SGX is HOT! (Discuss hot stocks here!)

[desmondekker]

very true, i find it extremely hard to buy in 2008 market conditions, although everything is half price. lesson learn, next round i'll go for the kill

[blue33]

Yes Capitallmall Asia, secure during IPO and went in again to secure even more when it was still low. Is about timing only.

good share, CMA as in capital mall? pardon me i'm a rookie

[anttz]

I'm well aware that when the market crashed in 2008, many investors were caught with stocks they bought at high prices. But I think it's not necessarily true that they used up all their funds. It's highly likely they still have money to invest but once caught with paper losses, very few would dare to buy anymore. Fear will cloud their minds and the only thought they have is to hold on to their paper losses and hope for the best.

I went around persuading friends to get into the stock market when it tanked in December 08. But only 2 persons took my advice. They are laughing all the way to the bank now but these 2 are people who have never dabbled in the stock market before. For those who were already caught with paper losses, no amount of persuasion will convince them to buy some more.

Fear is a very powerful emotion, just as powerful as greed

Loh K L

How about you KL? Did you laugh all the way to the bank just like your 2 friends? I presume you must have as you seem to be able to control your emotion quite well from your earlier posts.

[timebomb]

How about you KL? Did you laugh all the way to the bank just like your 2 friends? I presume you must have as you seem to be able to control your emotion quite well from your earlier posts.

Oh yes, I did have a good laugh. But I wish I had a bigger laugh

Truth is, I can control my fear pretty well but I was just too careful. I should have been a little more greedy. With a couple of stocks, I more than doubled my money. With the rest, I made more than 75%. I could have invested a lot more but my strategy involves buying in as the market falls. I thought the market would go down to perhaps 1200 points but at about 1500 points, it started to climb. If it had gone down further, I would have invested all my funds and made a lot more.

The thing is, we all knew the market would recover but none of us guessed that the recovery would come so quickly. I thought I would have to wait a couple of years before I can take profits but in the end, I sold most of my stocks in less than a year.

The most important lesson I know is this - It's not what you buy; it's when. If you time your entry and exit correctly, you can close your eyes, pick any stock and still make money.

Loh K L

[tawauboy]

...
If you time your entry and exit correctly, you can close your eyes, pick any stock and still make money.

Loh K L

this is the tough part.

[anttz]

Oh yes, I did have a good laugh. But I wish I had a bigger laugh

Truth is, I can control my fear pretty well but I was just too careful. I should have been a little more greedy. With a couple of stocks, I more than doubled my money. With the rest, I made more than 75%. I could have invested a lot more but my strategy involves buying in as the market falls. I thought the market would go down to perhaps 1200 points but at about 1500 points, it started to climb. If it had gone down further, I would have invested all my funds and made a lot more.

The thing is, we all knew the market would recover but none of us guessed that the recovery would come so quickly. I thought I would have to wait a couple of years before I can take profits but in the end, I sold most of my stocks in less than a year.

The most important lesson I know is this - It's not what you buy; it's when. If you time your entry and exit correctly, you can close your eyes, pick any stock and still make money.

Loh K L

Average return of 75% in less than a year is very good. I’m caught too when the market suddenly recover.

I have a different strategy. My goal is long term. I buy low and hold for passive income. My current portfolios are mainly high dividend bluechip stocks. I may sell off some if the price is crazy (waiting for god of greed to prevail).

I would said correct timming of entry and exit is a bit difficult.

[anttz]

this is the tough part.

Very tough

[timebomb]

I have a different strategy. My goal is long term. I buy low and hold for passive income. My current portfolios are mainly high dividend bluechip stocks. I may sell off some if the price is crazy (waiting for god of greed to prevail).

I would said correct timming of entry and exit is a bit difficult.

Yours is a good strategy, Anthony. The goal should always be long term. When Warren Buffet was asked how long he usually hold on to his investments, he replied, "forever". I think it's a good strategy to think "forever" before buying any shares.

However, I don't hold on to my shares forever. I'll sell when I think I've made enough. Usually, I have to hold on to the shares for a few months or even a few years but the returns are far better than banks' miserly interest rates.

As for saying that it's very tough to time your entry and exit correctly, I would say it isn't hard at all. You must remember that there is something we can do that even Warren Buffet cannot. And that is - to stay out of the market altogether. As individual investors, we do not have to answer to anyone except ourselves. We can choose to stay out of the market. And I'll do that when the market goes on a bull run. I'll sell everything and wait for the next crisis to come around. I'll put my money in fixed deposits and earn the miserable half a percent. I know it's very low returns but I sleep soundly every night And when the market crashes, I'll jump with joy.

Fund managers all over the world suffer from a terrible handicap. They cannot stay out of the market. They have to be constantly invested, either in stocks or gold or whatever. In bad years, they all lose. Temasek Holdings are supposed to be the experts. They have people with impressive credentials who do nothing but study the market all the time. They do tons of research and analysis before buying anything. But what happened to their money when the market crashed? They lost billions.

I like to boast so I tell my friends that I'm smarter than the whole of Temasek Holdings combined. Well, at least I made money. They lost.

Loh K L

[aquarius]

i bought some stocks in nekkei when the market crashed to average out my price. i'm still "under water" man.

According to one of the rules of traders is NEVER EVER cost average your stocks. They cut lost, NEVER average. I believe when you bought the stocks when it crashed these pass 2wks you were hoping to make a quick buck when it rebounds but unfortunately it got worst and went down further. You went and average it by going in some more. Your psychology would have put you in the category of traders/short term investor which means you shouldn't have done what you did. For most of us who are long term investors, the best time to enter is when there is a recession cos even if it goes down lower you'll be able to sleep well knowing that it'll eventually go up when the economy recovers.

Right now with the massive sell off this couple of days any brave souls who are buying now??

From my understanding we're quite likely to be in the begining stage of a bear market. This is my take on why it is so :
China has already taken steps to tighten their monetory policy which lead to a sell off in their indexes. We are nw seeing early signs of a world recovery which though aneamic, hopefully by the end of the yr it'll end with a bigger and more sustainable recovery. Either way it's bad cos if the recovery is aneamic that's bad news for the markets cos western govts will be in a more difficult position to prop up their economy by spending more and pumping more money into the system cos their debt levels is already very high. Right now you're seeing the worry in sovereign debt defaults. If the economy shows strong recovery, govts around the world will have to rein in liquidity which will have a negative impact on the markets cos the 9mths rally is mostly fuelled by cheap money/liquidity. So either way it's BAD news.

[desmondekker]

NEVER EVER cost average your stocks.

i have to admit it was a greedy buy when the market was up, up and away. i count myself lucky timing my 2nd purchase.

when i realised i was in deep trouble stop loss is unthinkable! you know, one foot in the grave, might as will have the other foot in.

thanks for your insights, i'll be more disciplined with my next dealings. cheers!

[anttz]

Yours is a good strategy, Anthony. The goal should always be long term. When Warren Buffet was asked how long he usually hold on to his investments, he replied, "forever". I think it's a good strategy to think "forever" before buying any shares.

However, I don't hold on to my shares forever. I'll sell when I think I've made enough. Usually, I have to hold on to the shares for a few months or even a few years but the returns are far better than banks' miserly interest rates.

I like to boast so I tell my friends that I'm smarter than the whole of Temasek Holdings combined. Well, at least I made money. They lost.

Loh K L

Happy CNY everyone.

As long as the fundamental of the company is doing well, I will hold as long as possible. I have a certain "benchmark/target/criteria" and I believe Warren Buffet has a certain "benchmark". Once a stock didn't meet/meet this benckmark, I selbuy. Same for you KL, when you said you have earned enough what you are saying is you have hit your target/benchmark. I believe every investor has his/her target and planning before making any investment decision.

Actually you are not showing off and I believe this is your internal subconscious thinking.... errr don't know how to put this down in word. Trust you know what I meant?

[anttz]

From my understanding we're quite likely to be in the begining stage of a bear market. This is my take on why it is so :
China has already taken steps to tighten their monetory policy which lead to a sell off in their indexes. We are nw seeing early signs of a world recovery which though aneamic, hopefully by the end of the yr it'll end with a bigger and more sustainable recovery. Either way it's bad cos if the recovery is aneamic that's bad news for the markets cos western govts will be in a more difficult position to prop up their economy by spending more and pumping more money into the system cos their debt levels is already very high. Right now you're seeing the worry in sovereign debt defaults. If the economy shows strong recovery, govts around the world will have to rein in liquidity which will have a negative impact on the markets cos the 9mths rally is mostly fuelled by cheap money/liquidity. So either way it's BAD news.

I'm actually quite happy the Chinese government have taken steps now rather than to wait for the bubble to grow even bigger or worse explore by itself.

[desmondekker]

Hi, bonus time is coming! Any views on buying CMT below S$2.00?

[barmby]

Straits Times Index cross 3,200.00 ...........wow..

[blue33]

Volatile day ahead, just like SGX stock. lol

[FC]

Hi KL,

I read through your posts pertaining your investment strategy. I could not agree more.

I started investing in 1998 and stopped 2 years later because I just do not know the game and lost a few hundreds. I became active again after the 2008 crisis and I made a small fortune last year.

At this juncture (of bear stock market) and few weeks ago, I was lost of how I should go about this time round. I am fortunate to get your views and advises. Now, I have better mind how to do it right.

Many thanks!

[timebomb]

Freddy, now it looks like a start of another bear market. Market cycles seem to be occurring with greater frequency. It's just barely 3 years ago when Lehman's Brothers collapsed and cause the stock markets to crash. Another crash seems to be in sight now.

Remember this - in a bull market, any idiot can make money. It's how to survive a bear market and still come out on top that makes the difference. We're in for the long run and our goal is to be a winner in the end. Better to make just one cent than to lose a dollar.