Sometimes the power of now can really kill you?? can it???
As discussed earlier on(Singtel)….let see how patience fare.
You have saved up $2,900 to purchase Singtel stock.. How should I purchase?
(Dividend calculation are not included to simplify calculation)
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“LIMPEI want to do something now” Scenario
- Notice Singtel price soaring and thinking about how much you would have made if you bought it during 2007
- Decided to purchase it at 2008 at the price of $2.9
- Went through the crazy emotional cycle when price drop to $1.4 at 2009 all the way to 2013 (5 years of emotional trauma)
- To only gain $0.10 capital gain
- Math:
- Purchase 1000 units ($2,900) worth of stock at 2008
- Stock value at 2009 ($1,400) – Half of your initial purchase value when you’ve just bought it
- WOULD YOU SELL IT IMMEDIATELY?? or could you hold on or would ...
- Notice Singtel price soaring and thinking about how much you would have made if you bought it during 2007