When I first started investing during my university days, I was limited by the options available to me. At the time, there weren’t many avenues to invest in U.S. markets, so I focused solely on SGX-listed shares. My journey began just a year before the lot size for SGX shares was reduced from 1,000 to 100 shares, which made investing more accessible for someone like me with limited capital. However, looking back, I realize I made several novice mistakes that cost me significant opportunities. Here’s a reflection on my journey and the lessons I’ve learned to become a better investor.
Mistake 1: Blind Investing Based on Affordability
In the beginning, I didn’t have much capital, so I invested blindly in whatever I could afford rather than focusing on quality companies. I didn’t do proper research or understand the fundamentals of the businesses I was investing in. As a result, I often sold my holdings after just a small gain, missing out on potential long-term growth.
Lesson Learned:
Investing
should never be about affordability alone. It’s crucial to focus on the
quality of the company, its fundamentals, and its long-term potential.
Patience is key—holding onto a good investment can yield far greater
returns than chasing quick gains.
Mistake 2: Chasing Overseas Markets Without a Strategy
Over time, I became greedy and turned my attention to overseas markets, particularly U.S. stocks. I learned how to use platforms like Interactive Brokers (IBKR) and started investing in U.S. equities. However, this coincided with a period of market volatility, especially during the Trump administration’s tariff wars. I panicked frequently and sold my holdings at the slightest sign of trouble, resulting in significant losses.
Lesson Learned:
Market
fluctuations are inevitable, especially in the short term. Reacting
emotionally to volatility—such as panic selling—can lead to poor
decisions. Instead, I’ve learned to focus on the long-term value of the
companies I invest in and to stay disciplined during periods of
uncertainty.
Mistake 3: Failing to Hold Quality Investments
One of my biggest regrets is not holding onto quality investments like QQQ (an ETF tracking the Nasdaq-100). If I had held onto such investments, I could have seen substantial growth over the years, potentially reaching half a million dollars by now. Instead, I let fear and impatience dictate my actions.
Lesson Learned:
Holding quality
investments through market ups and downs is one of the most effective
ways to build wealth. While it’s easy to say “buy the dip,” the real
challenge is holding through the dip. Trusting in the long-term
potential of a company or index can lead to significant rewards.
Starting Fresh: My New Approach to Investing
I’ve decided to start fresh in 2023 with a more disciplined and value-driven approach. Here are the key principles I now follow:
Focus on Value, Not Noise:
I will invest in companies or ETFs that I genuinely believe have long-term value, regardless of short-term market fluctuations or political events.Stay Disciplined During Volatility:
Instead of panicking during market downturns, I will remind myself that price fluctuations are temporary and that quality investments tend to recover over time.Think Long-Term:
I will prioritize long-term growth over short-term gains, holding onto investments that align with my financial goals and risk tolerance.Continuous Learning:
I will continue to educate myself about investing, market trends, and economic factors to make more informed decisions.
Conclusion
Investing is a journey filled with ups and downs, and mistakes are inevitable, especially in the beginning. However, each mistake is an opportunity to learn and grow. By reflecting on my past errors—blind investing, emotional decision-making, and failing to hold quality investments—I’ve developed a more disciplined and value-driven approach. Moving forward, I aim to stay patient, focused, and committed to my long-term financial goals. After all, the best time to start investing wisely is now.
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