Things to Learn from this bloodbath 

When it comes to dealing with volatility, your portfolio needs a proactive plan on how to embrace volatility.

Lesson 1: You probably need to have more trading accounts

If you are using DBS vickers and Poems, you will understand the pain.
When everyone is runnning for exit, you cant even sign in to sell. 
You can always call your broker, that is if he is free to pick up. But you CANNOT wait.

Lesson 2: You probably know why i only use CDP 

As your shares are located in the custodian, you can only access them via the same custodian. This means that when you want to sell the shares, you will need to sell it via the same custodian. 

Whereas, if your shares are held in the CDP, you can sell your shares through any broker. 
Standard Chartered and FSMOne are some of the custodian accounts but they do have options for you to transfer into. 

i have accounts in most of it

Lesson 3: You probably need to reconsider using Robo Advisors
Again, i am one who like to be in control for buy and sell. It is a shame that many legacy robo-advisors still do not have a basic, structural risk management in place that is so important when managing assets. Many robos way of dealing with market volatility is by suspending trade! This is what happened with many well-known robos when Brexit occurred.

Lesson 4: You really need Poems account (no 2FA)

I am not promoting their service, but as far as i know, this is one of the retail broker that just require password. When melt down occurs and speed is of essence, any seconds loss is money loss. Imagine you need to hold your 2FA, miss one digit because your eyes r glue to the prices.

Lesson 5: There are always opportunities to invest
Even in midst of the storm, investing opportunities are aplenty for the savvy investor. "Buy when there's blood in the street," sums up the contrarian investing. Usually, stocks hit rock bottom during the financial crisis. For me, who DCA stocks every month probably will not apply.

Lesson 6: The More You Believe Your Theory, the More everything will Agree

This is one form of bias. You end Up believing what you want to believe
You bias your interpretation of evidence toward what you desire. It is always nice to discover that something you hoped were true really is true. You’ll start to insist that your magic chart to “proves” your theory is correct where none exist. 

Lesson 7: Persistence is Rarely Rewarded
Stock market is not working out in the gym. You cannot overcome market forces with persistence.

This is why everyone inside IN are emphatic about stop losses. The most common amateur mistake is to sell too quickly when a stock rises, and to hold on too long when it drops. It’s the hardest thing in the world to let go, and accept that you’ve suffered an irrevocable loss. If you do a Set Loss, follow your plan and stick to it.

K, Thks, Bye. Grandpa

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70 likes 51 comments
Zzz444

Goodness... dbs shld really upgrade their system...thought Poor connection to dbsv because overseas....

Martin_Seah

Precious insights. I see myself better.
I'm how I trade

Look

MBKE also does not require 2FA. UOBKH has made this optional too.

jaysenko

Grandpa, how do you DCA stocks ah? Auto purchase mechanism? I dont recall seeing any on vickers

jaysenko

Reply to @GrandpaLemon : Ah ok! DCA saves a lot of need for speculation. I learnt that we can never understand the market.

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Laksa

The most common amateur mistake is to sell too quickly when a stock rises, and to hold on too long when it drops. It’s the hardest thing in the world to let go, and accept that you’ve suffered an irrevocable loss. If you do a Set Loss, follow your plan and stick to it.

- this is a very true statement... cannot have emotion when trading stocl

Mkjy

True, can’t even log in to vickers yesterday morning straight after 1175 drop in US..

GrandpaLemon

Reply to @Mkjy : nice, ur broker is hardworking!

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Evilcrownofthorns

Ooh ooh I have another one.

Sometimes being too close you won't be able to see clearly. So it's ok to walk away. Be further.

Evilcrownofthorns

Nice write up.
For lesson 4, rather than using speed to sell, I would rather size my position such that I will not panic sell.
Also if got sizable war chest, even less possible one will panic sell as these is potentially money you won't be using in near future and can afford to hold.

Knowing one's risk appetite is very impt here.

kc2024

Reply to @Laksa : While in theory it makes sense, I find it hard to execute.
1. It might not go down
2. Even if it goes down, when will I buy back? If I buy back too early, will it continue to go down? If I wait, will the price just suddenly jump beyond my previous sales price.
3. I can't keep on watching the movement of the price when I am working. Even if I set alert, I might not have time to react to it.
4. Hence, I decided that while doing this might provide me a greater return, the stress that comes from uncertainty is not worth the additional (if there is) return.

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BULLytheBEAR

I've one more comment to add on, grandpa :) if u have cash, you'll be like a kid in a candy store, haha!

BULLytheBEAR

Reply to @GrandpaLemon : Haha, I prefer to see cash as a parachute... When u are running with a parachute behind you, you get dragged behind and run slower. But when u fall with a parachute, you survive! Lol

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IAmPatrick

Lesson 4
So true, it happen to me on monday lol

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