Why So Many Lose Back Profits

Joes
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10 years 11 months ago #14286 by Joes

Replied by Joes on topic Losing Money In Bull Market

Hold on to your good stocks. the best is yet to come. The title of this thread should now be changed to "Why so many don't make big money". They sell too quickly!

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lotustpsll
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10 years 11 months ago #14291 by lotustpsll

Replied by lotustpsll on topic Losing Money In Bull Market

Cant agree more. For my case it brings me back to 1989. Took position on HSBC for hkd5, stock was bashed due to Tianamen Square Incident. Sold out at hkd8 3 months later. 2 years later it was hkd250. Have been doing well since global financial crisis in 2008. Have had a number of 2 to 3 baggers. What are the learning points - keen focus for value stocks, look for high dividend yield, stay close to your picks, be aware of the stock catalysts, do not be afraid to cut loss, stay with your winners, be nimble to restructure portfolio, look for secular trends etc. Be patient with your good stocks and stay the course. Timing the market is not encouraged.

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Joes
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10 years 11 months ago #14293 by Joes

Replied by Joes on topic Losing Money In Bull Market

Hey Lotustpsll: you are a seasoned investor? Wah. What stocks are you holding now which can be solid gainers in due course?

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lotustpsll
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10 years 11 months ago #14297 by lotustpsll

Replied by lotustpsll on topic Losing Money In Bull Market

My focus is on high dividend stock. Shoot for the yields and enjoy your income. Capital gains will be added bonus. General parameters - strong management, simple business model, positive sector, sustainable dividend payouts. I do like singapore reits (mainly industrial), some strong small caps (king wan, neratel, K 1 venture, UE E & C). Also into healthcare - First, Religare. There are many books written on value investing - get them and read. Develop your own investment philosophy. Understand the stocks that you buy and stay away from hot speculative tips. Enjoy your success and be humble!.

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Rock
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10 years 11 months ago #14298 by Rock

Replied by Rock on topic Losing Money In Bull Market

The reasons many sell out too early are:

1) Kia Su mentality - These people only want to win but dont't want to lost. They feel very painful to lost money. Usually they will sell off the winners and keep the losers. As a result they will end up holding onto all the losers. These people will wait till the next bull market so that they will have the opportunity to sell off the losers to make some money. These people will always regret selling off too early.

2) Greed - Greed will easily cause us to lost our head and chauses after stacks. As a result will be caught off-guard by market correction.

3) Dreamers - These people thinking what come down will goes up again. They think that the bigger the difference from the last high price give the biggest margin. Dreamers set target and full of hope. E.g. When their share rise to 10 cent, they will cheer on and say next target will be 15 cent and then 20 cent in a few days time. Woh! seen so easy to make money. 10 cent to 15 cent and then 20 cent is 50% and 100% in just a few days.

My idea is basically capital protection and enjoy passive income. I will review my porforlios from time to time and not influence by daily market fluctuation. I divide my holding into 3 groups.

1. REIT - For this group I will gradually sell off when divident yield below 6%. As at now REIT yield is about 5% my REIT holding is minimum.

2. Under value properties - For this group I have sold off more than half my holding as I believe the upside is limited.

3. Growth Stocks - I will review the growth potential. So far I had sold off about 10% of my growth stocks.

At this point of time I don't see much upside my cash holding is about 50%. I will start to accumulate when I find good divident yield or good value.

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Val
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10 years 9 months ago #15486 by Val

Replied by Val on topic Losing Money In Bull Market

What to hold and what to sell for a profit -- it's not obvious always. For example, Oceanus was a very promising stock 3 years ago. It might now be a billion-$ company but the bloody Chinaman CEO (ex-CEO now) screwed things up.

Some companies look boring and will never go anywhere in terms of stock price. So you exit -- or never get in.

But look at King Wan Corp. Boring M&E business but its investment in its Thai associates has done superbly and the stock has gone up 100% in the past year.

Now I am wondering what kind of stock performance that Eratat Lifestyle will deliver...The crystal ball is opaque. U got a clear view?

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