Lessons learned as of today
- AIG’s surprised disappointing 3Q16 earnings: there might be 90% chance that AIG will beat earnings estimate, but they missed it due to unexpected reserve in legacy portfolio. Should I sell partial of my positions, especially in the 2017 Options to relieve the risk?
- When FBI stated they reopen Clinton’s email investigation, I need to think about buying in some equities, at least in 401k, step by step, instead of waiting for the fat pitch? Since after FBI announced on 11/06 there is no criminal charge again, market rebounded sharply, and I missed the rebound.
- When market is down, my portfolio is down, I was in a very depressed mood, and did not even want to look at my portfolio and other positions, I therefore missed the best chance to get. Remember, do not be depressed, especially when market is down, since now it is time for me to be very passionate to look for opportunities. Since this depressed time will not be long, once it is passed, I am still not ready to invest in other much better opportunities.
- I sold VIX too early – I am not confident on my estimation, once outside voice gives me pressure, I withdraw my thought, and sold it too early, and missed two days of rally.
- I will change my investment perception: once market (my portfolio) is down, I will be very happy since I will have more chance to get in; on the other hand, once market (my portfolio) is up, I will not be happy since I have no chance to get in – UNLESS, I have decided to sell some positions and make profits.
- Remember to always have cash in my portfolio, therefore, make profit (sell position to maintain my principle) is the key.
