Dont let this happen to you when the market crashes...be prepared...
#11
17-10-2020 10:31 PM
TalkingStock said:
I thought your new investment strategy is to hold everything even in downtrend?

Hi the strategy I recommend for non.professional ordinary investors is

1. Invest regular putting aside a fixed amount every month.
2. Buy widely diversified low cost fund like Lion Infinity Global Fund.
3. Do it over 30 to 40 yr period.

The above strategy is immune to market crash. However, many people using this simple strategy will panic and second guess the strategy and stop when markets are down when their investment show losses.In other words they will self sabotage a working strategy because they are not mentally prepared.

A smarter investor will increase monthly investments when market goes down then reduces it when market recovers.

Over 30-40yrs a 50% crash in the market is a small blip. So long as you have discipline you will emerge a winner using above strategy.

However for those who use leverage special preparation and exit strategies have to be in place to avoid destruction. Many non professional traders using leverage get destroyed when wrong footed just one time that is why there are people who lose big and never recover in each crisis.
I, being poor, have only my dreams;
I will do my utmost to keep them alive.
Against tyrants and adversity, I will strive.
Together, a better future, we will realise......
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#12
大時代 ....best TVB drama ever...

18-10-2020 12:26 AM
Galilo_l said:
Did that guy survive? Btw is it a movie or drama?
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#13
17-10-2020 8:37 PM
sgbuffett said:
[Image: i0jX15x.gif]

This is scene from very old hong kong drama on stock market....

Be prepared so that the market sink your heart dont sink.

I imagine this was your reaction when gold dived immediately after you shouted "Gold will parabola to 2500 per ounce with no problems"
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#14
Laughing
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#15
18-10-2020 3:31 AM
sgbuffett said:
Hi the strategy I recommend for non.professional ordinary investors is

1. Invest regular putting aside a fixed amount every month.
2. Buy widely diversified low cost fund like Lion Infinity Global Fund.
3. Do it over 30 to 40 yr period.

The above strategy is immune to market crash. However, many people using this simple strategy will panic and second guess the strategy and stop when markets are down when their investment show losses.In other words they will self sabotage a working strategy because they are not mentally prepared.

A smarter investor will increase monthly investments when market goes down then reduces it when market recovers.

Over 30-40yrs a 50% crash in the market is a small blip. So long as you have discipline you will emerge a winner using above strategy.

However for those who use leverage special preparation and exit strategies have to be in place to avoid destruction. Many non professional traders using leverage get destroyed when wrong footed just one time that is why there are people who lose big and never recover in each crisis.

For 2.
Not sure about the dynamics of a fund performance so can I ask u:
What is d appropriate price to enter now after Mar low? Does one still continue to invest monthly in this period?
Is this fund purely for capital appreciation or have a dividend paying component in it over 30 to 40yrs horizon?
Thanks.
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#16
18-10-2020 11:18 AM
Galilo_l said:
For 2.
Not sure about the dynamics of a fund performance so can I ask u:
What is d appropriate price to enter now after Mar low? Does one still continue to invest monthly in this period?
Is this fund purely for capital appreciation or have a dividend paying component in it over 30 to 40yrs horizon?
Thanks.

Hi for (2) for most people the less 2nd guessing the better every month just invest rain or shine...many missed the March 2020 low anyway because they outsmarted themselves thinking it will go lower but guessed wrongly.

Hence its better for most people to follow the 3 steps faithfully and not guess. ..

Studies show all dividends reinvested automatically is best strategy.
I, being poor, have only my dreams;
I will do my utmost to keep them alive.
Against tyrants and adversity, I will strive.
Together, a better future, we will realise......
Quote
#17
18-10-2020 11:41 AM
sgbuffett said:
Hi for (2) for most people the less 2nd guessing the better every month just invest rain or shine...many missed the March 2020 low anyway because they outsmarted themselves thinking it will go lower but guessed wrongly.

Hence its better for most people to follow the 3 steps faithfully and not guess. ..

Studies show all dividends reinvested automatically is best strategy.

I do believe in compounding effect of reinvesting dividends... so d fund do pay a dividend? Yearly?
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#18
Laughing
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#19
17-10-2020 8:37 PM
sgbuffett said:
[Image: i0jX15x.gif]

This is scene from very old hong kong drama on stock market....

Be prepared so that the market sink your heart dont sink.

It is already happening on some counters, you still don't know meh.
笨拙的人讲道理,聪明的人说故事。
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#20
18-10-2020 11:51 AM
Galilo_l said:
I do believe in compounding effect of reinvesting dividends... so d fund do pay a dividend? Yearly?

For those i own automatically reinvest.
I, being poor, have only my dreams;
I will do my utmost to keep them alive.
Against tyrants and adversity, I will strive.
Together, a better future, we will realise......
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