Thursday, October 22, 2009

Mobile One - Follow-up

As planned, I disposed of my M1 shares today at S$1.79. I made a loss on this trade. I am lucky that the risk is controlled and limited. It didn't balloon out of control.

As I checked the price today for Starhub. OMG, there is another bloodshed there. The price has gone down from ~S$2.00 to S$1.90 in 2 days. Again I feel very lucky that I did stick to my plan and cut my loss on Starhub when the news of Starhub lost its EPL rights to rival Singtel. The loss was bigger than I had planned for, but if I didn't cut my loss then, I would be facing an even bigger loss now. I would have been a lot more upset by now.

These two cases are good examples of cutting your losses short, and never argue with Mr. Market. If Mr. Markets says you are wrong, then you are wrong, admit it and quickly get out of your positions. Count yourself lucky if you can get out breakeven, or a small profit. A stubborn trader/investor will only be rewarded for more losses.

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