Asked 3w ago
Share them with the Seedly community so we can all learn from them in the future! 🌱 Be gone the bad of 2020! 🔥
Hey Rachelle, I've shared previously in the Halloween Giveaway post so I'll just copy and paste it here :)
TL;DR - Don't fomo, greedy and always due your own due diligence
I got involved in a "pump and dump" situation back in April. Basically, Q&M Dental Group announced that they will be investing in COVID-19 test kits. I was then scrolling through InvestingNote, where many people were speculating to "buy" the stock because it'll definitely rise. Feeling FOMO, I decided to purchase some Q&M Dental stocks too. Made a paper profit of $270 by lunchtime and decided to sell it to secure the profits.
Feeling FOMO (again) and thinking that it was easy money and that I could possibly double my profits for the day, I decided to jump back in and purchase even more Q&M Dental stocks after lunch. In the end, the stock took a deep dive in the afternoon, and at that point in time, I wasn't monitoring the price movement, and neither did I set a stop loss. Ended up selling the stock at a loss of $700, so that's a net loss of $430 within the same day.
Unpopular opinion (gonna receive hate for this)
My biggest mistake was passive investing DCA. Can only make money in one direction. Up. Not taking advantage of mispricing and cheap prices. Lose along with the market going down while seeing professional traders/proprietary traders I know make big profits shorting the market and buying big near the bottom.
Ever since I started being properly trained in trading, made +43% in the past 6 months, even though I completely missed the bottom
Here is my biggest mistake in 2020-
After the market sell off in March, we had a big USD rally due to liquidity issues. I placed a large sized bet with UUP etf using a call option with strike price of 28, hoping UUP to rally from 26.5. I lost SGD13K in single trade over 3 months.
There are many lessons i learnt from that trade-
1) leading up to the trade i made a huge fortune from my TLT trade which gave me 400% profits leading up to the crash. Every single projection worked in my favor and i was very confident in my approach. That overconfidence lead me to take a big trade in my next trade as well.
2) Position size was too large to start with..again this is because of over confidence this was my biggest mistake.
3) Never fight the FED- I was not expecting huge stimulus package from FED to offset USD strengthening. Even after FED announce unlimited QE, i assumed FED is wrong. Also, I was not paying enough attention to FED M2 supply data (which is critical when you are placing a USD currency trade)
4) Staying too long with the loosing trade eventhough i had plenty of oppertunity to get out of it.
Ha ha... I litterally did every single thing that a trader should not do.
Hey Rachelle! I actually wrote an article on this!
It contains my biggest mistakes on investing in 2020 and what worked for me as well!
Hope it helps!