As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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.

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Value Investing
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Technical Analysis and Charting
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Wednesday, 3 August 2016

No Cut Losses & Multi-baggers For Long Time (2)



Read? No Cut Losses & Multi-baggers For Long Time

In RETAIL investing; where we ALONE and OURSELVES are fully responsible for our own money but there will be full of  CONVENTIONAL market wisdom folks offering their free advice thinking they are "smarter" in their portfolio and management without proving their strategy is so superior.

Conventional market wisdom : Cut loss to preserve capital to fight again!

Conventional market wisdom will generally work well for the mass.


What if we are not those who are on this path of conventional market wisdom?

Doom? Die?

Uncle8888 made Hay while Sun shines and avoid having to pull out any Winter weeds. He has plenty of Hays to survive long and harsh; why he needs to worry over those smaller Weeds that won't kill him?

He doesn't need to eat Water Melon into the Green as he can afford to waste some juicy Red without feeling much pain.

In investing; it is all about 3Ms- method, MIND, and MONEY MANAGEMENT.

Money management is NOT just about CUT LOSSES. It is more than those conventional thinking.














8 comments:

  1. I join in the fun by revealing a bit of cleavage:

    Money Management


    There's another technique I did not describe.

    Look at Qian Bei's multiple rounds of trading Keppel. That's trading around a core position.

    These realised profits stuffed under the pillow will become very opportunistic when the core holding suffers from a temporary bout of flu ;)

    Just make sure its not pneumonia hor!


    There's no such thing as "bao jiak".

    Just look at AIG. Cannot fail one right?

    Yeah right... Although it was bailed out by the Govt, the original shareholders got less than 10% of their money back... It's just a difference between 100% loss (bankrupt), and 90% loss (bailed-out).

    ReplyDelete
    Replies
    1. Ha! Ha!

      SMOL, core trading eh?

      How about another round i call "market timing"?

      "A rose by any other name would smell as sweet"

      Only it's so easy to say (like talk male chicken), but try catching a fierce free roaming kampong male chicken.

      "相佛容易刻佛難"

      That's why still here leh!

      Delete
    2. temperament,

      To let a 10 bagger go to 5 bagger is not exactly fun. Yes, we didn't lose money; but still...

      Like you've said, it takes lots of conviction (and luck) to take some money off the table near the top, and re-invest them near the bottom.

      Conventional wisdom says it can't be done.

      Yet if I don't attempt it, what's the point of me doing it full-time?

      Delete
    3. Ha! Ha!

      SO Desu Ne

      i have said, "That's why i am still here looking for the rainbow to appear.

      For me, 1 or 2 bagger times market cycles in my lifetime of investing journey is good enough.

      Or my UTD stock portfolio can achieve 6 to 10 % CAGR "constantly", i thank GOD already.

      If we look at CW8888's table of GIC AND "TOO MUCH SICK" of CAGR, you will know why i thank GOD already.

      i am just a "calafei" in the stock market.

      How to compete with them?

      No!

      Never!

      i just do what i think i can do to my best.

      The rest is up to what you want to think?

      Go and read Howard Mark and see what he thinks about life and investing in the stock market.

      Delete
    4. Comparing to GIC and Temasek can console us. ha ha.

      Delete
  2. Market wisdom is full of paradox. Don't sell your winners, cut your losers, time in the market not timing the market...I guess for every action to do A, there's an equally valid advice to do the oppposite action B.

    I guess we need wisdom to know when to apply what advice.

    But how to gain wisdom? Must have experience loh. How to have experience? Make mistakes loh LOL

    ReplyDelete
  3. Ha! Ha!
    He who dares to be a fool first then will taste the fruits of wisdom.
    If you have never jumped into the pool first and swallow some water, how do you know what is swimming?

    ReplyDelete

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