What is your biggest financial mistake in 2020? What did you do to rectify or recover from it? - Seedly
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Rachelle

Asked 3w ago

What is your biggest financial mistake in 2020? What did you do to rectify or recover from it?

Share them with the Seedly community so we can all learn from them in the future! 🌱 Be gone the bad of 2020! 🔥

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    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.

    Reference: https://seedly.sg/questions/share-with-us-the-most-horrific-memory-you-ve-had-in-your-personal-finance-and-investing-journey-that-you-can-never-forget-till-today-what-was-yours ​​​

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    Rachelle
    Rachelle

    3w ago

    HAHAHH thanks for sharing this again Gabriel! : ) but yes to the TL;DR! 👍
    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
    Post

    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

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    1 more comments

    Rachelle
    Rachelle

    3w ago

    Anyway thanks for sharing jovan! who knows you might find other like-minded individuals who share this unpopular opinion HAHHAH
    Jovan Lai
    Jovan Lai

    3w ago

    Thanks for the encouragement Rachelle! Happy New Year
    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
    Post

    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.​​​

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    Rachelle
    Rachelle

    2w ago

    Ahhhhhhh so painful :( thanks for sharing this though! To a better 2021! 👍
    jhmadhu23

    2w ago

    Yep...to a better 2021 :):)
    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
    Post

    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!

    https://yuqitan.medium.com/a-honest-reflection-on-investing-in-2020-8a55e83f95ed

    Hope it helps!​​​

    2

    Rachelle
    Rachelle

    3w ago

    Thanks for sharing!
    Yu Qi Tan
    Yu Qi Tan

    3w ago

    You’re Welcome!!!
    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
    Post