Your personal experience during financial crisis?

[winorlose]

2008-2009.. wah lau eh. I everday see HSI drop 2k points.. no end..

Have to sell Nehnekpork

 

[felixleong]

ehh during a financial crisis, when u do contra, mostly is buy what lose what, then when u want to cut loss, the other seller dont wait for you one, is either u lose less or i lose more, you can do a trade, then go toilet come back and lose $1000 le.

Then last time cfd not that popular also, only can nude short nia but most of the downtrend was formed by gap down the next day rather than sell down during market hour de.. and during market hour, most of buy the buy up were mostly short covering nia lol then when u think got buyer le, u go try abit and still lose lol

i remembered last 2007 financial crisis, got the raining phenomenon, when it rained, market cui, so everytime when u see the sky dark dark, u really wan just to go back office and cut cut cut lol. then when it rain, u really felt the chill

yeah those were the day
I got friend who contra cosco and died, became delinquent... GG

 

[winorlose]

yea i remember COSCO had a V drop recovery within days.. my friend who sold during the drop sibeh dui......lost 15k in 3days and only to see it V recover after that

 

[Sinkie]

yea i remember COSCO had a V drop recovery within days.. my friend who sold during the drop sibeh dui......lost 15k in 3days and only to see it V recover after that

Yeah, I remember too, sti started to cui till -50 or -100 can't remember then Gnn last 30 min v shape recovery to close green puii

 

[Dyhalt]

My first financial crisis experience was 1998 financial crisis... pretty much what Russia went through last year if you lived in Malaysia, plus currency control.

Then theres dot.com bubble, 911, SARs and Lehman Brothers collapse.... I can tell you none of these crisis were predictable... and trust me no matter how "prepared" you thought you are, you are going to succumb to the fear of losing.

A paper loss of 40% is nothing compare to the frustration of seeing your investment plunge each day consecutively for 15 months. Just when you think a stock corrected 40% is safe to buy, the next thing you know is it plunge by another 40%., then another 40%.... liquidity dries up and everyone panicked.

People heavily in debt will suffer badly, jobs dries up and people unable to pay for the financing they thought they could handle just months ago.... I really hope such events are not just right at our doorsteps again.

Back to investing... the safest method I learned to face crisis is to have strict investment rules. 25% cash 25% hard assets 25% equity 25% fixed return investment. You are going to have lots of paper losses, but you need to have some cash in hand because after 9~12 months into crisis, you'll find your cash really helpful in picking up investments at a bargain. The question is, do you have the will to reject the temptation of buying when the stock was still going down in the early phases of crisis. Cheers.

 

[simon_84]

A paper loss of 40% is nothing compare to the frustration of seeing your investment plunge each day consecutively for 15 months. Just when you think a stock corrected 40% is safe to buy, the next thing you know is it plunge by another 40%., then another 40%.... liquidity dries up and everyone panicked.

You are going to have lots of paper losses, but you need to have some cash in hand because after 9~12 months into crisis, you'll find your cash really helpful in picking up investments at a bargain.
The question is, do you have the will to reject the temptation of buying when the stock was still going down in the early phases of crisis. Cheers.

key points noted.
seems like the likelihood of catching a falling knife during financial crisis is very high.

 

[focus1974]

Must ask if fully paid... if not also scare no rent to collect and pay debt

i can pay off everything.. but i won't...

Nope.. property is about leverage.. and let tenant pay...
and then wait wait wait wait wait for the capital gain in 10 yrs time..
if sell..get capital to reinvest in new ones..
if dont sell... tenant pay down ur installment until u get a free property..
rinse and repeat..

 

[Perisher]

Need to have capital for the first property leh... And first one must pick properly, if not that's it, stuck for long long time.

 

[wahkao3]

Can you guys withstand a 40% drop in your portfolio, and hold them till after the recession is over?

no cannot.
so for me my plan is to sell off all stocks before the crash and buy stocks back on the cheap after crash

 

[wahkao3]

Each time there is a financial crisis, I would have to start working...

no loh, your equity curve during financial crisis is stead bom pee pee 1

 

[wahkao3]

My business only picks up during crisis... now swatting flies...

actually true, given current high valuations, i suppose your fund is mostly cash now?

 

[lcornwisky]

not really much during the financial crisis however its true i used to over trade....now i undertrade

 

[NehNehPork]

Thanks for the great response! I read all your experience and comments with one another, really can see that most of us are already prepared for a sell off. Most of my shares are in the US/Malaysia/SG and I had a rough trading year in 2014. Whipping off about 30% of my equity. The reason I foresee a crisis coming is mostly due to reading of news/current affairs and the current volatility of the market. of course all these are speculations and today we just saw china market slumped roughly 8% due to regulations on brokerages.

Anyways it's was really great to hear your personal experiences and how you guys cope on it! I'll most prolly pump around 70% on properties next year. With the rest to be held in fixed deposits or spare cash. With what you guys said I don't think I'll be going in near the equity market till it rebounds a 100% haha

 

[felixleong]

when others are fearful, I try to be greedy

currently 90% vested, 10% cash/FD

cheers

 

[wahkao3]

cThe reason I foresee a crisis coming is mostly due to reading of news/current affairs and the current volatility of the market.

yes there will always be juicy news on TV to keep you trading. u will get so confused dunno market will go up or not.

i suggest ignoring them

 

[wahkao3]

when others are fearful, I try to be greedy

currently 90% vested, 10% cash/FD

cheers

trueeeeeee

 

[addict951]

eh sinkie, the weather trend thing came from me leh. Remb rast time I always said so in my old chiong ah chiong thread???

Whatever sun big big bright bright mkt will rally, when it rained mkt will sleep or go down.

 

[addict951]

NehNehPork, what's your net worth?
Wah, 2 properties over the next 3-4 yrs. You're worth around 2-3 millions ah?

 

[Perisher]

no cannot.
so for me my plan is to sell off all stocks before the crash and buy stocks back on the cheap after crash

Your plan only works if you know when is before the crash and when is after the crash. Basically, since you admit you dunno when it will crash, you have no plan at all.

 

[wahkao3]

Your plan only works if you know when is before the crash and when is after the crash. Basically, since you admit you dunno when it will crash, you have no plan at all.

my plan is to react to crash-like signs

When there is high chance of upcoming crash, I will play it defensive and keep mostly cash

right now, i dont see crash in sight