3 Warnings to Remind Myself
I saw this interesting topic that @Tiger_chat pposted. I love warnings and you can often see them in my posts. I also read most of the posts but I wanted to offer something different.
So I thought about it and wondered and wondered. Finally, I thought about what I would tell myself back when I first started in Jan 2022.
Warning One: Spending time studying a stock
Now, I hate studying. And prior to this, when I started investing, I didn't due my due diligence and want to invest in "all the shiny things". Immediately. Basically, all the stocks which people said we're good and would surely rise in price. When I first started, it was $Tesla Motors(TSLA)$ , $Alphabet(GOOGL)$ and $Amazon.com(AMZN)$ . We know how all that turned out. I lost quite a bit before learning that it had peaked in early 2022 and I had bought these stocks at its highest points. I even bought DBS at $37. All these fell and never recovered from their highs. This was a good warning that I should never invest in stocks I don't know the peak of or did not do my due diligence to analyse. Today, I'm a bit more careful to only buy if I know the stock, which isn't much unfortunately, which is why I only stuck with Grab and DBS.
Warning Two: Enter at the right price
This is indeed one of the most valuable lessons I've learnt and it is a lesson of patience. I have learnt from my purchase of DBS at its peak, that even if you buy a good stock but enter at the wrong price, you will only be left picking up the pieces. Today, this lesson is still serving me well as I force myself to identify a price point which is low enough for me to enter. This keeps me from purchasing when stocks are rising without good reason, only to fall a few days later. It also prevents myself from jumping onto the bandwagon out of FOMO.
Warning Three: Trust yourself and hold on
When I lose money (i.e. when the stock price falls) and if I'm sure I fulfilled the first two conditions, I will warn myself to refrain from selling. Having learnt from gurus like @Adam Khoo about how the market gradually goes up, I know that the price will eventually recover. This is because I have learnt (or rather am learning) to live with the fluctuations. It has helped me to hold on and not worry.
Conclusion
These 3 warnings have helped me improve my portfolio. If you look at the fluctuations of DBS in the last 2 weeks, you will realise that these 3 hard earned warnings have helped me reduce my losses. I hope they in turn will help you as well! Have a Happy and Prosperous Chinese New Year!
@Tiger_chat @Daily_Discussion @TigerStars
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