A brief review of my investment activities in 2020The global pandemic due to Covid-19 has caused unprecedented social and economic turmoil. The crash of US and global stock markets has generated excellent opportunities for savvy investors. Though I have had a little experience with the Chinese stock market in 1990s, the experience was utterly unpleasant. For a long while I have hold rather negative views towards the stock market, and have never invested anything in it ever since.The pandemic changed everything, as most people had to stay at home and find some past-time things to do during the lockdown. Attracted by the very low stock prices in the market, I started to put my money in since end March, after returning from US and during self-quarantine.My first experience of stock inves
Controlling one's mood while in the heat of investment
My daily life is seriously impacted by my daily investment activities in the US stock market. I got up in early mornings, like 1 or 2am, then slept again around 6am, for less than 1 hr. I only sleep like 4-5 hours per day. My mindset has not been in a research mode for a long time - I do not have the curiosity to read literatures, and the urge to complete unfinished manuscripts. Fluctuations in the market, hence the loss and gain of my account, disturb/disrupt my mood. I am afraid I am in a state of depression. How's to control one's mood then, while being in the heat of investment? first and foremost, reduce my investment moves to absolute minimal - use the simplest method, and do not use complex investment 'strategies' that consume my brain; care less about the market ups-and-downs, as t
Have learned heaps of things over the past one week, due to the heavy loss of my speculative account for shorting the three EV stocks. Such a move is out of my fundamental belief that these stocks are way too overpriced, and got too much squeezed within such a short timeframe, to an extent that cannot be sustained, and must be cooled down whatsoever.Even though the concept of clean energy vehicles is consistent with our time, it still needs a proper growth curve and path. Fierce price squeezing by institutions and frenzied investors will do nothing good but cause hugh loss of investors.However, I must have shorted these stocks too early, and without a proper position taking. I underestimated the frenzy. The expiry date of my share options will be 18 Dec so I still have four
The stock market has deeply changed me, my thinking, my daily routines, my way of money management, and many others. I've never imagined that Covid-19 could change one's life so much, even at the start of the year. While still heaps to learn from the market, I start to enjoy riding the tides in the stock market, be less stressful when losing money, and less excited when making a good profit. From earning a profit simply by luck, to being able to analyse the market, feel its pulse, and appreciate other great investors' thoughts, what I've learned from the market is like a whole lot of finance education. The more I understand it, the more I feel calm and easy with the constant chaos, noises, hypes, temptations, ugliness and gracefulness in the market. What a great opportunity machine it is,