General discussion, page-5604

I will add that the last 1 year due to Covid was an excellent training ground how to identify companies with ST vs LT prospects, mgmt who were short sighted and flogged their companies with “covid” in their titles to make the SP run higher in the ST only to see the SP dissipate even quicker when the market realised they were tricked. I won some and lost some. Lessons come quick and mostly learned through failures. But I was willing to lose and sell out of positions where the needle didn’t move despite sincere efforts of mgmt. If I held onto them I would still be stuck the hell of break even but I have 3X’ed a substantial sum by taking the losses and moving on, and applying lessons learnt.

It is about watching the market, the company and it’s mgmt, and oneself does one understand the psychological aspect of investing and what styles suits you. Whether you prefer slow vs fast growth, deeply discounted shares with potential for future turnaround or prefer a defensive stock.

Most of all, last year I loaded up on IHL options (my first options ever) thanks to substantial guidance on this forum and I sold every other stock, every piece of gold, broke every fixed deposit to stump up a huge sum for the oppies. So much so that IHL was nearly 100% of everything I owned. (As some would say I was Yolo on IHL).

So I am here saying invest in what you understand in and, what you believe in, invest in mgmt you can trust and taking the company in the right direction.

I will state another heresy. Some one here said invest only what you can lose. If I did that I wouldn’t be where I am today. My principle is to invest as much as I can in the company I truly believe in. If I have invested in the right company which strikes it big, I want to strike it big. If it goes down, I will go down but I will learn something from it.

A stock is a part ownership in a business. If it is your local cafe and you invested $100 (only what I am willing to lose) in a cafe that is valued $100k, and the business is now valued $1Mn (10X), does your now $1000 mean a lot to you? For me it doesn’t move my needle. The level of work required to invest $100 is not worth it. So I go big!

No advice. All IMO. Please do what you think is right for you.