Friday, 20 May 2011

Sharing on how to be emotionless

This afternoon many of us are chatting on cbox.

Suddenly came out with a logic on being emotionless in trading.

If you seen $XXX,XXX loses before, you will not feel "kan Jiong" on $XX,XXX losses.
If you seen $XX,XXX loses before, you will not feel "kan Jiong" on $X,XXX losses.
If you seen $X,XXX loses before, you will not feel "kan Jiong" on $XXX losses. 
If you seen $XXX loses before, you will not feel "kan Jiong" on $XX losses.

That's why big shark can easily eat you and cause you to feel "kan Jiong". (They are not "kan Jiong" but you are.)

Thus, I think money/portfolio Management is more important. It is crucial to take calculated risk and put the amount that you will not feel so much emotional strains on each stock that you have. As such, you will not "kan Jiong" on buying as you scare of losing profits. Similarly, "Kan Jiong" on selling as you felt pain on the losses and wanted to cut loss.

I am at "If you seen $X,XXX loses before, you will not feel "kan Jiong" on $XXX losses." Where are you?


la papillion said...

Hi OT,

Actually the reverse happens for greed too. If you're used to getting xxxx profits, you're unlikely to settle for just xx profits. As mentioned so many times in literature, greed and fear are just the same emotions - both are the results of being discontented.

Nevertheless, impt realisation to make.

OT83 said...

Hi LP,

you are right too. both are in line with one another. Emotion is indeed very hard to control.

Createwealth8888 said...

Don't be fooled by other people's losses.

For some investors, losing $XXX,XXX is peanut or just the tip of ice-berg of their investing capital. Read the book - "The Billion Dollar Mistake."

To some investors, losing $XX,XXX could mean losing one year of their salary. How can they don't "kan jiong"? We are all human when it comes to our own money. Right?

Always ask yourself this hard question before investing or trading: Can you really afford to lose?

I don't kan jiong on falling stocks as I am mentally well prepared to write it off as I have very strong money management discipline.

OT83 said...

Hi CW,

Totally agree. Ultimately this is link to how much captial and money the individual has and how well he can manage his money and whether he can afford to lose or not.

Anonymous said...


It is also very important not to be in a hurry to achieve FF. When anyone sets an unrealistic target to retire by a certain age, they start calculating the pennies and sometimes take unnecessary risks. The biggest regular income you can depend on if you do not have sufficient savings or capital is your job or jobs. Better to develop this area than to depend on the stock market for your retirement.

Ask yourself what are your strengths ? Are you comfortable with technical since your are an engineering graduate ? Can you do technical sales or do you prefer the service sector? All the opportunities are out there. It is for you to sieve it out and find your own niche.

I started off as an engineer and did not think that I can do sales if my life depended on it when I first graduated. After getting more involved with the job, I find that I am good at solving people's technical problems. After 25 years, I am still doing it but for my own self rather than for somebody else. Even up to 10 years ago, I was still depending on my salary as my main source of income. But no longer. Director's fees, profit sharing and dividends are a much bigger part of my income now.


OT83 said...


What you said is correct too. Currently I am still struggling to see which areas which I am good at. I am still exploring areas. I am still trying to know myself more. But then its tough to really understand my own strength and interest...

Mind leaving your name when you comment? Its good to learn from people like you who are successful and has great deal of life experience.

la papillion said...

Hi OT,

Li did left behind his name.

I agree with his ideas..that work is something that one would have to work on for at least a good part of one's life. That's the way to raise the required capital to do other stuff, so there's no escaping it.

Createwealth8888 said...

Unless you have Bank of Papa or Bank of Mama behind you; you will have no choice but to work hard at your job for 1st half for money and let your money works harder for you in the 2nd half.

OT83 said...

Dear all,

Yup. Now have to work hard to get all the capital needed. After which then let money work harder.

But i still in the stage of exploring which job is i really interested in.

meanwhile I take up investment as part time job. Its interesting to uncover company's information and seeing charts.

Anonymous said...


You would need to get into the private sector. Government and GLCs are good for stable 9 to 5.
Opportunities are limited until your seniors move out before your turn is up for promotion.

I have classmates who are still in their first jobs in NEA and DSO. Yes, income is regular and stable but if you want extras, you would need to create or seek your own opportunities.

I would admit that it is tougher now compared to 10 years ago to start a business but it is still doable. Ultimately, the rewards comes with the headaches as well so unless you are prepared for it, a salaried job is still the most suitable for most people.

I am more than glad to share my experiences if you want to discuss.


OT83 said...

Hi Li,

You are right. I am in gov sector and upward opportunities are limited but private sector seems tough to get into because of my inexperience and degree. In fact I just change from a teaching job to corporate job in govt sect. I original plan is to gain some corporate experiences before moving on. Opening businesses do cross my mind but it is very tough and so far I had not met any suitable partners to strive together.

What is your experiences? possible to share?


Anonymous said...


You may have to start a new thread to discuss this if it continues further. I started off as an engineer in 1985, right at the heights of one of the worst recessions. The civil engineers of my cohort were paid $600 constructing the NE MRT line. After that, the CE intake took a dive, when previously, it was the second most popular after EE.

I got dragged into working on overseas projects one year after I started working. These were mainly facilities for the electronics industries. It was a niche market and it is still the only business I know. The longest I have been with a company is 12 years and currently, I have also hit 12 years with my present company.

Any advice I can give you would be in the form of questions to ask yourself because no one can give you a definite answer. Most decisions have to do with whether you are willing to make the sacrifices necessary to move to the next level.

The first question you have to ask yourself is whether you prefer indoor or outdoor work ? This will cut out a lot of sectors. You mentioned corporate job. Corporate jobs are mainly salaried. Individual business opportunities are more with the SMEs. You would need to network more, from your friends to alumni to organisations and even relatives. The more exposure, the better.

Ask the questions and I will attempt to let you know what I think.


OT83 said...

Hi li,

Indoor or outdoor doesn't matter much to me.but i prefer jobs that allow me to walk around, that is, not desk bound.

networking is impt and i trying to build up too but is it not easy.


Musicwhiz said...

Networking and connections/contacts are very important for starting and sustaining a business. It's up to the individual if you prefer stable income or the challenge of running your own ship. To each his own. :)

My take is as long as you have a consistent philosophy for building wealth, you should be able to sail through without problem.


(Blogger has some problem so I appear as Anonymous)

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