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Saturday, March 30, 2019

Top 10 1Q2019 Mistakes I've Made from KLSE Investment

My apology as I have been stop blogging for more than 8 months. It's not because I'm busy, just that I'm doing badly last year and I'm trying my best to improve my skill before I can post again. 

Thanks to my poor trading skill, I made a net loss of 102k last year, the worst ever. It evaporates my last few years profit in just within a year. Congratulations to me.

Fortunately, thank God that stock market made a come back starting Christmas and it's on rally.

Last month, I have been making back around 40k but it's been dropped to 30k up to yesterday. Congratulations those who not only made back those they lose last year, but with a lot of gains as well. I can only say that I have a lot more to learn.

With the past trading records, I've concluded top 10 stock investment mistakes I've committed over the 1st quarter in 2019. With these mistakes published and shared, I hope we all can learned from mistakes and we can do a lot better in 2nd quarter.

1. I did not dispose the losing & stuck stock at the right time when market rebounded 1-2 months ago, which give me the golden opportunity to change to better potential horses. I did dispose 2 or 3 stocks, but I should disposed all the lousy stocks instead.

2. I've wrong mindset (too positive thinking) that my losing & stuck stocks (lousy fundamental companies) will go back to the original state like other strong horses (DAYANG).

3. I've wrong mindset on over optimistic that the stock price will shoot up after bought during bullish days, and over pessimistic that wanted to dispose the losing stock during correction.

4. I've bought & hold too many stocks which unable to manage & monitor properly. And yet most of them are not making money or not under main recovery themes, i.e. O&G / Construction. And now, I have 13 stocks in hand, which is too much considering my fund is relatively moderate.

5. I did not invest based on main / recovery themes, i.e. O&G, Construction, just because I'm lack of good feel, confident, common sense, experience.

6. I followed some buy calls from sifu (paid subscription) selectively, where some of the picks have bad QR and didn't manage to decide & sell on time (the next day after QR). On the other hands, some of the buy calls I didn't follow, they went up at least 20-40%.

7. I do not have a proper cut loss strategy, i.e. must cut loss when the stock drops below 5-10%, or need to do dollar cost averaging (DCA) on retracement (buy on weakness) on very potential stock? I still cut loss and do DCA very much based on my feeling (emotion).

8. I do not have a proper strategy to invest (buy/sell criteria, take profit, cut loss, buy on retracement, capital mgmt, market observation, etc). Since this is the case, I also always changed horses from 1 to another and cause losing more money & confident. At the same time, I do not really know which is strategy is best suit to me, i.e. FA? TA? FA + TA? Follow subscription?

9. I omitted stock investment risks, including losing money, upcoming quarterly result, global market and capital management risks. I simply dumb the hard earned money into the stocks and just think they will make money for me, but without thinking about these risks properly.

10. I obtained the wrong advice from wrong persons (sorry to say we only can know after it's wrong), even though they are sifu level. It's not their fault, as they are not gods, but we have to do our own due diligence & homework as well. From this, I understand the winning strategy in stock market is not 100% correct every time, but it's about optimizing the best probability to win.

That's about the top 10 mistakes I've made this quarter. Hope I can workout a proper strategy and improve my probability in the coming quarter!

All the best, folks!

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