Ep510: Siravich Wongpanich – Don’t Be Overconfident When Investing in Crypto

Andrew Stotz 00:02
Hello fellow risk takers and welcome to my worst investment ever stories of loss to keep you winning. In our community. We know that to win in investing, you must take risks but to win big, you've got to reduce it. Ladies and gentlemen, I'm on a mission to help 1 million people reduce risk in their lives. To reduce risk in your life, go to my worst investment ever.com today and take the risk reduction assessment I've created from the lessons I've learned from more than 470 guests, it's time to start building wealth the easy way by reducing risk. Fellow risk takers, this is your worst podcast host Andrew Stotz, from a Stotz Academy, and I'm here with featured guest, Dr. Sarah with one Punnett. Doctor zero it, are you ready to join our mission?

Siravich Wongpanich 00:50
Yeah, of course, I'm ready.

Andrew Stotz 00:54
I can feel that and I'm excited to get you here. And let me introduce you to the audience. Dr. Su ID is a founder of the money clinic, a Facebook page about trend following trading from Thailand, he is a doctor and a trader in the stock market cryptocurrencies and also futures, well take a minute and just try to fill in a bit about the value that you bring to the world.

Siravich Wongpanich 01:25
Okay, so for me, the value that I bring is like to give the knowledge for the test not only does the at once, or the people who stay in the stock market for a long time, but the beginners also, I want them to like, start at the right part and don't lose too much money before they get the adequate knowledge to stay survive. Because many of the beginners or the one who just entered the market want to get rich quick. Sometimes during that time, if you don't go with the right pipe during the time when they have the chance to do it, as the knowledge is adequate. They will not have enough money. So I want him to like start gradually. And soI in the long run. Yeah,

Andrew Stotz 02:24
yeah, it's it's, you know, I, we were talking before the, the, we turn on the recorder. And I was saying that I came to Thailand in 1992. And I started my first job as an analyst at a broker that was broker number one called Tawana, finance, dynamic Eastern finance company. And it was at the intersection of what we call in Thailand all summer tall. And, but what I remember was that people rushed into the broker room every the trading room every day. And it was a madhouse of people that were just trading like crazy. I mean, they just could his grandma and grandpa and so many different people that would be in the trading room at that time. And they just were in a rush, you know, at that time, and I often saw when I went in there, as an analyst, they would ask me a lot of questions and a lot of what I tried to tell him to slow down, manage risk, be careful. And yeah, people just get excited when they see the stock market, and they read about things. And they and then as you say, they run out of money by the time they get the knowledge. And one of the questions, you know, being a doctor, what, what's the difference there? I mean, is a doctor, you know, I know that there are doctors that I've met that invest in I've seen doctors that like dividends and doctors that like analyzing dodges, like trading, but what what do you think is kind of the angle from yourself being a doctor and how that gives you some perspective?

Siravich Wongpanich 03:56
Well, for me, I think if I am a doctor, so the thing is, I think is the the the way you to analyze things and get the critical thinking, that is a key the key thing for doctors to do in our day to day tasks, but also in when when we go into the trading or investing in the stock market at any market, we have to change a lot of the perspective from our our job because when we insure the market, right, we start from zero equally. But many of the doctors are the one in the higher rank. They think they were smart, Vegas, weary, lightly clever, and they know everything. By the time they come to the market. It gets worse.

Andrew Stotz 04:59
Yeah, in fact, To overconfidence, it happens for doctors, it happens for entrepreneurs who have been very successful with their businesses. And then they come to the stock market with this confidence. And the market just takes their money away. So, ladies and gentlemen, be careful. Well, now it's time to share your worst investment ever. And since no one goes into their worst investment thinking it will be tell us a bit about the circumstances leading up to it, then tell us your story.

Siravich Wongpanich 05:24
Okay, well, I had maybe bad investment during my seven years of on and off investing and trading, because due to my profession, but the worst one for me is doing the crypto market currencies term in the futures, futures trading. The cryptocurrency market bring me really up and down, actually, I got 10 times profit, but also lost around 1/5 of my capital, the SSL, that I have to invest in, that time, I'm so exciting around the booming of the crypto market. And that's why I got forget about risk management. And I do, what I done is all trading and also revenge trading, which proved me costly to my account, due to the leverage, as you know, if you trade in by Nance, and see the leverage bar leveraged and present side bar, you can slide I took it too much as we can cost me my account, nickel. And after that, after you always trade what you gonna see is not the sharp pattern, the price pattern, the risk management, you see only the p&l the profit and loss only. That caused me a severe loss of money. Yeah, I realized that after that, I lost around 100,000 baht. Yeah, that's a lot. And by the time that that club blew up, is stop a study license, or what have I done? And as that, stop doing what everything and start analyzing myself, and then I just get back and just turn off the application or something and go somewhere else? So relaxing, something like that? Yeah, that's what my worst investment Sorry.

Andrew Stotz 07:32
It's interesting that you said what have I done? I think a lot of times when we make a mistake in investing, and we lose money, we feel shame. We feel kind of embarrassed, particularly if we're leaders, and if we're known, and we're public, but also if it's family money, or you know, all kinds of reasons. And so I think for the listeners out there, you know, it's just natural that when you lose in the market, and when you lose an investing, it can be shameful, and it's okay to just talk about it, and then learn from it. That's the key. So let's go through what lessons did you learn from this experience?

Siravich Wongpanich 08:07
Well, I have learned a lot from this experience, because it's cost me a lot of money and cost me also my confidence. Firstly, do not all trade, externally minded might have time that cow not quite big. I have about getting rich, quick, quickly. With my experience and knowledge the suspect was it takes so the market smacked me in the face and take us take not solely 1/5 of my account, but also my confidence. Also do not take revenge trading, like the Medicare strategy may suit into Gambit, but not anywhere at all in trading. Where I have learned that when I am a horse free trade a little bigger. But when I'm in a course free, trade a little smaller, not my first time. And lastly, there will be a lot more trading transaction in your life. Not just go big or go home, because most traders just go home and lose. How to Stay for the long run is better than short term. Yeah, that's what the lesson that I learned.

Andrew Stotz 09:15
Yeah, I think, um, you know, if I summarize, the big thing that I take away is something you just said, it cost me confidence. Yeah, we always think about the money we lose. Of course, that's, you know, that's terrible. But it's the confidence in ourself. It's the confidence to go back in there and trade again, there's many people who have lost money in the stock market and said, I'm never going back. And that's not a solution either, because we need to compound our savings and our investment over time if we're going to have enough money, for instance, to retire. So I really think that that cost of confidence is such a major thing and I think the second thing is that you know, in the big inning, you talked about the overconfidence of doctors. And I said the overconfidence of entrepreneurs, but the concept is, if you go in with overconfidence is going to be taken away. And when it's taken away, use that as a moment to be humble. And then try to rebuild and strengthen yourself as you go back in the market. You know, the market is such a complex system that, you know, it's not like simple things. And you know, you really have to take it carefully. Anything you would add to that.

Siravich Wongpanich 10:34
I think it's the thing more over and that I think the thing that I learned, right is like about, there will be the sweet spot for you. Like in the how, how much of just the size that you take. And the thing that will suit you. If you had adequate experience, you will be the winner at that time. But if not, not, you're not got what it takes in life a loser, but keep going.

Andrew Stotz 11:10
So maybe try to find your sweet spot and try to operate within that sweet spot. Yeah, that's, I mean, that's good advice. So based upon what you learned from this story, and what you continue to learn what what action, would you recommend our listeners take to avoid suffering the same fate? Let's think of that young person, they've opened up their crypto account. They're really excited, everybody's getting rich, we're all gonna be rich, what one piece of advice would you give them?

Siravich Wongpanich 11:37
One piece of advice that I think is really important is I would recommend to listener is to plan and follow it, which is harder than you think it is really harder because we have an emotion something and like you have the confidence that you can do wouldn't do. Follow your plan. But the thing is, but if you fail to plan you are planning to fail. Yeah. So that you will not be on the same face as me. As before my dad

Andrew Stotz 12:11
said you're playing well. Alright, now let me ask you, what's a resource that you'd recommend for our listener?

Siravich Wongpanich 12:18
Well, the resources for the listener, I got my Facebook page, my money cleaning, and next year, I will open my Facebook group around the sharing of the stock market, maybe the first week in Thai stock market first and after I would go to like that in the US and something like that, like just a chart pattern, or sometimes like the business model or something like that. And the other thing is, I will have the online course, but that by the time is open and ready for the next in the next engineer to futures I got I will have the online course. So if you let come from the worst, my worst investment ever will be this cow. I'm seeing you later on.

Andrew Stotz 13:06
Fantastic. Well, we'll put those links in the show notes. So ladies and gentlemen, check out the Facebook group, check out the online course I know it's I have a lot of online courses. I know it's not easy to make an online course that's really good. And you know, it takes time, so I know how that goes. Alright, so last question. What is your number one goal for the next 12 months?

Siravich Wongpanich 13:28
Well, my number one goal is to build community on my Facebook page within the next year content may include English content as well, because actually my content is in Thai. But more I would develop a trading strategy that suit me more. Yeah, for me, because I would have more time on the monitors to watch the market. Since my job. My new job has been changed from restaurant training to Doctor cleaning. I will still have like two portfolios to separate each other like one for trend following and other for like short term day trading or swing trading. Yeah, that is my goal for my next 12 months.

Andrew Stotz 14:14
Fantastic. Well, listeners, there you have it another story of loss to keep you winning. If you haven't taken the risk reduction assessment, I challenge you to go to my worst investment ever.com right now and start building wealth, the easy way by reducing risk. As we conclude, Dr. Zero we I want to thank you again for coming on and joining our mission. On behalf of a Stotz Academy I hereby award you alumni status for turning your worst investment ever into your best teaching moment. Do you have any parting words for the audience?

Siravich Wongpanich 14:50
Yeah, of course. The party were for me is the road to it weapons or threading is very tough. It feel is strong. Go favorite up and downs. And also there are no guarantee that you will succeed. But at the end of the road will be so sweet if you can make it. Don't forget to do your PDCA and the plan, do check at action, but plan ahead of entry plan, exit plan, poison sighs or something like that. Do the accent that you have your plan, shed ship the result and process which you did. And the last thing X develop and improve your sales made on the previous experience and mistakes. Yeah, that's all

Andrew Stotz 15:38
great advice. And ladies and gentlemen, the PDCA is called the short cycle, later modified by Dr. Deming. It's called the Deming Cycle he called it PDSA, but PDCA is similar. So that's very fascinating. I love it. Well, that's a wrap on another great story to help us create, grow and protect our wealth. Remember, ladies and gentlemen, this podcast is about one guest one story one mission to help 1 million people reduce risk in their lives fellow risk takers. This is your worst podcast host Andrew Stotz saying. I'll see you on the upside.