I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday 4 October 2009

Portfolio Management - Price Volatilty


http://createwealth8888.blogspot.com/2009/10/portfolio-management-market-forecast.html

Knowledge born from actual experience is the answer to why one profits; lack of it is the reason one loses - Gerald M. Loeb

George Soros earned his reputation and a lot of financial rewards by understanding risk and return has his views on volatility, risks, and returns. He said that asset classes and stocks that have the lowest short-term volatility also generate lowest long-term returns.

Short-term Price Volatility May Not Be Risk To Some.

If you are investing with high leverages, then short-term price volatility that goes against you will pose significant risks.

If you are trading with time decay, also short-term price volatility that goes against you will pose significant risks.

If you have strong holding power, why do you see short-term price volatility as a risk?

Learn to love short-term price volatility.

Volatility is your friend and it provides you opportunities to compound your gains in the market.

To obtain truly significant returns you must allow for volatility in short-term pricing of your portfolio and allows you to actively manage your Portfolio mix - continuous reallocation of different stocks and cash level.

Did you smile or frown last Friday when STI was down -1.99%?

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