Fear

Fear is something created by oneself and is the fruit of one's imagination. Imagination should be left for creating the future instead. This was taken from one of the K dramas I watched recently...so who says that K drama is all fluff and no use. There are some really good quotes in there I tell you!

Fear can really freeze you in your tracks at times. It can also force you to want to break out and if you do, you unleash your hidden potential. I remembered frozen by fear before at work but funnily never when it comes to investing. Maybe I'm in my natural element?

Even when prices plunge far below my buying price, still I have no fear. Doubts occasionally clouds my mind but the strength of my conviction anchors me such that I do not sell in a flurry. The only decision I have to make is whether to buy another lot to average down.

When prices go up and I miss the boat, I wonder whether I should catch it or just watch the boat leave. Fear of missing out but then I tell myself that there are so many other stocks I can buy, so I brush fear aside and concentrate on what's coming next.

Indeed I should concentrate on imagining my bright future instead of being bogged down by my self created fears.

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Comments

  1. Joyce,

    I wish I had your conviction. Often when the price goes against me, first thing I do is to question what did I miss!?

    Trend followers are not very cerebral... LOL!


    Ah! Imagination is right up my alley ;)

    If haven't achieved anything yet, people will look at us with pity eyes and say we are dreamers.

    If achieved some results, people now say we were visionary?

    LOL!

    ReplyDelete
    Replies
    1. Let's just say that I've been pressured by ACCICB a couple of times such that nowadays I just ignore him! Sometimes I've to discourage him from buying the same counters as me!

      Because I can't read charts, I don't question what I miss. Instead I always feel that it takes times for markets to realize the gems I've picked and for the price to reflect that.

      As long as you are happy with your achievements, you are a visionary in your own eyes! After all, vision cannot be imparted, it's either in you or not.

      Delete
  2. Fear is a state of mind
    Learn to control it
    Plan ahead so that u have nothing to fear

    ReplyDelete
    Replies
    1. Hi Jimmy,

      Thanks for sharing your thoughts. I agree with you. I've been grappling with fear but on and off it still gets the better of me at times.

      Delete
  3. Hi Joyce,

    Fear is a double edge sword. During the last crisis, I shut myself off from the market and I did nothing to my stocks - a good thing since fundamental stocks eventually recovered and is doing even better, but at the same time, I could have bought more during this period.

    ReplyDelete
    Replies
    1. Hi Derek,

      It's always scary to buy during the bear or crisis or when prices plunge much more than your expectation. I'm still trying to steel my heart and take the plunge at times!

      Delete
  4. When you have studied the FA well enough then you will be calmer than most people ... and over time it becomes a natural element of you.

    Because of your strong conviction then you can make a more rational decision to add more to your existing stock holding when its stock price weakens. So, your basis of adding more of the same stock is not really solely due to dollar cost averaging but your conviction of it is still valid; do correct me if l get this wrong?

    I will not chase after a stock which has risen much in its price as you put it correctly that there are many other good stocks to buy into. My focus is only Singapore stocks but as you are also into foreign listed stocks so you have an even greater choices of other good stocks to invest into. Have no fear!

    ReplyDelete
    Replies
    1. Thanks Money Honey for sharing your thoughts. Yup, my conviction remains the same... The problem was that I didn't want to put myself through too much FX risk..but a certain foreign bank is screwing up my admin...such that I've yet to be able to put money into my brokerage account...

      Yeah, no point chasing because sometimes the joy of seeing it go up maybe short lived aka unable to rake in the profits before it goes down!

      Delete

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