The big bear market in 2008, or the stock market disaster, I am very scared for four reasons:
1. There were a lot of short positions in the portfolio at the time, especially SP. When the HSI fell sharply, the pressure on the deposit was very large and large, which would affect my judgment and operation of the stock market. So after the hardships in 2008, I drastically reduced the operation of derivatives. Now It’s just accidental, so now I don’t have to worry about it every day. I know that I may fall down the market today, or I can sleep until I open the market and wake up naturally;
2. Cash was exhausted prematurely. After the Hang Seng Index fell below 20,000 points that year, it has already felt that the market panic has been spreading and intensifying. Therefore, it feels that it is a good opportunity to buy goods. The more you buy, the more urgent it is, the less than 15,000 points, it has almost exhausted cash. I have already reached the final stage of the most panic. I have no cash to buy goods. I can only change my horse to a more valuable and undervalued stock. I missed many opportunities. Because there is no cash relationship, it is a step by step, very afraid, really as the experts at the time said that 10,000 points is not the bottom, but 6,7 thousand points is;
3. I have not experienced such a serious disaster at that time. Although I entered the market in 1997 and experienced the stock market crash in 1998, the experience of the two stocks was far different. The funds that entered the market in 1998 have been partially saved by me and my family. However, the silver code is still not large, so even if I lose the light, there is still an optimistic thinking that the money has been recovered. The funds that entered the market in 2008 are all me. The liquidity that can be used, but the silver code is many times larger than in 1998. If you lose the light in 2008, it is not the amount of money that can be re-stored in 2 or 3 years, so there is really a clear plan in 2008. The fear of the bag;
4. The financial strength at that time was much lower than the current one. Although the liquidity at that time was much higher than that of 1998, it was far worse than it is now, and at the time it had just bought a self-occupied unit, and there were a lot of book liabilities, and the burden of daily life was not light. There is a feeling of being stretched, and it explains why in the next few years, the profits I earned in the stock market are all used to repay the mortgage of two units, because I don’t want to face any stock market disasters. Now that there is no worries, you can rest assured that you will use all the funds on your hands. If you are not good enough, you will have the ability to stick to it. There is no psychological burden or pressure.
This year, I was fortunate that I earned a lot in the first half of the year. Therefore, even if I lose money in the second half of the year, I will not enter the meat. And when the Hang Seng Index fell below 29,000 points a few months ago, I always said that I would reduce my position and increase my cash. The average cash weight of the portfolio in recent months has been more than 30%, enough to cope with the sudden drop in the market. As long as there is enough cash in hand and no derivatives, I really don’t fear falling.
The current mind is very strange, not purely not afraid of falling, but also afraid that the city will not fall. I believe that many netizens here also hold a lot of cash to wait for opportunities, and each time the stock market crash is an opportunity for the transfer of wealth. Many people should be looking forward to waiting for the opportunity of ten years.