Today (9 Dec), I sold another 3 of my legacy stocks (Sembcorp Marine, Marco Polo Marine, Yongnam) at a loss of $40,141. That brought the total loss from selling my legacy stocks to $135,715.
The below is a summary of all the failed investments that I have made in the early year of my investing journey and if you also own any one of them, I hope this article encourages you in some ways.
Old Chang Kee
Total Investment: $13,440 Sold for $11,073, Loss of $2,366 (17.60%)
Total Investment: $13,890, Sold for $7,290, Loss of $6,600 (47.52%)
Total Investment: $25,633, Sold for $7,500, Loss of $18,133 (70.74%)
Total Investment: $10,880, Sold for $4,455, Loss of $6,425 (59.05%)
Singapore Press Holding (SPH)
Total Investment: $13,204, Sold at $7,080, Loss of $6,124 (46.38%)
Total Investment: $86,808, Sold for $52,852, Loss of $33,956 (39.12%)
Total Investment: $16,350, Sold for $8,089, Loss of $8,261 (50.53%)
Total Investment: $35,594 Sold for $4,137.87, Loss of $31,456.13 (88.37%)
Marco Polo Marine
Total Investment: $5,686, Sold for $1,232, Loss of $4,454 (78.33%)
Total Investment: $4,430, Sold for $198.15, Loss of $4,231.85 (95.53%)
I bought these stocks when my investing journey started in 2012, mostly through the recommendations of friends as well as strangers who shared on financial blogs and forums. I did not do much research on them and I bought them based on hype, fear of missing out (FOMO) and the fear of inflation eating up my savings in the bank.
When they started declining due to various reasons, I was still hopeful that they would one day recover, so I averaged down instead of cutting my loss and exiting my positions. When they kept dropping until a point of no return, I gave up averaging down and just let them be, and the losses just keep getting higher. I was probably in denial or lacked the courage to do anything about it. Major events like the oil price crash and the pandemic just made everything worse and the remaining value of these stocks just kept getting lesser with time.
So Why Cut $135k Of Losses Now?
The only reason that I am finally cutting most of my losses now is that this year has been a very profitable year in options trading and I have made more than this amount back through options trading. By cutting the losses, I am also freeing up capital to add to my trading account, which can help generate more profits for me, instead of them idling in these legacy stocks and losing value with time. It was a liberating feeling as I finally got rid of the baggage that I have been holding on to for years.
How Options Trading Help Me Deal With My 6-Figure Investment Loss?
I Lost $80,000 In The Stock Market In A Single Day
My Total Portfolio Returns Increased By USD47,210 In 2 Weeks
Total Profits From Trading Tesla In Last 3 Months: USD$48,740
How I Made USD$9,827 In 3 Trading Days Using The Easiest Option Strategy