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Lessons from 2015 that send me cringing


Lessons learnt from Mr Stock Market:

  1. What looked like 'pretty good' deals then (in a bull or not-yet bear market), do not look good now (in a bearish market)

    Perspectives change together with market outlook and current stock prices. Might be a good time for value investing.

  2. Dividends in good times should be put into my pocket

    When a stock's share price is high, it's dividend reinvestment would be pegged to a lower price then the current share price. This makes getting scrap dividend shares look like a good deal. This might not be the case when the stock price plummets, as I could have used the dividend payout money to buy the shares at an even cheaper price later as market continues its bear trend. 

  3. Impatience and itchy fingers

    This was my silliest mistake. I accidentally submitted two buy orders for Keppel due to a confusion in using the DBS Vickers portal (Cash vs Cash upfront). I failed to cancel the wrongly placed order in time and it was quickly filled (caught a falling knife!). Then this initial small loss snowballed into big paper loss afterwards. !!@#$@

  4. When Hope = poison and Passiveness = complacence

    5. Looking at the short-term STI chart (in 2015), I thought it's trending up with minor volatility. I also thought that oil prices would not to go any lower.
    Looking at the long-term STI chart (here), we can see that STI has in fact come to a point of resistance at that time. If I have realized that, I would have sold my 'look good' stocks bought during the Greek crisis and locked in some profits.
    Yes, that's a Jedi trader mindset.
    A long-term investor mindset would be - hibernate through the bear (few months, few years, 10 years...?) and things would be fine. Have dividends to collect and STI zig-zag trends upward anyway, right? Zzzzz....
***

自言自语的一章‘事后孔明篇’。

Source: threekingdoms.wikia.com
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Comments

  1. Singapore Man of Leisure11/01/2016, 20:01

    美眉，

    The needle don't prick you, you won't know the pain.

    Reading about other people's mistakes is only good for entertainment only.

    I'm sure you have read similar mistakes from other writers and bloggers before ;)

    This is better! Now you are using your OWN examples and OWN experiences.

    If you find yourself making the SAME mistakes again, well, you should know what to do with yourself...

    ReplyDelete
    Replies
    1. Rainbow11/01/2016, 20:32

      Yes Sir SMOL. Hope you are entertained by this post!

      Delete
  2. Createwealth888811/01/2016, 20:20

    Read? Help me! I am still losing money in my Investment Quadrant (5)

    ReplyDelete
    Replies
    1. Rainbow13/01/2016, 01:00

      Hi Uncle8888, thanks for the post link. What's meant by your 'averaging in'?

      Delete
  3. Createwealth888813/01/2016, 07:28

    Read? Why I Don't Average Down?

    ReplyDelete
    Replies
    1. Rainbow13/01/2016, 20:51

      I needed remedial lessons, so also read:
      http://createwealth8888.blogspot.sg/2012/07/average-down-or-pyramid-up-2.html
      and
      http://createwealth8888.blogspot.sg/2010/08/understanding-stock-market-risks-edited.html
      Good posts :)

      Delete

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