The Biggest Mistake I Made While Trading
My biggest mistake in trading was hitting the panic button when the unexpected happened.
It happened to me when $SPH(T39.SG$ requested for a halt in trading to announce that the media portion of its business would be given away at a token price to become a not-for-profit organisation. The new entity would be further given a cash injection of S$80 million and S$30 million worth of $SPH(T39.SG$ shares and $PARAGONREIT(SK6U.SG$ units to help it sustain itself.
The initial market reaction was largely negative and the backlash from the CEO’s umbrage during the Q&A session and its trending on social media added to the noise. The more vocal retail investors were railing angrily in disbelief while those not vested were mainly interested in mocking the CEO and watching the show. Comparisons were made to the NOL saga (it was helmed by SPH’s current CEO then) which did not end well.
I made the mistake of doubting myself and decided to cut loss despite knowing its book value was more than S$2. When trading resumed on Monday, the stock shed 15.6% (from its previous close of S$1.79) at the lowest point. Although I thought I was prepared for the drop (having experienced the stock market crash during COVID-19 without selling any of my stock) and I had a cushion of profit from trading this stock before, it was still a surreal experience watching the stock price plunge rapidly in the first and subsequent hours; the selling volume was enormous.
The stock subsequently recovered to my cost price over the course of a few weeks and has recently received offers from Keppel Corp and Cuscaden. It is now trading at S$2.33. I could have been sitting on a handsome profit if I had not given in to panic.
The stock subsequently recovered to my cost price over the course of a few weeks and has recently received offers from Keppel Corp and Cuscaden. It is now trading at S$2.33. I could have been sitting on a handsome profit if I had not given in to panic.
Instead of crying over spilled milk, my takeaways from this expensive lesson are:
1) Don’t rely on others to give advice in such a situation. Trust in my conviction for buying a stock in the first place and don’t listen to market noise.
2) Decisions made in a panic are rarely good.
I hope my sharing will help others in the same situation in future. If you enjoy this article, please click![]()
and/or drop a comment below. Thanks.
Disclaimer: The above is my personal opinion. It is not financial advice or a recommendation to invest. Please consult a financial advisor before making any investment decision.
Check out The Difference Between Investing and Gambling https://www.moomoo.com/community/feed/107626897342470?lang_code=2
Check out 2021 in Review https://www.moomoo.com/community/feed/107513145720838?lang_code=2
1) Don’t rely on others to give advice in such a situation. Trust in my conviction for buying a stock in the first place and don’t listen to market noise.
2) Decisions made in a panic are rarely good.
I hope my sharing will help others in the same situation in future. If you enjoy this article, please click
Disclaimer: The above is my personal opinion. It is not financial advice or a recommendation to invest. Please consult a financial advisor before making any investment decision.
Check out The Difference Between Investing and Gambling https://www.moomoo.com/community/feed/107626897342470?lang_code=2
Check out 2021 in Review https://www.moomoo.com/community/feed/107513145720838?lang_code=2
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Moo Top : Thanks for sharing
DadacaiOP Moo Top: You’re welcome. It is a painful lesson for me but I hope my sharing will help others.
snoopy123 :
#MeToo
simplyZuan : dyodd
Lei1349 : Thanks for sharing! By the way, please tell me where and how to analyze the book value? For example, you mentioned that the book value of sph is > 2 yuan
DadacaiOP Lei1349: You can check the official website of Yahoo Finance or the company's investor relations.
High Profit Low Loss : I can empathise with you, I had been there before. One must consistently reminds ourselves not to make such mistakes again.
Thanks for sharing the difficult pain which is difficult to endure.
Lei1349 DadacaiOP: Thank you so much!