TheMilkyWay
2022-05-10

$SEA LTD(SE)$A few investment terms that are over-hyped: 

1. Growth stocks - you can buy growth BUT only when the stock has shown consistent profit for at least a couple of years & strong cashflow/ you are a disciplined technical analyst that only buys at the lows 

2. Passive investing - even after you've sniped great single stocks to invest in (obviously not $Sea Ltd(SE)$), you must know when to trim/ sell all position to take profit then go back in later. Yes, you can hold for decades, Warren Buffet-style but not everyone has decades & you also need to build more capital to inject back when the stick orice is low

3. Diversification - i feel like diversification should strictly refer to buying ETFs, which would allowyou to do quite decent as long as you get into 2-3 right ones not at ATH, & not buying a variety ofsingle stocks. Many advised not to overdiversify with stock picking & it seems like the average number of single stocks people invest in is 7-8 but I realised even that is too much. We forget that 1.people have different capitals & 2. most people are not full-time traders & cannot monitor so many stocks effectively. If you have 50k, which I thinkis already a rather large sum for beginners, what's the point of holding 7-8 stocks? Your profits are going to get diluted during a good run, might as well buy ETFs if you are that risk adverse. When there's a downturn, how do you decide which stock(s) to buy the dip on because your war chest is so limited compared to someone with 300k. I think 4 stocks in this case would make a lot more sense. 

#lessonslearnt

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Comments

  • ___ _
    2022-05-10
    ___ _
    it had been a painful 2022 thus far and everyone has learnt their lesson some way or another.  Thank you for sharing.  Good points to ponder upon.  😊
    • TheMilkyWay: 
      many made it out to be during 2021 (the whole “diamond hands” wave gone out of control).
    • TheMilkyWay: 
      Just hoping new investors would find this helpful [Shy] The aim is not to advise anyone but me feeling passionate that new investors should not blindly buy into “growth” without some kind of track
    • TheMilkyWay: 
      record & “buy good companies & just hold” & diversification without calculating if the diversification makes any sense. Basically, just like many things, stocks investment is never so simple as what
  • Chrono
    2022-05-10
    Chrono
    Looking at your loss, how do I take your advice seriously?
    • TheMilkyWay: 
      mistakes & what they learnt from them & encourage one another. There are also many approaches & strategies to investing, if you strongly disagree with anything that I shared you are welcomed to give
    • TheMilkyWay: 
      portfolio, hence, the hashtag #lessonslearnt at the end.
    • TheMilkyWay: 
      constructive feedback, instead of simply trying to emphasise on how I have made a huge loss on a stock.
    • TheMilkyWay: 
      Maybe you should stop assuming everyone who posts here is trying to be a guru dishing out “expert” advice. Do understand that there’s a friendly community here who share what they know but also their
    • TheMilkyWay: 
      2 things: 1. it’s sharing, far from being advice; 2. you don’t have to. The sharing is the opposite of what I did that led me to this huge loss in $Sea Ltd(SE)$ & a much smaller loss across my
  • PandoraHaggai
    2022-05-10
    PandoraHaggai
    Why did you buy the stock?
    • TheMilkyWay: 
      timelines, capitals & strategies.
    • TheMilkyWay: 
      Because was stupid as a new investor. Blindly followed “buy growth”, “diamond hands” when these advice had been over simplified. The market has many nuances. People have different investment goals,
  • HilaryWilde
    2022-05-10
    HilaryWilde
    Your costs are too high to be honest.
    • TheMilkyWay: 
      Yep, agree, as stated under my first point.
  • DonnaMay
    2022-05-10
    DonnaMay
    I think you should learn to cut your losses.
    • TheMilkyWay: 
      Yes, agree, as stated under my second point about not blindly following Buy and Hold passive investing.
  • Frodo555
    2022-05-10
    Frodo555
    Good sharing buddy! It is a tough year [Cry]
    • Frodo555ReplyTheMilkyWay: 
      [Happy] so we can only learn the good things from him but salute him that as his age he is still sharp in his mind [Happy]
    • TheMilkyWayReplyFrodo555: 
      Not financial advice but I do think your this plan of selling those with smaller losses now & DCA into Apple is wise. Cos we dunno where the bottom is for these other growth stocks. At least for Apple
    • TheMilkyWayReplyFrodo555: 
      I was just saying the other day to someone aiyah just follow Warren la! How is he still such a good sniper at 80+ years old?! Then again he has decades of experience. Then I realised we cannot rely on
    • TheMilkyWayReplyFrodo555: 
      Hmmm I think Apple & Microsoft ok. I dont really like his other dividend stocks. A few have also being running high already scared to chase high already [LOL]
    • TheMilkyWayReplyFrodo555: 
      him for long either. Dude is almost 90. [OMG][Surprised]
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