The stock market can be unforgiving. Those who lost their pants in the stock market can attest to this.
The 1997 Asian Financial Crisis was preceded by a big bubble in our stock market. Those knowledgeable were fearful. In fact, I stopped investing for almost 2 or 3 years before the collapse. But, there were too many who made easy money who were fearless. They invested and as their wealth grew with the bubbly market, they invested more.
When the bubble burst, many lost a huge amount of money. They suffered. They had to sell their assets to pay for their losses. Their family suffered. They downsized their homes. Their children had to come back from overseas universities to continue their study locally. Some terminated their studies and started working. They suffered from depression and hardship for many years before recovering from this harsh loss of wealth. Their personal savings and wealth decimated.
In investing, it is better to think of your downsides before looking at the potential upsides. What if the market drops 50% and decimated your stock portfolio by 50%? Will you be financially alright? If not, you have taken on too much risk and should really sell down to the point when you can sleep soundly.
In a bull market or a bull run in an individual stock, many geniuses are born. They soon disappear with the appearance of the bear. It is only at then end of a complete up-down-up cycle or a down-up-down cycle that you can confidently say you have not loss or not gain in your investing overall. Do not be lull into an overconfident territory just because it is a bull market.
Yes, your father maybe forgiving, but the stock market is definitely not. You may suffer for the rest of your living life just for stupidity in your investing in the stock market.
Stock: [TECHNAX]: TECHNA-X BERHAD
2018-02-03 18:14 | Report Abuse
The stock market can be unforgiving. Those who lost their pants in the stock market can attest to this.
The 1997 Asian Financial Crisis was preceded by a big bubble in our stock market. Those knowledgeable were fearful. In fact, I stopped investing for almost 2 or 3 years before the collapse. But, there were too many who made easy money who were fearless. They invested and as their wealth grew with the bubbly market, they invested more.
When the bubble burst, many lost a huge amount of money. They suffered. They had to sell their assets to pay for their losses. Their family suffered. They downsized their homes. Their children had to come back from overseas universities to continue their study locally. Some terminated their studies and started working. They suffered from depression and hardship for many years before recovering from this harsh loss of wealth. Their personal savings and wealth decimated.
In investing, it is better to think of your downsides before looking at the potential upsides. What if the market drops 50% and decimated your stock portfolio by 50%? Will you be financially alright? If not, you have taken on too much risk and should really sell down to the point when you can sleep soundly.
In a bull market or a bull run in an individual stock, many geniuses are born. They soon disappear with the appearance of the bear. It is only at then end of a complete up-down-up cycle or a down-up-down cycle that you can confidently say you have not loss or not gain in your investing overall. Do not be lull into an overconfident territory just because it is a bull market.
Yes, your father maybe forgiving, but the stock market is definitely not. You may suffer for the rest of your living life just for stupidity in your investing in the stock market.