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

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Old 09-04-2013, 04:57 PM   #31
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seems like most pple who invest normally have some battle scars. even those whom i attended seminars and talks also spoke about losing because of greed. Can this really be a cycle (losing money)which most pple go through before getting rid of the greed in us?
I remember a saying from Warren: Nothing sedates rationality like large doses of effortless money.

Losing money brings you back to reality and makes you realize investing is hard work.
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Old 09-04-2013, 05:04 PM   #32
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I remember a saying from Warren: Nothing sedates rationality like large doses of effortless money.

Losing money brings you back to reality and makes you realize investing is hard work.
i like what you said.

i also always tell myself, losing money is just the beginning of winning, if you learn from your lost, the money become valuable school fee, but if you stop and give up, the money lost will officially become money lost and you can really write off the whole sum
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Old 09-04-2013, 05:04 PM   #33
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it is the beginning of your destruction when you are on a winning streak without any battle scars (because you think you are god of trading, you start to leverage and have your own courses) and it is only through losing that one learn the most and that is also when winning is the sweetest.
I remember a saying from Warren: Nothing sedates rationality like large doses of effortless money.

Losing money brings you back to reality and makes you realize investing is hard work.
Yup totally agreed. The market can make you feel humble anytime.
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Old 09-04-2013, 05:16 PM   #34
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i like what you said.

i also always tell myself, losing money is just the beginning of winning, if you learn from your lost, the money become valuable school fee, but if you stop and give up, the money lost will officially become money lost and you can really write off the whole sum
I love what you said

the moment one stop learning the journey ends, money lose can make back, knowledge once acquired you can never lose it
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Old 09-04-2013, 05:25 PM   #35
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I love what you said

the moment one stop learning the journey ends, money lose can make back, knowledge once acquired you can never lose it
yeah, that why i always say, dont spend money to attend course because you can learn trading or investment by self-studying, yes it will take a longer time, so always traet it as a hobby first, the fee you pay or spend on attend course can be use to 'try' on real trading.

as a laymen analogy, you can pass basic/advance driving theory self-study, but that doesnt mean u can drive a car immediately, end of the day you still need to 'pay' and go through practical lesson, and even when u got the license, that doesnt mean you can drive on the road, you still need to drive on the road alone under different weather and road condition to really say you can drive too.

and dont expect to start winning, a winning streak in a bull market means nothing, it is the streak or capital preservation during a bull or bear market that matters

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Old 09-04-2013, 05:30 PM   #36
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Yup totally agreed. The market can make you feel humble anytime.
yeah, that why, it is always 'cheaper' to start trading when you are still studying when $100 will make you queue at bedok reservior, compared to when you have raise enough funds from many years of working and you need $10,000 or even $100,000 to make you feel pain

and when you finally master the art of trading, you will ask yourself if only you have that capital you lost previously now.
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Old 09-04-2013, 05:34 PM   #37
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a winning streak in a bull market means nothing, it is the streak or capital preservation during a bull or bear market that matters
As you have mentioned, a rising tide lifts all boats. It is very tough to differentiate skill from luck when valuations are rising across the board, even for companies of inferior quality.

The true test for an investor is capital preservation over an entire cycle of bull/bear/bull. Not losing money is in fact more important than trying to make as much as you can. This is evidenced by the fact that many who lost significant amounts during crises take years to make it back (to be in the black again), after which they need to work doubly hard just to compound their initial sum of money.

So remember - don't lose money!
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Old 09-04-2013, 05:34 PM   #38
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yeah, that why i always say, dont spend money to attend course to learn trading by self-studying, similiary, you can pass basic/advance driving theory self-study, but that doesnt mean u can drive a car immediately, end of the day you still need to 'pay' and go through practical lesson, and even when u got the license, that doesnt mean you can drive on the road, you still need to drive on the road alone under different weather and road condition to really say you can drive too.

and dont expect to start winning, a winning streak in a bull market means nothing, it is the streak or capital preservation during a bull or bear market that matters
Uncle sinkie is the best mentor here
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Old 09-04-2013, 05:39 PM   #39
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As you have mentioned, a rising tide lifts all boats. It is very tough to differentiate skill from luck when valuations are rising across the board, even for companies of inferior quality.

The true test for an investor is capital preservation over an entire cycle of bull/bear/bull. Not losing money is in fact more important than trying to make as much as you can. This is evidenced by the fact that many who lost significant amounts during crises take years to make it back (to be in the black again), after which they need to work doubly hard just to compound their initial sum of money.

So remember - don't lose money!
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

Last edited by Sinkie; 09-04-2013 at 06:02 PM..
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Old 09-04-2013, 05:50 PM   #40
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sinkie..the true pro has spoken.
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Old 09-04-2013, 10:48 PM   #41
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very nice sharing by the pros here. shall share with my frens tmr.
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Old 10-04-2013, 01:57 PM   #42
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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..
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Old 10-04-2013, 02:00 PM   #43
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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.
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Old 10-04-2013, 02:13 PM   #44
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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.
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Old 10-04-2013, 02:16 PM   #45
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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 .
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