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!


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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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Thursday 3 April 2014

Don't be a victim! 3 ways to control your investing destiny

 Lee Munson of Portfolio LLC ticks off three ways investors hurt themselvse more than the crooks every could.


1. Focus on the size of your nest egg not your monthly performance

Did you beat the S&P500 (^GSPC) in the first quarter? Trick question. The real answer is that it doesn’t matter. After you retire you won’t be able to pay your bills on outperformance. You need to build wealth. That means patiently contributing to a retirement fund not outperforming your neighbor.

“What matters is that when you retire you have enough income to pay yourself,” suggests Munson. Brag about your performance all you want but if you can’t spend it in a grocery store after you retire it doesn’t count as real money.

2. Trade less

For all the attention brought to the dangers of trading on Wall Street the fact is it’s never been easier or more efficient for individuals to daytrade. As Felix Salmon pointed out yesterday most transaction never get anywhere near a trading floor. Execution and commision are fine, the problem is trading itself.

Munson suggests carving out a small trading account for your speculative investments. Most investors have a little gambler in them. Rather than pretend otherwise carve out some speculative assets for your higher-risk speculations but keep your retirement funds sacrosanct.

3. Trade smart

Munson was once a high-flying NY trader. Now he’s seen the light, focusing on building long-term wealth for more passive investors. He’s found the switch to “boring” to be much more profitable than when speed trading.

“Get a plan and be very, very boring. If you want to make more money it’s not about chasing alpha or chasing down trades. It’s about systematically working a plan.”

People who absolutely must trade can carve out their speculative accounts as suggested above but they should expect to lose. That being the case Munson would rather take his cash and go to Vegas. “I prefer casinos where you get a free show and a buffet.”

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