Friday, 8 January 2016

Time to learn from old times bloggers

In the volatile bear market which has the potential to become even more bearish, it is time to dig up and revisit OLD posts (and any of past reflections) of finance bloggers who have been through the Great Bear markets. Those with scar wounds but survived with gut of steel to tell the stories are the best ones to learn from. Just browse through thefinance.sg or some of my favourite blogs at the side bar and you might discover them.

Why do that? It is always less painful to learn from others' mistakes.
A good read from BigFatPurse
From Createwealth8888 - Harsh lessons from 1997/98 and 2007/08 stock crisis

On the contrary, you could argue that one would remember the pain better if learnt from one's own fall. Just don't purposely go and fall down to learn.

What are some recommended topics to review?

  • Risk management of the invested assets, and 'war chest' aka idle cash
  • How not to lose more money to the market eg. stop loss measures (too late? be late than never), avoid risky instruments, avoid risky / cyclical sectors, average down cautiously or not at all
  • Back-to-basic investment strategies, when to hold and when to sell? How to eliminate bias in stocks researching?
Topics to read with caution:
  • Buy recommendations (Write ups on any buy recommendations tend to have an element of biasness)
  • Sell recommendations (Same as the above reason. You had better understand what strategy you are undertaking first.)
***
Whether the market or our portfolio fall by bungee-style, slide or tumble, doesn't matter.

The important part I am waiting for is the bottoming, the point of consolidation (which I might missed if I remained overly 'bochap' and I have no prediction when that might be).

Hope is a good medicine
(and poison too).

***

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...