Newbie advice

[misscambodia]

At 23, I started my account at SCB as no minimum amount needed to be in the bank and you can count the amount of money you want as investment because that is solely for investment. my 1st 3 stocks were singtel. It's one of the most steady stocks as you can collect dividends and the cycle is pretty stable. Being in stocks, you have to be very vigilant, monitoring the market everyday. Therefore, as a young investor, it is better to go for long term stocks with dividends. For small stocks, there are big boys playing around with the stock market. Small fishes like us would easily get eaten.

[misscambodia]

Advice

- Treat your $7k as gone/lost when you invest. When it does not matter, then there will be less emotional baggage
when investing. That is important because the markets will test your convictions through your emotions. When you
start personalizing the unrealised gain/loss, the markets will inflict emotional pain to make you cut your position so that
you can feel better despite it is the not the right thing to do at that moment.

I was confronted with a question before.

Mr. Buffett said, “Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1″, but value investing gurus said "Treat your capital as gone/lost when you invest"? Which is correct?

My answer was both were correct. The former is the "Tao of Warren Buffett's", while the latter should be interpreted as "your capital should be spare cash". It will allow you to stay vested during the irrationality of Mr. Market, rather than to take loses lightly.

(to clarify, in case any confusion)

The actual act of pitting money on the table is priceless.

It allows us the really know where our limits in volatile times.

E.g. Do we buy oil companies / swiss companies after a big drop / on going drop, when to buy and when to sell or withdraw.

At the same time building knowledge to look for information while all these events are happening.

btw, Now would be a very bad time to buy swiss company. lol

[CityFarmer]

At 23, I started my account at SCB as no minimum amount needed to be in the bank and you can count the amount of money you want as investment because that is solely for investment. my 1st 3 stocks were singtel. It's one of the most steady stocks as you can collect dividends and the cycle is pretty stable. Being in stocks, you have to be very vigilant, monitoring the market everyday. Therefore, as a young investor, it is better to go for long term stocks with dividends. For small stocks, there are big boys playing around with the stock market. Small fishes like us would easily get eaten.

In fact, quality small stocks are more likely undervalued, because no "big boy" is "playing". The reasons are, the small stocks are too small for them, and furthermore no analyst coverage.

[weijian]

At 23, I started my account at SCB as no minimum amount needed to be in the bank and you can count the amount of money you want as investment because that is solely for investment. my 1st 3 stocks were singtel. It's one of the most steady stocks as you can collect dividends and the cycle is pretty stable. Being in stocks, you have to be very vigilant, monitoring the market everyday. Therefore, as a young investor, it is better to go for long term stocks with dividends. For small stocks, there are big boys playing around with the stock market. Small fishes like us would easily get eaten.

In fact, quality small stocks are more likely undervalued, because no "big boy" is "playing". The reasons are, the small stocks are too small for them, and furthermore no analyst coverage.

hi cityfarmer,
While I have to admit that alot of small stocks are played up as bait in the hunt for retail meat, statements by misscambodia do continue to affirm that more inefficiency (and hence returns) can be found in small stocks.

[Temperament]

At 23, I started my account at SCB as no minimum amount needed to be in the bank and you can count the amount of money you want as investment because that is solely for investment. my 1st 3 stocks were singtel. It's one of the most steady stocks as you can collect dividends and the cycle is pretty stable. Being in stocks, you have to be very vigilant, monitoring the market everyday. Therefore, as a young investor, it is better to go for long term stocks with dividends. For small stocks, there are big boys playing around with the stock market. Small fishes like us would easily get eaten.

In fact, quality small stocks are more likely undervalued, because no "big boy" is "playing". The reasons are, the small stocks are too small for them, and furthermore no analyst coverage.

hi cityfarmer,
While I have to admit that alot of small stocks are played up as bait in the hunt for retail meat, statements by misscambodia do continue to affirm that more inefficiency (and hence returns) can be found in small stocks.

That's why we have Venture Capitalists, "small caps specialists" etc.... Even i think they don't know which small cap going to be the next "Apple or Microsoft". Do you know? They just buy as many as possible the more promising ones. One or two hit jack pot is good enough for them.
So far i don't think i have made any money from small caps. Lost money yes, of course. i am no specialist lah!

[CityFarmer]

Advice

- Treat your $7k as gone/lost when you invest. When it does not matter, then there will be less emotional baggage
when investing. That is important because the markets will test your convictions through your emotions. When you
start personalizing the unrealised gain/loss, the markets will inflict emotional pain to make you cut your position so that
you can feel better despite it is the not the right thing to do at that moment.

I was confronted with a question before.

Mr. Buffett said, “Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1″, but value investing gurus said "Treat your capital as gone/lost when you invest"? Which is correct?

My answer was both were correct. The former is the "Tao of Warren Buffett's", while the latter should be interpreted as "your capital should be spare cash". It will allow you to stay vested during the irrationality of Mr. Market, rather than to take loses lightly.

(to clarify, in case any confusion)

The actual act of pitting money on the table is priceless.

It allows us the really know where our limits in volatile times.

E.g. Do we buy oil companies / swiss companies after a big drop / on going drop, when to buy and when to sell or withdraw.

At the same time building knowledge to look for information while all these events are happening.

btw, Now would be a very bad time to buy swiss company. lol

Well, the only bad time to buy a company, is an overpaid price. Chinese are buying US companies now, amid the appreciation of $ against RMB.

Currency risk is real, but it can be mitigated, for worthy M&As. One way to mitigate is LBO with local debt, for company with sufficient FCF in local currency.

[opmi]

At 23, I started my account at SCB as no minimum amount needed to be in the bank and you can count the amount of money you want as investment because that is solely for investment. my 1st 3 stocks were singtel. It's one of the most steady stocks as you can collect dividends and the cycle is pretty stable. Being in stocks, you have to be very vigilant, monitoring the market everyday. Therefore, as a young investor, it is better to go for long term stocks with dividends. For small stocks, there are big boys playing around with the stock market. Small fishes like us would easily get eaten.

In fact, quality small stocks are more likely undervalued, because no "big boy" is "playing". The reasons are, the small stocks are too small for them, and furthermore no analyst coverage.

hi cityfarmer,
While I have to admit that alot of small stocks are played up as bait in the hunt for retail meat, statements by misscambodia do continue to affirm that more inefficiency (and hence returns) can be found in small stocks.

水清冇魚

[Jacmar]

At 23, I started my account at SCB as no minimum amount needed to be in the bank and you can count the amount of money you want as investment because that is solely for investment. my 1st 3 stocks were singtel. It's one of the most steady stocks as you can collect dividends and the cycle is pretty stable. Being in stocks, you have to be very vigilant, monitoring the market everyday. Therefore, as a young investor, it is better to go for long term stocks with dividends. For small stocks, there are big boys playing around with the stock market. Small fishes like us would easily get eaten.

In fact, quality small stocks are more likely undervalued, because no "big boy" is "playing". The reasons are, the small stocks are too small for them, and furthermore no analyst coverage.

hi cityfarmer,
While I have to admit that alot of small stocks are played up as bait in the hunt for retail meat, statements by misscambodia do continue to affirm that more inefficiency (and hence returns) can be found in small stocks.

There is no right and wrong answer to this. To me the best time to buy small cap stocks is when vol goes down and you know it is not in play by the big boys; that is after you have done your FA homework.

[Temperament]

渾水摸魚

At 23, I started my account at SCB as no minimum amount needed to be in the bank and you can count the amount of money you want as investment because that is solely for investment. my 1st 3 stocks were singtel. It's one of the most steady stocks as you can collect dividends and the cycle is pretty stable. Being in stocks, you have to be very vigilant, monitoring the market everyday. Therefore, as a young investor, it is better to go for long term stocks with dividends. For small stocks, there are big boys playing around with the stock market. Small fishes like us would easily get eaten.

In fact, quality small stocks are more likely undervalued, because no "big boy" is "playing". The reasons are, the small stocks are too small for them, and furthermore no analyst coverage.

hi cityfarmer,
While I have to admit that alot of small stocks are played up as bait in the hunt for retail meat, statements by misscambodia do continue to affirm that more inefficiency (and hence returns) can be found in small stocks.

水清冇魚

渾水摸魚 if you are that good.