Saturday, April 9, 2016

What Is Your Reaction Towards Investment Setback?

As the saying goes "Life is 10% what happens to you AND 90% how you react to it". Same thing applies to your investment journey too. 

If you can still remember your investment journey, especially during the initial phase, I am sure you have made some "silly" or bad trade that turned into a loss or two (if you are an exceptional one i.e. never made any losses at all, probably you will never come to my site anyway). I guess we all been through that and might still making such losses in the future, the key is not whether it will happens or not, but how we react to it? 

Fundamentally, there are three broad reaction that we can make after such investment "setback" :

1. Treat it as a blip and move on. Of course, if there is/are lessons to be learnt, we should learn from our mistakes. 

2. Shift approach. There are many road lead to Rome and we might be attuned to certain style of investment, find your "holly grail" and stick to it after that. One of my friend learnt that Value Investing is not for him and hence switch it to trading, he has since doing pretty well till now. 

3. Give up! Since you are no longer in the game, you will naturally shift focus to other aspect of your life. Might be a good thing as investment might not be your cup of tea in the first place. 

There is no right or wrong answer in whatever reaction you are making. The key is not to let such temporary "set back" affect your daily life, emotionally! Keep going and keep smiling ;-) 

Personally, I am more towards type 1 of people, what about you?



  1. How much one lose hor? So will be the answer.

    Ask any senior citizen who have lost heavily during AFC, their answer is 3 and focus back on saving. Inflation is scary but NOT wealth destruction.

    1. CW8888 : good point, you eat salted fish more than we eat rice! you nailed it! ;-P

    2. I have learned avoided eating salted fish, eggs or any food that preserved foods and advised my children too. From my research, I understand these food are source of trigger of nose cancer (NPC) for those descendants from Southern China like Teochew or Cantonese. :-(

    3. Hahaha, you are a knowledgeable uncle too! lol


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