Lesson learnt on paper loss SGD100k++ in US stock market

This should be the most painful post I ever blog about since I first started blogging in 2016.

I hope I will never had to blog any similar post ever again. 

Sometime in July 2021, with the objective of able to FIRE earlier, I had decided to shift from SGX to US stock market (Read: Sustainable to become full time stock trader??).

I believe readers like yourself had heard / read the following:

"STI = Super Terrible Index"

"It had never reach the record high set since 2007..........." 

S&P500 chart

"Many multi-bagger stocks in US stock market"

"I just sold a 2X / 3X / 4X / 5X / 10X bagger in US stock market"

Given last year when stock market finally corrected/crash, I managed to hit a new portfolio milestone of $200k in Apr 2020 and $300k in Nov 2020 (Read: New milestone - $300,000 portfolio).

Now post market crash, I am paper loss SGD100k++

It is as though "A" student failed his school module which doesn't require any written paper exam 

(Fun Fact: Yes, I failed my 1 and only uni module which don't have any written paper exam)

 

1) I am a fish in a pond (STI) vs fish in open sea (US Market)

Underestimated the "current" which cause the price range volatility 

2) Jump straight into open sea without doing warmup

I let my guard down.

I thought I am a good swimmer (started my investment journey since 2013).

But swimming in a pond vs swimming in open sea is very difference.

The initial "swim" portion (nearer to the shore) was great.

I profit 21.6% in 12 days (Read: SOLD: Crowdstrike (My maiden USA stock)

I started selling my SGX stocks to lock in profit so that I can channel the money into US stock market.

(Read: SOLD: Frasers Centrepoint Trust)

By July 2021, I only left with Ascendas REIT and HongKongLand in my SGX portfolio in a short 2 months span (Read: Summary of my portfolio - Jul 2021)

3) Investor mode -> Gambling mode

I used to write reasons for each buy and sell BUT I totally stop doing so since Jul 2021. 

Coincidentally, my first buy without any writing reason is Tiger Brokers on 2 Jul, which is the start of my huge paper loss.

My Gambling mindset "All I was looking for is just able to earn USD200 / day so that in a single month, I will have USD4000 / ~ SGD5000+, enough to achieve FIRE." was captured in US stock market Trading update for July post.

My plan was to buy sell any shares and lock in profit as long as I earn USD200 / day using capital of USD81k. Sounds easy right as I just need the stock to raise 0.25% will do. 

Sounds similar going into casino and place bet on "Big" / "Small"

I clearly found the answer which I asked in Jul 2021 Sustainable to become full time stock trader?? post.

I believe all my readers are wise man :) 

Related post:

1) 34 financial tips for my 34th Birthday

2) Sustainable to become full time stock trader??

3) New milestone - $300,000 portfolio