Mie Investment Experience

Some of investment experiences I have gained over the years:

1. You can never time the market perfectly and be continuously right in timing.  If you do, it is pure luck.  Don’t wasting time to try time it.
2. Liquidity will be a concern when an asset is at its highest price or its lowest price.
3. If you buy stocks, don’t hold too many shares even though you like it.  Because, chances are the stock that you hold is not likely to move, at least in the short term.  If it moves, it might have liquidity issues.
4. Shares is for people who like to deal with micro analysis; mutual fund is for people who like to deal with macro analysis; options is a hedging tools not for gambling; currency is a spice that you enhance your portfolio return.
5. Always stay diversified because it is better to be approximately right than absolutely wrong!
6. Always stay invested (but you can reduce your exposure).  Because all assets are mark to market so when the market turn, it is always too late to jump in to chase for the best returns .  And you are likely to continue to miss the rally when there were to be any correction as you will always wonder “is this real”.
7. Dollar cost averaging is the best way to overcome fear!  It is also a perfect way to “time” the market.
8. Don’t ignore the noise (correction) in the market – capitalise on it instead!
9. Fee is only one of the most important factors that affect performance but definitely not the ultimate.
10. Investment has many shades of grey – don’t ever see it as only “black or white”.
11. Be open minded to bond – the right bond can give you the surprise in bad times.
12. Let go, if you can manage yourself.  Engage someone professional to help you grow your asset.  You can never grow your asset when you hugged all to yourself!
13. When the market is high, don’t get too ‘high’; when the market is down, don’t get too ‘down’.
14. You are confident but that does not mean the market will be as “confident” as you – your level of confidence has nothing to do with the market performance.
15. News are good but don’t be fooled by the “news”.
16. Dare to be different on a reasonable ground because you might be right.  As a rule of thumb, majority is always on the wrong side about the market.
17. In the short term, everything may go wrong; however, in the longer term, you will see the “good” rise from the “bad”.  So be patience if you are holding the good stuffs.
18. What goes up may come down but the time for it to come down may take longer than you are willingly to patiently to wait for!
19. To make good return, be there early.  You can never to “just in time” be there.
20. What you like do not always go hand in hand with what is right for investment (in terms of performance).
21. Good yield does not mean is good return.  A good return is defined in total return (yield + capital appreciation) not in yield only.
22. Making money is never a challenge but how not to lose money is.
23. In investment, it is not how fast and how much you can generate.  It is about the ability to deliver the return consistently and preserving it well when the “tsunami” come.
24. When the market bounced from the low, if you missed the 1st wave of the rebound, your return is likely to be pathetic.
25. When you are very confident about the market – it’s time to reduce your exposure; when you are not sure of the market – it’s time to increase your exposure.
26. Don’t let the headlines blow your head.  ETF outperforms mutual funds?  Get your facts right first before you are brain washed by the “myths”.  The reality is not all ETFs outperforms all mutual funds.
27. Remember the news you read are “history”.
28. History repeats itself but in different form.
29. At the market peak, you might not sell due to liquidity – but if there is abundance of liquidity, its a sign of worry.  At the market bottom, you might not buy due to liquidity – but if there is abundance of liquidity, watch out!