Owww man! Is it me or does it feels like Chinese New Year passed so quickly this year. I haven got enough fun from all the gatherings and all the BanLuck"s". My CNY "investments" this year wasn't pretty good. Initially I won some and eventually lost all and went into further deficit. Ohwell, I guess what goes around comes around, hope all these little down in luck turn for the better and will be a blessing in disguise in future. I hope everyone had a great CNY too. Feel free to share your experience with me :)
Some lessons learnt from my poor "investments" (Banluck. etc.) are to control my discipline and emotions. I feel this is very applicable to investing because most of us are influenced by our emotions and let our emotions override our decision makings. Especially GREED, this is one classic killer to most investors/traders. Second killer will be FEAR. These two key words are one of the reasons to Buying High and Selling Low. Buying High speculating it will go higher and selling low thinking that it will drop further. For instances, just like in BanLuck, you have this "feeling" that you gonna win it big, so you increase your bet but eventually lost that round. Next, you double up to try to make it up for the lost. Isn't greed and fear in place?
Human brain also works in a very funny way. We tend to only agree to what we subconsciously have agreed. For example, you have a certain counter in mind which you are going to invest in. People tend to filter out the negatives and choose to agree on the positives things. This runs in the subconscious mind of us. In the end, your conclusion will still to be to invest in that counter given the "additional" positives backings you gathered through reading online, hearsay, or through broker report. I'm sure some of you are guilty of this, I am too. Of cause there is no right and no wrong to it as long as you have done your own due diligence. It is always best to weigh out both the risks and gains to it without any unfairness. A good investor will evaluate both the downside and upside and execute its trade at a margin of safety.
This quote is especially relevant, ("Fear doesn't exist, except in our minds" - Dale Carnegie) and ("The biggest victory is to conquer yourself"). Our human brain and emotions are the biggest barrier to overcome both in investing and also in reality. If we are able to control and stay discipline in our investments, we will turn out to be better investor than others.
Anyway, party mood is all over and it is time for me to go back to reality. Time to start finding my studying boots, get back my motivation and focus on my studies. I have been too distracted by many small things.
Cheers!
Little Boy
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