Something changed last week. Did you notice or felt it?
For the last several weeks, STI was quite boring.
It was doing the cha-cha-cha.
One day up, two days down. One day down, two days up.
Anyway, I've read some newbie investors (started their journeys after 2011) were getting a bit "anxious"...
It's normal. We all have been there before, haven't we?
That's why we need to go through a full bull-bear cycle to really understand ourselves and find the "most suitable" vehicle "just right" for us.
Those of us who have gone through a full bull/bear cycle will look at the above chart on Investor Psychology Cycle with a knowing smile.
Just like we have "traders" who got burnt badly after a trading account melt-down, and have now become born-again "investors"; we may see mind-flips, paradigm shifts, and new born-again converts for the investing side of the community...
Some may realise that DIY individual stock-picking is not their cup of tea. You neither have the interest nor time to put in the necessary hours to secure yourself the edge to achieve that Alpha outperformance you seek.
You may now switch to passive low cost indexing.
Not sexy. And does nothing to boost your ego to adopt a strategy that screams: "Look ma! No brains needed!"
But you now know what you want. And its not bragging rights...
At the opposite extreme, some may finally realise why even though they call themselves "investors" previously, they were tracking and monitoring their portfolios on a monthly basis.
You found out that you are more into instant gratification. Or you need immediate feedback on your actions - not 10 years later, but right here right now!
Your testosterone level is much much higher. You face up to who you are - you a carnivore; a trader.
It's not just money that you are after...
Money is just a way of keeping score for most successful traders.
Singapore Man of Leisure (welcome to my blog; just google it!)
