facebookPortfolio PnL is negative 69.8%. Having anxiety and depression. - Seedly

Anonymous

12 May 2021

βˆ™

Stocks

Portfolio PnL is negative 69.8%. Having anxiety and depression.

Newbie me entered the stock market in early Feb when the candle sticks were green and high. Now my portfolio is at a negative of 69.8%. I'm extremely depressed. I'm not rich and I just want to make some money. I'm also extremely anxious, I'm trying find ways to recoup my loss by investing in other stocks that are running up but I don't dare for the fear of losing again. Help I'm so sad and lost.

Discussion (12)

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Try to focus on other things that make you happy in life for now, stay away from the temptation to constantly check your positions and accounts. Life is much larger than just your investments.

Also moving forward, you may want to relook at what you invest in and if you truly are ready for the volatility and risk of where you put your money to!

S&P500, DJ30 and Nasdaq are not far from their ATM, if you are suffering such huge losses, it may be because you are too concentrated to only a few sectors or hand picking stocks that have suffered a lot. There is no problem with this if you understand what you are doing and have the stomach for it. However, this may be a good lesson for understaning your own volatility tolerance and you may want to rethink your investment strategy

Be a long term investor. during the dotcom bubble in 2000, AMZN went down -94.5% but look where it is today. We are sometimes too focused on short term performance, forgetting stocks are not lottery tickets, there is a business behind every stock.​​​

Tan Choong Hwee

12 May 2021

Solutions Specialist at Providend

Maybe take a step back and turn this experience into lessons you can learn from. Lets examine a few things you shared.

Why are you extremely anxious? Is it because you have invested a sum of money you intend to use soon? Do you have other savings you can tap from?

It is important to do a holistic planning on your finance. I adopt a Save First, Spend Some, Invest the Rest mindset. Save a portion of your income to build up a ready cash and emergency funds, spend with an expense budget on needs (bills, taxes, insurance, foods, transport, etc) and some discretionary wants, only if there are left over then consider investing the remaining to get better returns. In this way, your living expenses are secured and less stressful for you as you are not depending on investment to feed you.

How did you pick the stocks you invested? Have you done fundamental analysis on the stocks you invested? Did you buy the stocks based purely on technical analysis (candlestick patterns, support and resistance, price action, etc.)?

When you are investing for long term, you want to understand the business potential of those stocks you intend to invest and study their financial statements. The goal is to find quality companies that can grow their business over time. You only use technical analysis to look for good entry price and more importantly avoid bad entry price after you have identified good quality stocks.

Did you invest due to FOMO (Fear of Missing Out) as the market seems to be very bullish? And then it was FOL (Fear of Losing) when you dare not invest in other stocks.

Greed (what FOMO really is) and Fear are 2 emotional enemies of investing. They can easily make us lose our head. They are human nature and you will need to recognize them in order to overcome them. Remind yourself not to make rash decisions in investing.

Right now, you need to calm down and examine your financial situation.

Do you need the money sunk into the stock markets? That should tell you whether you need to sell your stocks and take the hit. Don't rush into buying other stocks hoping to recoup your loss. In fact, Hope is another emotional enemy of investing.

Stop investing in stock market for a while. Spend time and effort in learning more about investing. Investing in yourself is the best investment that can reap a good return and last a lifetime.​​​

Tee-Ming Chew

12 May 2021

Co-founder at Seedly

Before sharing anything, do remember that you should only invest what you can afford to lose. This allows you to think clearly and not be affected by the ups and downs of the current market.

What you should do is to look at the fundamentals and understand if anything has change (e.g is the company not a good investment anymore?) or just short term adjustments?

Remember if your portfolio is down, many others are down as well. Most important is to review if anything fundatamental has changed since you invested.

Unless u r in deep debt, nothing to depress about. based on your last sentence (...dont dare for fear of losing again...), better to exit stock mkt for the time being.
best to invest in your own health n happiness...

Some Valium here for the future,

apply boring strategies and techniques:

https://seedly.sg/questio...

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