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Investment Anyone kena burnt in investment?, Experience and your lesson learnt

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normanTE
post May 9 2019, 08:44 AM

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QUOTE(fairylord @ May 7 2019, 06:40 PM)
Thank you for all not hesitate to share the experience. It's really seldom reading about the adverse side of investment as none would like to share the failure.

So far, have not seen any unker aunty share about the 2008 and earlier recession, how to live over the doom days. May be we all here are majority investor (or new) of youngster generation which yet to experience those suffering moment from financial and investment perspective.

Always we heard some sifu suggest to average down and when you believe continue to hold, or save warchest and get ready to hoot during/after recession. I just don't understand how to hold up my believe when the price arrow are shooting down in a graph and my heart is keep pumping the blood all over the body while we unable to identify where is the bottom and start bounce back.

Are you able to hold?
Are you dare to hoot?
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I wont call my self a sifu. in life if you are looking hard enough youwill get the answers. judging from this you are from investing perspective (fundemental is very important)
if you are certain the business that you holding is fundementally strong you should continue to hold.
what is the criteria of good business ? you must understand just like any profession it take many year to specialise in their craft. heard of law of 10,000 hours.

to cut the granny story short. here is the lead
consistent earning and sales growth and low debt with lot of cash in hand which mean they have some forms of moat.
Current ratio excced 1.5 and Debt /equitty ratio of <0.5
sales and general administartion exceed of 30% of gross profit margin is a no no meaning management taking too much in bonus or salary
what is the outstanding shares look like? are they printing more shares or share buy back. (usually not happen with malaysia stock)
(again if you are investing this is also a probablity strategy it doesnt mean it work all the time it also depend on economic environment if us going war with china those probability most like wont work, like winter your crops just dont grow)

investing you need a one great deal of ingredient that is PAtiently waiting for the right price.
like mr buffet once said like a punch card. if you can only punch 20 time in your lifetime you will think very hard each time before you make those punches and infact you dont need 20 punch to get rich. probably 3-4 punch you will be in a comfort zone.

good luck.
David_77
post May 9 2019, 08:45 AM

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QUOTE(z21j @ May 8 2019, 11:30 PM)
Invested in an offshore registered company for 5k, but got return 300k in a month. Instead of sending money back but i decided to let go. Dont understand why the gain in such a short period scare of dirty money. Dont know whether im stupid or what but probably im fated to be a failed investor who has small risk appetite
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I think you are wise cos might be a case where they are using your bank account for money laundering.
normanTE
post May 9 2019, 09:00 AM

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Everyone fall but what did you learn from the fall that is more important and look at the ray dalio principle.
solstice818
post May 9 2019, 10:15 AM

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QUOTE(MeToo @ May 6 2019, 06:08 PM)
THIS is so true.

I suffer form this as well, fast to book the (tiny) profit, but when lost too stubborn to cut.

Now the hole very deep... cannot even cut  cry.gif  cry.gif
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The biggest lesson I have learnt from investing is know when to cut the losses. Always save your bullet for another day.

This post has been edited by solstice818: May 9 2019, 10:18 AM
junclj
post May 9 2019, 11:27 AM

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My money was burnt in buying shares. The current situation in bursa Malaysia is not recommended to buy shares now. I was lost 30~40% from my total investment in market shares. Now what only I can do is hold for it up to 20~30 years.

Fortunately, I am still young. I can save money to invest in others safer investment such like asb and asb2. My trading account now left untouched, the money is still there. I'm still holding some shares of 3 companies but all 3 shares are losing money. So I not really care about it, although I'm losing 5 digits amount. Few years ago, I was starting to build up another investment in ASB and ASB2. So hopefully I will save up more money in the next few years. My target is 6 digits in next 10 years and 7 digits in next 30 years.

This post has been edited by junclj: May 9 2019, 11:44 AM
icemanfx
post May 9 2019, 12:06 PM

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QUOTE(ShinG3e @ May 8 2019, 12:39 PM)
lost more than 10k because trusted my remisier to make the right speculative call

lesson learnt: DYOD
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QUOTE(real55555 @ May 8 2019, 12:44 PM)
Made some losses investing in stocks and lessons learnt. I think due to the following reasons:

1. 'Does not really understand' what and why I am actually buying. Some are from tips, analyst recommendations etc. They will only tell you when to buy, wont tell you when to exit.
2. Does not have the time to monitor closely, and also the knowledge to reach a decision. Some people will said everyday just spend a few minutes look at the price, but you also have to know what each price level means, otherwise it is just numbers to you.
3. Most important. Did not set exit target (take profit and cut loss). Ended up just buy and don't know when to sell.
4. Since doesn't have a clear objective, I guess it also doesn't help in mitigating the emotional up and down looking at the stock price movement. Ended up making decisions based on gut feelings.
So after these lessons, I realized I'm not suitable to invest in stock market. So I go for unit trusts, but i guess this one is a story for another day as this thread is about getting burnt in investment.
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QUOTE(junclj @ May 9 2019, 11:27 AM)
My money was burnt in buying shares. The current situation in bursa Malaysia is not recommended to buy shares now. I was lost 30~40% from my total investment in market shares. Now what only I can do is hold for it up to 20~30 years.

Fortunately, I am still young. I can save money to invest in others safer investment such like asb and asb2. My trading account now left untouched, the money is still there. I'm still holding some shares of 3 companies but all 3 shares are losing money. So I not really care about it, although I'm losing 5 digits amount. Few years ago, I was starting to build up another investment in ASB and ASB2. So hopefully I will save up more money in the next few years. My target is 6 digits in next 10 years and 7 digits in next 30 years.
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For years, bursa is known as a crocodile pond and yet many still attempt to profit from it.

ShinG3e
post May 9 2019, 12:25 PM

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QUOTE(icemanfx @ May 9 2019, 12:06 PM)
For years, bursa is known as a crocodile pond and yet many still attempt to profit from it.
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migrate to SGX liao. brows.gif more choices and transparency. brows.gif
PrincZe
post May 9 2019, 01:33 PM

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QUOTE(ShinG3e @ May 9 2019, 12:25 PM)
migrate to SGX liao.  brows.gif more choices and transparency. brows.gif
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boss shing3e, does this mean sgx got better returns/ rates as well?
ShinG3e
post May 9 2019, 01:37 PM

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QUOTE(PrincZe @ May 9 2019, 01:33 PM)
boss shing3e, does this mean sgx got better returns/ rates as well?
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oooooohhhh wait i didn't say that. innocent.gif

there are better returns/rates elsewhere around the world or even in msia but there are some solid factors that makes me consider SGX such as

1. government regulator and authorities credibility like MAS
2. choices of company in SGX, more diversified and covers alot asia pacific, some europe, some US...
3. the forecast of MYR/SGD appreciating
4. etc...

many more. can compare and see see if you like whichever suits your investment appetite.
[Ancient]-XinG-
post May 9 2019, 02:38 PM

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Up to date.

Tio burn around 6k.

Most from UT.

Lesson learned is that. Anything that move daily. Don't ever lumpsum. And don't be easily emotional breakdown.

Really grateful that I still hold to my principal that don't know anything then don't invest in that. If not I will tio burn more bad in crypto, shares.

UT tio burn because no study about it. Don't know deep just dive in it. Now invest according to region etc etc. More systematic.

I myself quite conservative. At least 60% in ASNB FP. That really save me a lot.
alexkos
post May 9 2019, 05:21 PM

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I huat 140% then crash 25% super painful, now only play indexing...

Never burn, never know your limit hehe...
alexkos
post May 9 2019, 05:24 PM

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Lesson learned

1. Markiel fooled by randomness
2. Bogleheads indexing
3. Efficient market hypothesis masuk tong sampah.

Why? Coz when crash, your ahpa ahma also can't recognize you. No need talk growth value momentum investing, TA, bla bla bla.

Worst if you signed up for margin.
alexkos
post May 9 2019, 05:25 PM

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Advertisement time

In times of market volatility, pls consider indexing as one of the way to preserve your wealth. Click on my signature for redirect. Sekian.
alexkos
post May 9 2019, 05:26 PM

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QUOTE(lowya @ May 7 2019, 08:52 PM)
just remember this:  when you -50%, you need +100% to make it back to where you came from, and it's almost impossible given that if you cannot make positive investment.

This maths is hard coded to make people lose in investment especially without first understanding risk of ruin.

If you don't know this, you will probably tinkle with martingale and end up ruining your portfolio.

x% traders will lose x% of their portfolio in x days. You tell me what is x=?
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alexkos
post May 9 2019, 05:29 PM

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QUOTE(wongmunkeong @ May 6 2019, 11:42 AM)
1. Be unemotional - use pre-planned If-Then-Else (eg. portfolio rebalancing IF.., IF x falls 20% or more.., IF..), numbers/knowned,
NOT based on feel/crystal balls
Do NOT "plan fire escape during fire". That's where fear & greed jumps on me.

2. All financial plans are useless - it's the planning that is useful.
ie. the logic/reasons/whys. Thus, one can always tweak when things happens or goals moved/changed

3. All financial goals are really life goals.
If i dont have a burning reason WHY i NEED to reach the goals... then.. meh.. i won't carry through
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Ah wong, can we be unemotional? Kahneman say cannot. Thaler juga.
alexkos
post May 9 2019, 05:31 PM

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QUOTE(Jordy @ May 6 2019, 06:03 PM)
You are right, and my mistake should serve as a lesson to all other young investors alike.
Well I was young and naive back then with nobody to caution me on such stuffs, I had to learn everything the hard way.
But being burnt is one sure way to keep improving yourself.
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Yes... Averaging down is painful to watch in hindsight....

We human got overconfidence issue... Janji proven correct by keeping our hopes on falling stocks sad.gif
alexkos
post May 9 2019, 05:34 PM

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The aunty uncle keep told me if they only bought public bank in 1997....but got another bank bankrupt that time... What name d?
flight
post May 9 2019, 05:59 PM

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QUOTE(David_77 @ May 9 2019, 08:45 AM)
I think you are wise cos might be a case where they are using your bank account for money laundering.
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5k to rm300k. I dont know what it is, but i dont think its money laundering.

Anyway, from my expe4ience. I averaged down into a company with a strong track record. 15 years profit, revenue and equity from 20% cagr every single year. They invested into the wrong sector and took a major hit. I thought they would rebound in 1 or 2 years. It took 3 years and even today they r still working through their issues.

I lost 6 figures at the low. However if i had held it to the rebound i would have made double or triple my money. I was in the red for years. I learned many many lessons. Not just financial lessons.

For me it wasnt any one lesson, i just improved my investing acumen. I made back all my money and quadrupled the original sum.
David_77
post May 9 2019, 06:02 PM

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QUOTE(flight @ May 9 2019, 05:59 PM)
5k to rm300k. I dont know what it is, but i dont think its money laundering.

Anyway, from my expe4ience. I averaged down into a company with a strong track record. 15 years profit, revenue and equity from 20% cagr every single year. They invested into the wrong sector and took a major hit. I thought they would rebound in 1 or 2 years. It took 3 years and even today they r still working through their issues.

I lost 6 figures at the low. However if i had held it to the rebound i would have made double or triple my money. I was in the red for years. I learned many many lessons. Not just financial lessons.

For me it wasnt any one lesson, i just improved my investing acumen. I made back all my money and quadrupled the original sum.
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It’s a public listed company? No clear but you said you recover your principal righty? Even though the company is still working out their issue.

Zhik
post May 9 2019, 06:02 PM

eeerrrmmmnnn, stupidity has no limit?
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QUOTE(thefryingfox @ May 5 2019, 10:24 PM)
I kena burn bad investment mostly in share. Wiped out 80 percent of my savings.....I feel very down for months .....but took it in my stride and pick my self up instead of 14th floor. 80 percent of saving was after 14 years of slogging

Oh well..now I recover and am more contented and do my homework and get wisdom before venture out again. So far just  small small investment here and there
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Bro, hownis ur skill now?
In forex or local market?

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