Haven't been doing great on stocks....On hindsight, I'm making all the mistakes I know not to do. But can't help doing...Chasing highs, not taking profits, not cutting loss, getting too emotionally involved, buy when others are hopeful (but later than everybody else), sell when everyone is fearful (but later than everybody else). Hah! I spot a stock maybe at an ok time when it's on the uptrend, then I hesitate and enter when it's a higher. Usually I make a small profit but I kept comparing with those who've made more and keep holding out for higher....until profits turn to losses. Then I try to ride it out despite naysayers. And then the losses roll until finally, I let go at an even lower price.
That's not the end. I mourn over the previous loss as I look elsewhere to make it back. Then I repeat the same mistake, only this time, aggravated by the desire to make even more to even out the first loss, the potential gain that could've been and history repeats.
So now, I tell myself...I'll NOT chase highs. I'll NOT think of history. Cos a stock's movement is the present. It doesn't care about my history (but of cos!). And a stock's movement is only temporary. Look for a reasonable target price, study the volume, make a decision to cash out, and go celebrate a profit that could have, but didn't turn into a loss! So I guess it's still about looking back on history, but from a different angle. =) Every win, no matter how small, is a win! Better to win than lose! And slow and steady small wins will eventually roll into larger wins! Finally also, there's always an opportunity cost to holding what started out as a trade. So don't hold a non blue-chip or a risky stock. Can always cash out with small profit (or loss if that's a mistake) and put the money in something else to make it back.
With that, I *try* to start afresh. It won't be easy, and I won't want to write off my losses. But I shall still celebrate my wins as a way to slowly negate the losses, and apply the lessons learned to a longer investing and trading future ahead of me! Goals for 2018 - cash out as much as I can once targets are hit for my stocks, and wait for the next opportunity to hoot big when the time comes! =) Always remember, investing is NOT a sprint, it's a marathon. Make short term trading wins with small volatile stocks while waiting for the right price to invest in good blue chips... that's my strategy. Jiayou! Ganbatte! =)
That's not the end. I mourn over the previous loss as I look elsewhere to make it back. Then I repeat the same mistake, only this time, aggravated by the desire to make even more to even out the first loss, the potential gain that could've been and history repeats.
So now, I tell myself...I'll NOT chase highs. I'll NOT think of history. Cos a stock's movement is the present. It doesn't care about my history (but of cos!). And a stock's movement is only temporary. Look for a reasonable target price, study the volume, make a decision to cash out, and go celebrate a profit that could have, but didn't turn into a loss! So I guess it's still about looking back on history, but from a different angle. =) Every win, no matter how small, is a win! Better to win than lose! And slow and steady small wins will eventually roll into larger wins! Finally also, there's always an opportunity cost to holding what started out as a trade. So don't hold a non blue-chip or a risky stock. Can always cash out with small profit (or loss if that's a mistake) and put the money in something else to make it back.
With that, I *try* to start afresh. It won't be easy, and I won't want to write off my losses. But I shall still celebrate my wins as a way to slowly negate the losses, and apply the lessons learned to a longer investing and trading future ahead of me! Goals for 2018 - cash out as much as I can once targets are hit for my stocks, and wait for the next opportunity to hoot big when the time comes! =) Always remember, investing is NOT a sprint, it's a marathon. Make short term trading wins with small volatile stocks while waiting for the right price to invest in good blue chips... that's my strategy. Jiayou! Ganbatte! =)
