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very depressed after losing $13K in stocks.

I think most who invest in stocks want to make decisions n hope for better returns against low bank interest rates. Unfortunately, poor stocks pick may result in negative returns. As stock market move in waves, this is no place for guaranteed returns. For mini risk, I do recommend a guaranteed fixed deposit or buy a 10 year bond or go back to school and then dress up for an interview or buy property (poor property pick also translates into a loss)...

 

I'm one of those who has consistently lost money every time I play with stocks. I have decided to switch to safer instruments like funds. I don't think I'm suitable for stocks.

:(

 

Teeth53,

What you said is absolutely true...

One big losing trade is enough to wipe out all the gains made in ten winning trades. Sad to say , but I believe this is a very common occurrence.

My opinion is that it is not so much the greed as such. Because I believe a lot of people who are not 'greedy' also experience it. Some just want to wait a little while longer, or maybe they could have unluckily miscalculated just a little bit, and thus get caught. Thus it may not be because they are greedy, but rather their calculations are wrong.

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I don't play contra or borrow money from banks to finance any investments. I invest with what I have and re-invest what I make from the stock market into my next trade.

I find that if you play contra or borrow money, you're really playing with fire. And because of this, it will affect your trading mentality because of the high risk and you will not be objective when you trade.

This will cause you to lose more money. Its a vicious cycle.

 

Everyone it learning how hard not to be greedy, after more then 30 years into stocks trade. i am still tellimg myself, don be greedy. One greesy greedy decision, all gone, 9 out of 10 stocks that made money oso can't even match just once, further to this if more greedy then grees (MATI liao) and that is GREED.

 

don't feel sad Bro, this is life. every body make mistake! most important things is we learn from mistake and move on!

 

i realize that my financial mind is that of the mentality of a 15 yr old kid. risk was an unknown concept. Well, now i understand risk. I wonder if its time too for the markets to understand that.

 

Hi lewsh88

Kudos to you - you did excellent putting your 2 sons thru the U with only an "O" level.  I also happy that you are now enjoying your retirement years.

Its not easy to stay working for 43 years and not be tempted to take kick-backs.  Like you said, we must live within our means.  Just look at Matthew Tan, the former swimming coach.  Its such a pity that he resorted to embezzlement to solve his financial situation, and only $61K!

Thought I've not worked 43 years, I decided to retire early and I am happy doing missionary work in third world countries.  Its true I dont have a regular income and there are more outgoings than incomings, the satisfaction of helping the needy is beyond words.

So Robin, you are still young and have a life ahead of you.  Treasure what you have. I am very sure you will soon recoup your losses, just like the rest of us. 

 

thanks ipunter and lewsh88, especially, for those insights. Yes its really scary tt big boys make such mistakes too, the supposedly experts. Seems like short term trading is dangerous if one does not know wat to do, or know how to cut loss.

This forum have really seen much participation and lots to learn! Keep sharing. Thanks!

 

Hi robinpang and others who are still studying especially if supported by your parents:



As a hard working parent who had supported two sons through university, (one locally and one doing who did his post-graduate in London), I have a few tips for you:



1. Unless you have formal training in stock market trading, buying and selling stocks is no different to a casino. Even with formal training, some people also lost their underwears - remember Nick Leeson who caused the collapse of Britain's Baring Bank; former CEO Chen Jiulin of CAO and lately the 35 year old Japanese trader who lost S$126 million of Mitsui Oil's money? These three musketeers of Stock Market are no small fries. They are experts in stock trading. They bet wrongly. In the end, they are no better than the Ah Pek who buy toto in the neighbourhood shop. Many other high powered equity traders will make blunders in future, because they bet/speculate. They are greedy.



2. Spend within your means. Don't borrow. Most of the suicide cases and people who go to jail for cheating or stealing money from their companies have similar stories. They lost money in gambling and "playing stocks" or they live beyond their means - follow the Joneses. 



3. Be honest. Throughout my working life, I encountered many opportunities to get "kick-back" commissions in negotiating for purchases of very expensive equipment for companies I worked in. I did not take one single cent. I retired with a clear conscience. I sleep peacefully every night without a concern in the world. No stress - no worries.





4. There are two ways to spend money, namely "Suffer first, enjoy later". and "Enjoy first, suffer later". I belong to the first type. With only O-level education, I had to work hard for 43 years till my retirement last December to put my sons through the U. I trade stocks a little bit with my spare money. Very lucky I did not lost my pants. I am not rich, but I am happy and most importantly, healthy.



5. If your parents financed you through your education, remember to be filial to them. Be nice to them. Remember our Asian (yellow skin) roots. We are different from Caucasians, some of them call their fathers by first names. We don't.



Cheers. 

 

Hi robinpang,

Aren'y you lucky to receive so much attention from our friends here :) .

So hope you won't be so depressed anymore and  look foreward to a brighter tomorrow. Also, you must not feel that you are singled out as having lost in  the market - countless have the same experience as you.

In addition to all the technique books you can read, it would be even more important for you to read more books dealing with human psychology and risk. It's all about risk.

Hope you succeed in your Web ventures.  Take care :).

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Hi robinpang,

Before I joined SJ, I knew nuts about FA and TA... but after reading posts from the people here, I'm starting to get the hang of using techniques in my trading.

Nostradamus posted some links for you. Those are really good. I have bookmarked them already!

 

thanks teeth53 and hohokit. These are good advice for me to meditate with. Wise men.

 

Just trade with care..GREED is the greatest enemies that lies beneath right in our subconscious mind. Never to under estimated your every own enemies within oneself. Yahh...This called for metal self-discipline & patience to remind oneself thou.

 

The share market is always around to let you make money just take your time,no hurry. 

 

thank you very much nostradamus and ipunter for your valuable posts. I agree now that unless u have lots of cash, it is hard to make good money from stocks. The reason i got greedy was because initially, i made some gains (between 5-20%). But because my capital was too small, it only resulted in a few hundred dollars. Before i could even continue from there, contra killed me.

I think margin trading is interesting. However, i am not sure where the economy for US, STI and DOW is heading next. Right now, i;ll just earn back my money and watch the show from the sidelines. It wouldnt be wise buying stocks in a recession anyway right..(?)

I think a small correction is starting tonight.

do read an article posted here regarding how US dollar will continue falling with adverse affects

http://www.geocities.com/rbn_png/index1.html

click "author's take on the economy"

Thanks for supporting the webpage

 

Hi robinpang,



Maybe you should buy a good investment book. Or you can take your time to browse and search this website. Because there're also some good threads here including the following:



20 Rules for Investment Success

Common mistakes most investors make

When to SELL??

Counters held

When to BUY??

 

Hi Robin,

You are not the only one who have lost. You just have to take your losses as 'tuition fees', which you, of course, unwillingly paid. The only way you can win big in the stock market is to also be able to lose big when you lose. This means you have to be able to afford to lose big before you can make it big. Thus, the stock market is really not for those who can't afford to lose big without feeling the pinch, ie. you must be reasonably rich in the first place to make it in the stock market. For us small timers, if we play well and within our means to lose (using 8-10% of capital per trade), we can only hope to make some pocket money. The stock market is not the place for those who are not rich to become rich. The casino would be a better place for that purpose. Of course if you adopt the philosphy expounded in "The Zurich Axioms", you would be inspired to play big. But there again, the Axioms are also most suitable for those who are already rich to practise.

So the most important lesson to be learned by the average stock market punter is:

Bet small, lose small.

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Trade With Care

 

Hi Robin,

Try margin trading. But for this you have to do it with care and don't "overstretch". Margin trading gives a bit "more room" to play.   

 

I benefit alot from SJ sharing.  It is a caring forum.

Robin, i would like to share with u how i invested for my son who also 26 years old. when he returned  from USA after his study in 2002.  He passed me S$20K (he sold his car) and i bought 20 lots CapitalMall Trust at S$1.07 for him. After his NS and working for one year, he saved another $16K.  I invested for him 10K of CapitalMall Comm at S$1.68 this year August. I invested in REITs and blue chips becos I take care of my family finance and i have to be extremely careful in my investments.  I would like my son starts his investments on the right track until he equips with all the right knowledge.

I do not know TA at all before i join this forum.  I appreciate the forumers, sifus who are so willing to share.  i am going for a TA class soon.

Robin, you are still so young. Sharpen you tools and restart again.

God bless.