Good Morning ... LCW lost but made all of us proud of his achievements. Liverpool lost to Burnley is to show how inconsistent their performances are .. for past years. Nevertheless, I will always support Malaysia and ... Liverpool.
Yesterday I have another coffee-date with a new-found friend ... yes, I
have many and didn't have the time to write about many of them ... but I
will. Since yesterday's date is still fresh ... let me share what we
discussed about.
Note : A reader does not necessary believe that I really meet
many investors/traders ... it is just my wild imagination-lah .. but at
least could bring back some pointers or experiences shared hear. It is
meant to share experiences on HOW many of us ... went through
market-crashes.
He is Mr DY .,, seen his parents lost their fortune in 1997-1998 crash
but they manage to survive. A strong young man who just came out from
Uni then ... and he said during that time, it was very bad and harsh.
They have to struggle as ... the crash almost tore the family apart.
He worked hard ... an engineer in profession. Then, he opened his own
company ... and managed to pull the whole family together. I admired
such successful person ... strong in characters while maintained being
humble. Mr DY ... I know you are reading this line, I do mean it that I
respect your characters ... and thanks for sharing long strong about
1997-1998 what your family went through. Most people would like to
forget about those painful moments, their struggles ... but you managed
to make me felt so humbled. Yeah ... market-crash will humble all of us.
DY ... went into stock-market around 2004-2005, and initially he was an
investor. He buy good stocks (such as Genting and BAT) and hold ... but
moving into market for 1-2 years, due to bullish market ... he got
little carried away and started to buy into HOT-stocks ... and listened
to recommendation of his remisier. As he got busier ... he does not time
to monitor closely or read about news related to those hot-stocks. Some
of the stocks he bought/punted going lower but he thought they will
rebound ...as it was at end of 2007, where market was bullish .. but his
stocks not recovering well ... and one of the stock in his portfolio is
down by 50%.
We talked about cut-loss ... why didn't sell? I asked.
He knew "BUSY" was just an excuse ... but refusal to lose is more exact.
Well, the ghost of 1998 haunted him ... seeing his parents crushed by
market. So ... he was kinda lost.
Note : Example ... market is bullish now, some thought Sumatec will recover to 50cents?
He continued to buy a few more stocks, ignoring the few stocks in his
portfolio which he failed to dispose. Indeed, it is like collecting more
... hot-lousy stocks. He is trapped into his own mindset ... and asking
around doesn't help him much.
Why didn't you cut-loss?
He was lying to himself ... he told me. He was in denial ... and no one
guide him to cut-loss ... or someone waking him up, to make him do
something different!! FEAR of losing gripping us.
Lessons : ALWAYS know why we buy a stock ... place a CUT LOSS point (say minus 10%, sell).
DY said that he wish I would blog during 2006 period of time and write
about the importance of CUT LOSS. Well, somehow ... remisiers asking
many to buy, only few good remisiers teaching their clients to CUT LOSS.
Why?
In 2008 ... most of his counters tanked badly. By then, he has collected
more than 10 counters!! Market started to show weaknesses in Mac 2008
... then in Nov 2008.
Lessons : Do not keep buying other counters without dealing with the existing ones in our portfolio.
He missed the whole 2008 crash as he is stuck in many ... and most of
his funds allocated for stocks are inside. At least he could still laugh
it off and shared with me his experiences ... recalling how painful
1997-1998 crash was and ... he himself inside the crash in 2008 ... and
yes, I see such a strong personality. Perhaps, that explained why DY
done well in his biz ...
I will not talk about other things we shared (haha ... you are funny
too!) but focus in stock-markets and what I could share with my readers
here our experiences of 2008-crash.
Yes ... there are many of them said that they will join me during
market-crash. Seriously, I do not know if I could really capitalise well
in coming crash, but at least I know I have tried to prepare ... at
least I would not blame myself for being ignorant and didn't CHANGE. I
would not want to lie to myself ... living in denial like many out
there. DY, you are right ... there is NO ONE out there who will guide
others ... to get out of their losing stocks and NO ONE to be blamed.
We have to CUT LOSS ... and he did cleared all his stocks in 2008, painfully lost a lot.
I do believe we all need to make that PAINFUL decision ... and LEARN
from our mistakes, learn from others mistakes. It is never easy ... as
we all know how difficult it is to CUT LOSS many of our stocks during
market crash. Then ... we will be in FEAR ... fear of losing. Many quit
and gave up (which is good too ... if they could not take the pain
further).
DY ... I could not promise you or anyone that we could MAKE IT well this
coming crash. But, yes ... we shall meet again to discuss further what
we would be doing DURING crash. No worry, market will not crash yet ...
and it wont recover in days. We will have time to do our homework ...
just make sure you do not BUY MORE into stocks now. As you will want to
join my trading-workshop (no plan for next one, end of year ....
perhaps), we will be in touch.
Reduce your position ... keep 50% cash is my advice. Be patient ... let
the craziness on and glad we have got over our painful 2008-crash
experiences. Looking forward to the coming one ...
Thanks for the coffee ... and yes, my pleasure to meet you too.
Note : Will write another 1 or 2 of my coffee-date later.
TEH
http://cpteh.blogspot.my/2016/08/post-3456-coffee-date-with-dy.html
