Saturday, January 16, 2016

Controlling my emotions in this bear market


I unleashed my greed in August, September, October of 2015 and now with the market sell down again ....honestly, i finally feel sick. My capital gains from my greed in 2008 and 2009 has been totally wiped out due to my greed in the 3 months of 2015 and i am truly 'sian'.  My total portfolio of stocks and bonds is now down 5.5% . I still have a warchest of half my value of stocks and bonds and the dividends i get monthly helps alleviate the pain. The other painkiller that i use to remind myself is that the accumulated dividends over the years has more than made up the unrealized capital loss of 5.5%.

Seriously, i thought i could handle this bear calmly having been through the Lehman crisis but i still can't. Truly, i'm having some sleepless nights and its affecting my work slightly as my eyes are frequently glued to my bloomberg app.

Everyday is an emotional fight within myself to "hold On" ...don't press the buy button...dont be greedy...pace yourself...while the other 'evil' side in me tells me to buy,buy,buy,buy,buy,buy ... Its the greed of losing out on the opportunity of buying at cheap prices versus the fear of prices further plummeting.

Anyway, let's see how it goes and the big question is ...Is this just purely sentiment driven or is there some deep problem going on? George Soros has said there is a looming crisis, and he is a $27 billion networth big fish...who am i to disagree with him but then again, he is a hedge fund person and may do the opposite to what he says.......argh mental struggle again!

9 comments:

  1. hey you still have a seriously big warchest!

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  2. Dwindleing rapidly and lossing more and more in unrealised losses..sick feeling ...

    Now trying to have faith that prices will again go up. :)

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    Replies
    1. opportunity coming soon.

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    2. opportunity came, let it run a while, it may be a short time. don't hesitate this time.

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  3. Nowadays, with Apps on our mobile phone, it is harder NOT to check on market as we don't have much concerns over bosses or colleagues knowing our "unproductive works" activities. LOL!

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  4. Yes you are right! Thats why this is very harmful for investing also as it feeds your emotions seeing up and down or rather down down down now...i have been mentally training myself to check the app once every 3 days now...no success..

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    Replies
    1. by all means, check. but try delay your action by imagine another sgdividends in an alternative universe already bought.

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  5. kyith not wrong. you are on ok ground. your warchest is still mainly intact. tell yourself, it is just the kiasu feeling in you and that the fact you can still feel greed is better than feeling only fear!

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    1. Hi SMK, thanks for the alternative universe theory haha..it doesnt help though

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