Up until mid December 2008 i had never owned a single share. I had always worked hard and always followed the mantra my parents distilled into me that no money is ever easy and to scrimp and save if you want to buy anything.
Then, after following the collapse of world stock markets i like i suspect many others decided to 'put a bit' of money into the market as sooner or later things would pick up.
I moved my 100,000 GBP life savings (my 'house deposit') across to Australia from the UK (at a 2.37 exchange rate) ready for 'my investment'
I first put a few toes in the water and before too long had invested nearly half my cash and my eyes lit up with the days of $1k, $2k and $3k gains..... This was easy i thought....
Then came a February 2009 rout when everything i owned got absolutely massacred and within the blink of an eye i was $27,000 down and feeling less than thrilled with the way things were going. At this point - out of bloody mindedness I put My other half of money into the mix. 'All in' i thought as it can't go any lower.....
By pure luck i happened to invest almost all my cash at the absolute bottom of the market and over the next 6 months everything seemed to work out. First the $27k loss got wiped , then i had gains $10k, $20k , on and on it went. Eventually ending 2009 with an overall gross gain (including dividends)in the region of $150k. Not bad for a part time interest?
However, i have become much more aware and fearful of the market through 2010. Its like a raging torrent that can take you at will. I have lost around $35k of my portfolio value in the last 2-3 weeks despite being 'aware' of events. I wanted to sell but didnt, simply because a lot of my long term positions i'd held for around 10-11 months and was desperately keen to get the capital gains discount.
I have now exited 60% of my portfolio, reducing my exposure to equities to <$150k, and i have taken my exited money and moved it back to England at the exhange rate of 0.6 , more than paying back my original investment due to the exchange rate movement alone.
So why am i writing this? Simple. I wanted to remind myself that despite looking glum and feeling the whole whole world is falling in on me of this week, I am actually very lucky and shares wouldn't get much of a mention as the major 'events' in my life over that time....
In the last 16 1/2 months, my best friend in the UK lost his job, ran down his savings, and generally ran into severe hardship... In the last 16 1/2 months my housemate suffered from severe depression and tried to kill herself a total of 6 times... In the last 16 1/2 months i suffered from a dehabilitating condition that meant i was bed ridden for nearly 3 months. In the last 16 1/2 months my mum was diagnosed with a life threatening illness. In the last 16 1/2 months my last living grandparent died of a heart attack.....
Family, Health and friends well being are far more important in life than 'the stock market' and for anyone feeling down about massive paper losses at the moment i urge you to look around and see whats truly important.
By the way... my mum recovered, my health came back, my housemate got the treatment she needed, and my friend picked himself up off the floor ..... thats why i'm happy. Resucitating my Grandad from the grave is a bit much to ask for! but i'd gladly give all my 'stock market' gains to have him back.
Make sure you look around to appreciate the 'important things in your life' and i'm sure you'll be a happier trader as a result whether you win or lose. :)
