You should lose Money on your investments first, before learning how to make money. True or false?

You should lose Money on your investments first, before learning how to make money. True or false?

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You might probably have heard of the term “tuition fee” in the context of trading and investing. There’s a saying that good investors are often good because of the previous setbacks and failures. In the Singaporean context, a positive way to handle the situation of a bad investment, is to see it as a form of “tuition fee” – an often pricey but valuable lesson to be learnt.

The following is an excerpt of an article based on this topic, which written by our user, Li Guang Sheng.

“Yesterday I had a discussion with a very close friend who was very successful in business at a very young age but failed and climb back up again. We had this conclusion that one must lose money or fail to learn and climb back stronger and better. Most of us including myself are unwilling to lose money on your investments/business. A lot of us once lose money or failed in business will give up. My advise is do not despair, you learn from mistake and climb back stronger just like @financialfreedom. He is improving and if he can do it so can you. A lot of us work hard in our day job and save up our income but end up with stupid investment decisions. Is through such “stupid” investments that we learn from mistake, and become wiser and careful with our money. Even gambling itself got a lot to learn, if one never gamble and lose during his early days in life, it may be even more painful when one start to gamble when he become rich through business and lose his fortune after indulging in gambling.

There are different people who do not earn much in IN and I can understand how you all feel. Some do simple job such as admin work and it takes a lot of effort for her to one to save a sum of money for investment. The only problem is these people have no experience in investment and most of them are con by greed such as Gold Guarantee or sunshine empire. Is not their fault that they invest in ponzi, as these people devise scam to cheat or induce people to invest in scam with ridiculous return such as 20% a month. My conclusion in investment is there is no fast method to make fast money unless you take huge risk. In Chinese the saying is there is no 一步登天 method, rather slow and steady to make is the way to make for most of us.

After analyzing so long, I would advise investment when there is crisis and most important invest when everyone is fearful.. As long as you have faith in the company that it will not go bust, then I believe is good time to invest. Last time I believed in Keppel Corp and SembCorp and bought it but it slide lower. Eventually I still make to hold and and collect dividend and waited until neck long long for me to sell. Likewise now everyone is bullish, I liquidate and take profit slowly as fundamentally most of the stocks are way to high as Singapore economy is not doing well and companies mostly are reporting poor earnings or losses.”

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