AMA Investment Moats
Asked on 21 Aug 2018
What was the takeaway from the decision you made?
There is a lot of mistake I made along the way. And all the mistake make me more aware and improve my decision making in my investing journey.
For example, "Following" Gurus, "Following" Buy/Sell Call, Rush into Investing because fear of missing out.....
Always do my best to make a concious and independent decision at the moment. Although I may not cover every blindspot at the moment, at least I did my best base on my personal decision.
Everyone could have different results, and at different pace, so it is ok that my portfolio didn't grow as fast.
The big one is to listen to too much doom and gloom advice. That is before 2007. And then when the time comes failing to execute and losing my head in the process.
After that, you just became so cautious because every draw down in the markets feels like a 50% draw down coming.
Due to that, I failed to stay in the markets. When you fail to stay in the markets you might missed out on losses. But you also incurred alot of opportunity cost of what it could have been.
I could certainly reach my objective 2 years earlier had I not have that overhang.
Having said that, we might always learn the wrong lesson. I think for myself, it is to understand that in the markets, markets tend to be positively skewed most of the time, and that the negative portion tends to be more swift. So plan your decisions accordingly.
Don't be 100% in cash, be 100% in equities when general market valuation metrics become more attractive. If you are either 100% or not 100%, psychologically you feel that urgency to do something.
If you have purchase a group of stuff you would want to hold for long, your brains won't be so frantic to make a move. There might be a tendency to make rash decision there. Always be prospecting stocks. When you have a wider pool of opportunities, you won't be scared to miss out on something you think it's a once in a lifetime opportunity.its good to have alot of great opportunities then one
Yes, IPO for XMH Holdings. Went into it near the start of my foray into investments and didn't know better. Stock tanked, and even went into a 4-1 consolidation... Still held on as a reminder to myself to never get into IPOs of companies that I don't know about or have done much research on.
Also regretting selling puts on SPY 3 years back. Should have trusted my gut and bought the put and not sold it.
When I was a newbie, My Broker (who left the brokerage) called me on mobile and ask me to buy a stock.
No black and white evidence.
He knows my buy limit is 7 digit so ask me to buy the stock saying the stock will moon.
I wanted to buy but I forgot my password and could not login and got lock up so I did not buy.
As a newbie, I didn't call the brokerage to reset my password.
I believe in Destiny and if I can't buy there is a reason.
From tt day onwards, I nv see tt stock raise ever again.
With what I know now, I will be buying from him if I did login and buy.
I regret listening to my broker but glad Destiny is with me.
Selling the winners too early and hesistated averaging down when the stock crashed further by another 20 to 30%.
It all goes back to how much you know about the company and whether you can stomach the fluctation of the market, never invest all in and keep some cash to average down the cost price.
Buying endowment plans with the banks and not comparing insurances before buying! Always remember your main purpose of going to the bank. If it is just to open an account, just open the account and not get plans that bankers sells you. Unfortunatly, most of the time plans sold to you at the banks are not what you need.
Regretted investing in an ILP that is too high in fees and charges, underestimated the costs only after a few months in-force. Have terminated it after a year with a loss. Took it as a stop-loss with lesson learnt and move on.
Blindly following ideas. Sometimes I come across articles / reviews by people and just blindly follow their ideas due to my laziness in conducting my due diligence and I think that showed itself when stock prices start falling and the only person I feel like blaming is the person who I followed. But in reality i only have myself to blame.
So, never be lazy when making investment decisions
Not investing sooner! It's almost always better to start somewhere than staying out of the market once you have decided your investment strategy.
Absolutely no regrets.
I enjoyed every failure that has come together with success.
Let me explain. I have a trading friend who takes all the safe trades and ignores the non-safe trades. He has about 2% trades that go wrong
I take the risk trades and I have abt 30% that goes wrong.
But the 70% that succeed, they succeed with a much bigger return. Yeah, I lost money in 30%, but the losses are so much lower than the winnings.
Do I regret the 30%? I can't regret them.... I can't choose only the winners (I am no guru), so I can only choose what I know and as long as overall I am making money, I am happy.
Most of the people that I know with 0% failures are those who never even try or don't dare to try.
No regrets guys! Every investment failure is something for you to learn and grow richer (if you choose to learn from it)
Yes, not cutting my losses and taking profits.
When I started trading/investing, I did not use stop-loss because I held on to a hope that the security's price would move in the direction I want. But boy, I was wrong most of the time and ended up losing all my exposure on them. Thankfully, my exposures were 1-2% of my portfolio, so I was able to digest the loss.
Similarly, I also did not take profits when I should have, instead waited for the profits to soar.
Emotions have no place in trading.
Investing in a couple of shares based on public opinions and not doing in-depth anlaysis on my own.
The share rock bottom and has never recovered. Fortunately, it was a small amount compared to my entire portfolio now. Phew!
Here is everything about me and what I do best.
Yes. Not doing my research properly, and following my emotions to buy/sell.
Takeaway: always do your research. and DO NOT be greedy when the markets are being greedy. you'll burn your own hand.
Yes buying a tech stock In the US market then the company just went downhill
if I were to decide again I would invest in a company that pay dividens instead
Yes. It's that I brush off financial consider too difficult and didn't start young.
If able to turn back time, I would have tell the high school me to start now, starting savings, learn how to read financial statement and learn how to ask to open CDP account and start investing rather than wasting time doing / pursuing anything else.
Nevertheless, it's never too late better than never.