To Investing HELL in 2009 and Back
If you have been reading Uncle8888 blog since 2006, you will know that his investing journey is not all rosy and sweet. There were moments of horrors and sorrows; but Uncle8888 has managed to survive to tell you this. You can lose your money in the stock market; but DON'T ever lose your confidence in stock investing.
Keep learning and revising your strategy to meet your investing goals.
Uncle8888 strongly believes that for some small retail investors who are not high income earners like him (His Growth Dividend is $700. His Child Tax Rebates - Uncle8888 couldn't even use up in 14 years while some people could use it up in just 3 years! He is from Single Income household with 3 kids).
Keep learning and revising your strategy to meet your investing goals.
Uncle8888 strongly believes that for some small retail investors who are not high income earners like him (His Growth Dividend is $700. His Child Tax Rebates - Uncle8888 couldn't even use up in 14 years while some people could use it up in just 3 years! He is from Single Income household with 3 kids).
Stock market is the still a good place to build up your wealth slowly without taking too much risks to supplement your small saving (unless you want to squeeze every penny out of your expenses) from your day job.
Uncle8888 is just like your next door neighbour in HDB heartland. If he can do it. You can too!
Uncle8888 is now nearer to his Financial Independence stage in 2011 as in 2007
As of last market closing on 21 Apr 20011, his net worth is 8% more to go before stepping into his Financial Independence stage where staying employed becomes an option.
How did Uncle8888 make it back from Investing Hell?
No Leverages, No Property, No Overseas stocks, No Penny stocks, and No S-chips. He just holds a few long-term multi-baggers blue chips and doing many short-term trading on some blue chips. Nothing fanciful. You can even say that he is totally RISK Averse .
What are the few Blue Chips he holds and trades?
Kep Corp, SCI, DBS, Noble, SML, Olam, CPL, NOL, ...
Happy Easter!
As of last market closing on 21 Apr 20011, his net worth is 8% more to go before stepping into his Financial Independence stage where staying employed becomes an option.
In 2007, he didn't believe that Big Bear was any time sooner and he was caught naked. This time is different, he now guards against the Bear and is better prepared for it; but he fears the Black Swan most. He only smiles a little at the Bull and not too greedy to want more from the market.
No Leverages, No Property, No Overseas stocks, No Penny stocks, and No S-chips. He just holds a few long-term multi-baggers blue chips and doing many short-term trading on some blue chips. Nothing fanciful. You can even say that he is totally RISK Averse .
What are the few Blue Chips he holds and trades?
Kep Corp, SCI, DBS, Noble, SML, Olam, CPL, NOL, ...
Happy Easter!
This post may be an Easter Egg for you to regain your confidence in making money in the stock market if you have been losing money till now.
Posts
Hi CW,
ReplyDelete"No Penny stocks, and No S-chips. He just holds a few long-term multi-baggers blue chips and doing many short-term trading on some blue chips. Nothing fanciful. You can even say that he is totally RISK Averse".
This strategy seems to be applicable for the retiree's portfolio. But only if "Money Management"(Asset/Risk allocations)are taken care off first. Because all long-term investment holders will meet the Bear or even more frightening the "Black Swan" at least once.
If you are caught "unprepared", it means you have not understand or ignore this:-
The Essence of Investment Management is the Management of Risks, not the Management of returns”, Benjamin Graham.
“Therefore Proper Allocation of Assets and Entry Level are the 2 most crucial actions.
Nothing you can do is better to Control Risks and Generate profit,” Dick Davis
Prepared = Stop Losses or Trailing Stop Losses in place?
ReplyDeleteMy views on stop-losses
ReplyDeletePrepared = Quite number of units of Commandoes on stand-by duties.
Hi,
ReplyDeleteFor me,
"Prepared" = "What Is The Right Asset Allocation For You?
"Finding the appropriate asset allocation requires you to know your own financial and life situation and yourself. You must analyze your net worth, employment and income, saving rate, spending rate, housing situation, income you will need for savings, when you will need it and who is getting the remainder when you are gone.
Beyond that the right allocation is the one that you can live with during a deep and prolonged bear market. It’s a mix where you will be ready to buy more stocks as stocks fall and sell stocks as they rise.
It doesn’t do any good to be brave and select a risky allocation that you don’t have the stomach to stick with during the poor market conditions".