My hard lesson in investment. I posted it here before in March 2020 and some of the forumers here laughed their head off. But it's OK. I got no ego issue.
To re-cap. Sometimes in April 2017, I had a hot run in Bursa. Gold finger. Nearly every single stock that I bought went up. By October 2017, my unrealised profit was about RM110K. Not including dividend payment of about RM14K for the year.
Usual story. I got cocky. Nothing can wrong. No cut loss policy. Even when the TA and FA turned sour.
Fast forward. By 2019, loss of about RM190K. Overall portfolio down by -50%.
Moral of the story. Please learn from my mistakes.
Decide early.
1. Are you a trader or a long term investor?
2. To average down or to cut loss when the stock is down -10%?
3. Do you have an entry and exit plan?
4. Diversify across different sectors if possible.
5. For investors, what is your definition of long term? Anything less than 1 to 2 years is only short term.
P/S: Paper trading or doing things in theory is very different from practice. Read more investment books and trading books. Do not trade stocks with money that you cannot afford to lose. It is a one way road to Holland.
My 2 cents...
