Of course there will be others who said the market can go even higher and why lose out on more profits.

It is very simple for people to preach to others on the internet. But personally I have been through 2007 and that feeling really sucks big time when you have put in your hard earned savings which literally turned them into 10-20% of value that is left of what you put in.
So from 2007 to 2013, basically there is nothing anyone can do but to work harder and recover by saving more money. Recover not as in putting in more money into the stock market, because monies already gone.

My philosophy now is not whether the market can go higher, but when the market run has come to a stop, comes plunging down, I just pick up the scraps with whatever I have now. Then I just hold on and wait for dividends and capital gains. Not much theory, not much fundamentals.

I have looked at UOB at $7+ and I have no more money to buy. I have looked at Bukit Sembawang at $3+ and no money to buy. There are so many value stocks out there at 40% worth of the price they are today then but I have no more monies to buy after they all got stuck during 2007.

It is easy for people to say sell when market come down, because money don't belong to them. When the person is really in the market, talking up about thousands of paper losses, try talking fundamentals and discipline and I think no one will really listen.

Run while the going is still good. Not much fundamental or technical advices here but just the simple theory of wait to buy low low and keep to sell high high.

 

[musicwhiz55]

Basically, REITs that gives me more than 4 or 5 years of dividends will be the first to go.......

Stocks that still have room to run such as Suntec (renovations), CMT (jurong gateway) and FCT (woodlands regional hub) will be kept longer. Like u mentioned, prospects of rental increase.

Singtel has the Myanmar license pending....

I give myself 1 to 2 years to complete liquidation.

By 2015, I hope to be in full cash position......

Thanks for your explanation. So by 2015 you will have to change your nickname, haha!

 

[Dividends Warrior]

Thanks for your explanation. So by 2015 you will have to change your nickname, haha!

I probably will be lurking around.....won't be posting much.....