Winter is coming. Again.
Holding to your stocks in a bear market is daunting. Pain.
Let me share with you a Chinese phrase: “顺境不足喜，逆境不足忧”。
It means, when you're in a smooth sailing position, don't be too happy, and if you're in an adverse situation, don't get too worried.
For those who have stocks that are currently in a profit state, don't get too complacent.
For those who are holding to stocks in losing positions, don't get too worrisome.
One should face the ups and downs of the stock market with a calm state and a rational mindset.
Investing decisions should not be dictated by emotions, but with research & facts.
Take the case of DUFU, which has plunged an alarming 27.85% in the span of a week. (from RM2.37 to RM1.71)
DUFU's management was honest to point out the bleaker outlook of its HDD business. The management has integrity.
However, share prices went southbound, as if its shareholders never expected the semiconductor industry slowdown.
By now, most investors should realise that, those beneficiaries of the 2020 Covid 19 pandemic, such as gloves stocks & semiconductor stocks have started to lose its appeal due to its strong growth peaking or have started its downtrend recently.
It was smooth sailing for these stocks from 2020 to 2022, and such shareholders shouldn't get complacent.
If I were a DUFU investor, I'd hold for the next few years, (since my approach is to buy and hold indefinitely), and I think that the demand for data storage would continue in the next few years due to higher megapixels of video cameras, etc. , increased digitalisation of businesses and the capability of its management to grow its business well in the past.
In the short term, it is hard to see how low would the stock go. Of course, some investors would think it's more prudent to cut first instead of suffering heavier loss later.
Hence, it is crucial to determine the type of investor your are, and how sure you are of your research of the stock.
Not saying you should throw caution to the wind, but it is my message that, if the business has not changed drastically fundamentally, wouldn't it be better to sell the stocks at a later time in future, where the price is nearer to what you want?
Problem it, most of us don't have the time to hold, or have the guts to stomach it.
To borrow another Chinese phrase "不要看到希望才坚持，要坚持才看到希望。"
It means, "don't persevere after you see hope, persevere so that you can see hope".
The local stockmarket should be more stable after the election.
I may be wrong, but I think we are nearing the end of the stockmarket correction.
Disclaimer: This article is not tailored financial advice, but mere general stock sharing / observations. Please do further due diligence. The author disclaims all liabilities from readers. The author does not have stocks listed above.
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