To The Moon

I have accumulated more knowledge from investing in 2023. It's because I've made so many mistakes (and a lot of losses). Thats is why i still consider myself a newbie. The key mistake I've made is following my human nature and dispensing of my "principles".

Let me share with you what I've learnt and didn't learn:

1. I couldn't prevent myself from buying when stocks were green: In order words, FOMO. For most of the year, I have restrained myself from jumping in whenever stocks go through the roof. I have done this by trading passively and not jumping at key financial events like Fed announcements or earnings reports. However, there are times when I see $Tesla Motors(TSLA)$   or $DBS GROUP HOLDINGS LTD(D05.SI)$   jump, that I want to join in. I think I made a crucial mistake with Grab and $NIO Inc.(NIO)$   by jumping in recently and buying when they were rallying/green. Despite learning this lesson in 2022, it still repeats and I'm always reminded with some losses.

2. Relating stock growth with recent events: Stock prices rising or falling during the moment are never indications of company/stock growth. Sure, they could be indicative of things to come, but true growth and real profits come in over the long term. This is why I try to turn a blind eye to occasional events but focus on the horizon. This is also my impetus to hold. However, when my resolve falls due to point one, I realise that I tend to panic and try to earn or cut profits due to "imaginary consequences" (e.g. the stock has reached its peak, its time to sell). I have lost a lot this way, especially with $Grab Holdings(GRAB)$ , missing out when it hit $3.80.

What's to come:

1. In the coming year 2024, I expect the unexpected, but I want to extend my resolve to hold. This means exercising patience and more importantly, allocating money to investing that I do not use for immediate needs. I've learnt to set aside what's required for household expenses, taxes, leisure, etc and to set aside a "sure lose" amount to invest.

2. Expect the unexpected: I've mentioned it before but I'll mention it again. Rate cuts definitely equals rising stocks? Never! I remember thinking rate hikes would cause bank stocks to rise. Well, today $DBS GROUP HOLDINGS LTD(D05.SI)$  is still the same price it was almost 2 years ago at around low $30s. It would be better to stick to a constant investment plan. Its not that DBS didn't rise. It did, over a few years. It was almost $18 around 4 years ago. Constant investment over years will yield more profit then timing the market because you can never time it correctly forever.

Thus, with all these lessons, I am ready again to face 2024. I feel that the most important thing to do is to apply these lessons and not to give in to human nature. Here's to a better and profitable year for all!

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