Be STEADY!
First and foremost, if we continue observing loss in our investment, stop making anymore new investment to avoid further damage. Take a step back to identify the actual root cause. Something must have gone wrong somewhere. ![]()
Generally, it’s either due to market outlook change ( which we have not reacted fast enough to it) or indeed our own problems.
Few steps below for consideration based on my own experience:
Generally, it’s either due to market outlook change ( which we have not reacted fast enough to it) or indeed our own problems.
Few steps below for consideration based on my own experience:
1. Capital preservation - Scrutinize our portfolio and decide if preserving capital is needed by discarding those stocks without good fundamentals or unlikely to make a rebound in near future. Not applicable if you have enough ammunition of course. 😊
2. Learning - DYODD for any future stock purchase, both on its fundamentals/technical aspect
3. Mindset change - Stop believing that a company/sector that performed well yesterday shall remain its glory on forever basis. Always keep an eye on macroeconomy and market trend change.
4. Strategy - Diversification and applying dollar cost averaging instead of “all in”.
5. Self discipline - Adhere to the cut-loss plan ( never let your ego to take control of your rationale thinking) and take profit at the right time ( greediness is always the root of all evil).
Lastly, be STEADY, have faith in yourself and you shall rise again...
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steady Pom pipi : Great suggestion!
Hua Moo Lan : great sharing
104065722 : Yes, I can share this. I'm sure my friend has been in the market for a certain amount of time. These are certainly important, but to sum it up, the mentality of the market is the most important thing.
cola1010OP steady Pom pipi: Thank you for starting a great topic.
steady Pom pipi cola1010OP:
cola1010OP 104065722: I agree, I've also touched quite a few nails, so let's all study together. Do you have any market mentality you can share?