This is going to be a good log!
This month, I am reporting a loss of -$13,751(-6.8%)! but I am super excited!
Why would I be excited when I'm not profiting this month?
Because it is a great teaching opportunity!
Many of you would probably say now...
"See? told you he is a scammer, he is losing money now!"
"He is going to go bankrupt soon!"
This is the most important part of being a "Value investor".
It is so easy to be making money and bringing in a huge profit when the market is doing well.
It is a test of the investor's discipline when the market is not performing!
When the stock market isn't doing well, what should you do?
First thing will happen is... fear will kick in...
You would start to worry about what if the market continue to perform badly?
Should I sell and pick another stock? The stock portfolio I am currently holding isn't doing well, should I switch to a better stock choice?
If you do switch to a different stock at this point, you have been tricked by Mr. Market. And don't ask me why you can't make money in the market.
When the stocks you own isn't growing, and when the other stocks are gaining more than 50% for this month? what do you do?
First thing I would suggest you to do is... think about why you purchase the stocks in your portfolio in the first place, and why do you even consider selling them now?
For me, I usually put down the reason for my purchase in my journal, and when do I expect a profit.
In most cases, it would be because the company is a great company, in a blooming industry, and it is trading at a discounted price.
When a stock fulfill all these condition, there is nothing to worry about...
I do not worry about if it will continue to decrease in price, although it might continue to decrease.
I don't worry about it, because the company is making a huge profit every year, every quarter, and why should I care if the stock price is temporarily low?
Is the money they're making each year a fake? or the money the company is making worth less than other money? what's different between the money this company make and the other companies?
If your answer is no different, why then you are worried about it's stock price continue to be suppressed?
I worry very little when the stock price of an amazing company when it is low. Instead, I see it as a great opportunity to buy more...
Think of the company as a piece of gold or diamond... if one day, Mr. Market decided to sell it to you at a 40% discount, would you say that you're not interested, or you would like to own as many as possible?
This is what a true value investor is...
Instead of looking at the equity price, and worry about it's future. We buy value, and understand how much a company worth.
One simple rule I follow for years now is...
In a bear market, we own more shares. in a bull market, we turn it back to cash.
Like my mentor used to say: this is so simple, but so simple that no one can follow...