Wednesday, October 28, 2015

Investing in Stocks is like a game...

Investing in stock market is like a game, you win some, and loss some.

Just yesterday, I blogged about an announcement from HTL caused the stock price to surge almost 100% within a day. This morning, another announcement from Lippo that they may move two REIT's, namely First REIT and Lippomall Indonesia Retail Trust to Indonesia cause the price of these two counters to tumble. To rewind back a few days, an announcement from Saizen REIT that they received an offer for their assets caused its price to surge as well.

Retail investors have no access to these informations beforehand. By the time we know it, it's already to late to act as the prices would have already moved. So it is like a game to us, sometimes we win, sometimes we loss. For the above four counters, 2 went positive, and 2 went negative. So it wasn't too bad for me.

For this kind of unexpected news, there is ready not much we can do.Perhaps the only things we can do are:

1. invest only in stocks with good fundamentals, so the surprise won't be so dramatic.
2. diversify your portfolio, so the impact of such event won't be too big to swallow.

34 comments:

Jimmy L said...

well said

Singapore Man of Leisure said...

Sanye兄,

Just like backgammon, mahjong, poker, luck plays a part in the game.

Over the long run, a more skillful player will come up on top ;)

But that does not take away the embarrassment of us teaching someone new to the game how to play and have this newbie beat the pants off us through pure dumb luck!

LOL!

Createwealth8888 said...


Agreed on luck part.

Over the long run, bet 4D also lose money when luck runs out.

One colleague told me that many years ago, he has won 4D First Prize about $125K but he roughly counted that he has lost back all $125K plus much more. He didn't strike first prize again but still hoping!

Jason said...

Hi Sanye,
Could you share with us how do you really build a good portfolio from scratch that last for years.

Regards,
Jason

Sanye ◎ 三页 said...

SMOL,

I can't agree with you more. The only difference is, since I am a Christian, I don't call it luck, but blessing. :)

Sanye ◎ 三页 said...

CW8888,

I have never won 4D except once, when my car number came up 3rd prize. I have since stopped buying 4D, realising that the win did not cover the cost at all. Since than, I saved $1,000+ per year. That is equivalent to one win per year.


Sanye ◎ 三页 said...

Jason,

Ok, I will think about it and write a post on how I started. Stay tuned.

Low Paul said...

Point number 3: don't think too much about the unexpected since theres nothing we can do. Instead keep on adding...
Cheers!

Sanye ◎ 三页 said...

Hi Paul,

Thanks for adding point #3. I think this only applies to people whose portfolio is already generating good income, or those who have a big war chest. I will say, "... keep adding when there is opportunity."

Cheers.

Sanye ◎ 三页 said...

Ooi.. anther curve ball hurling from Mr. Market? Just saw Cache Logistics Trust trading halt.

No information at all. Anyone has any? Hopefully good one...

tan andrew said...

Hi....jus say congrats on your returns on the dividends. I know nuts about shares. Got a sum of cash to invest but dun know which are the ones which gives back good dividends hope to hear from your advice . Thanks

Sanye ◎ 三页 said...

Hi Andrew,

Thanks for dropping by.

Without knowing more about you it is difficult for me to give you any advice on which shares to invest in. First you have to ask yourself:

1. What is the objective of investment?
2. What is the time frame of investment?
3. What is my risk appetite?
4. What is my expected return?

You said that you know nuts about shares. Then don't rush into investment. Go find out more about it.

To find out which are the shares giving good dividends, there are many website out there tabulating shares and their yields. Fellow blogger Jimmy L's dividend stock tracker is one of them. Here is the link:

http://mycreativeinvest.blogspot.sg/search/label/Dividend%20Tracker

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tan andrew said...

Hi..I am kind of late into investing, am presently in my mid 40s. My time frame will be life time at least more than 10 years and abv.. I am a moderate risk taker. My expectations will be at least 7 % and abv.Well objective is to retire comfortably n extra money. ..Hope to hear feedback s thanks.

Sanye ◎ 三页 said...

Hi Andrew,

Thanks for reading my blog.

I don't know what sort of feedback I should give you. To retire comfortably n extra money is very subjective. What I feel comfortable may not be enough for you.

Oh, before we go further, please take note that I am only a normal retail investor but no expert. Don't take my words for granted, as I do make my fair share of mistakes.

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