Author: Create Wealth Through Long-Term Investing and Short-Term Trading

Investing Made Simple by Uncle8888 (25)

Read? Investing Made Simple by Uncle8888 (24) Read? Don’t Be a Yield Pig Who is the Yield Pig? Someone who is chasing for higher yield without seriously considering the risk of capital loss in risk/reward analysis. Risk, Inflation, and Time Horizon So what is the risk in stock investing? Capital loss? So is capital loss the real risk in stock investing? Yes or no. It is actually very much depending on your investing time horizon. If you are a very short-term investor who will need money next year to fund big ticket expenses. Your risk is capital loss as...

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Average Down or Average Up. Know Your Maths!

Read? Bear market is here. Let’s accumulate more by average down? (2) Before you decide to average down or average up, know your Maths. It is simple mathematics on risks. Assuming you have 2-3 batches of $10K each to average down or average up. When you average up, with the $10K per batch purchase you will be buying less and less quantity of stocks on the way...

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Cash is King. It is back!

Just For Thinking …. We have been seeing some people have already cut their losses or cut short their profits to stay cash in hand. They believe that in the current market condition. Cash is King. It is back in fashion. We have to fully understand that Cash is King only when we can get back into the market to scoop up enough quantity of under valued stocks when market has fallen beyond recognition. But, seriously do we have the ability to recognize that market has fallen beyond recognition. I admit that I can’t so I choose not to cut losses...

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Another Debate On Property Or Stocks Investing (9)

Read? Another Debate On Property Or Stocks Investing – Part8 I often read in the blogs space, forums or cboxes that one of many reasons why you should invest in property is something like this: “The difference is property market won’t be like stock market, simply it will not crash to zero value.” Last Sunday, I flipped through one property investment book that was written by a local Singapore author. He similarly said something like this too in his book. The type of reason given is either naive or...

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Investing Made Simple by Uncle8888 (24)

Read? Investing Made Simple by Uncle8888 (23) Emotional tolerance for Risk/Reward In life, we will develop good and bad personal and social habits. We will try to keep good habits and reduce bad habits as far as we could. Similarly, in investing we will develop investing habits. Some investing habits that we have developed may actually hinder us from achieving our long-term investing goals. Our investing habits are likely to be shaped by our emotional tolerance for Risk/Reward and our pain threshold for sitting through paper losses. It is harder to judge whether such investing habits are good or bad as...

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Buy Gold/Silver as insurance or hedge against inflation? (2)

Read? Buy Gold/Silver as insurance or hedge against inflation? The only Gold that I have is my wedding Gold ring I am wearing. Wait till I become multi-millionaire, then I will think about it of hedging tool. Gold itself doesn’t pay dividends and can’t grow by itself. You really need a greater fool to come along to buy it higher. Unlike investing in stocks, it is the job of CEOs and their Boards to grow the company horizontally and/or vertically. Whether they can successfully achieve it or not is another story. For example, look at our home grown companies like...

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Two Bank Accounts? No, You may need Four! – (4)

Read? Two Bank Accounts? No, You may need Four! – (3) My cyber readers, MayBank is now giving you 4 accounts that you need for a peace of mind in investing. hee hee! Maybank Singapore launches new savings management tool SINGAPORE: Maybank Singapore has launched a new savings management tool for its deposit accounts. The bank said that with this innovation, depositors will not need to open multiple savings accounts when saving for different goals and occasions. This means that depositors can create sub-accounts that reside within their main savings account using this free tool. Maybank said that for...

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Competency versus Expectancy

Just For Thinking …. Read? Knowledge versus Competence How to raise competency level? If we continue to be happy with low expectancy e.g. 4-5% ROC even after years of investing in the stock market. Are we be able to raise our competency level with such low expectancy? I like to think that it will be hard. Right? To raise competency level, we will have to continuously challenge ourselves by setting higher progressive investing goals. In this way, we may be able to identify any competency gaps when we are unable to meet progressive higher investing...

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Current Dividend Yield is good but avoid falling into potential Dividend Traps (3)

Read? Dividend Yield is good but avoid falling into potential Dividend Traps (2) Recently, I realized that I have been reading more blog posts championing dividend yield investing as the way forward to invest as the market diving deeper into the Bear Market. We can easily understand the sentiment of fears in a bear market of falling stock prices. It can hurt us badly and force us to appreciate the attractive bird-in-hand element in dividend yielding stocks. But avoid falling into dividend trap by seriously looking and evaluating their dividend payout ratio and potential capital appreciation when the Bull comes roaring back....

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Investing Made Simple by Uncle8888 (23)

Read? Investing Made Simple by Uncle8888 (22) Beware of Little Black Swan in your Portfolio What does Uncle8888 fear most? Bear or Swan? Uncle8888 fears that Little Black Swan in his portfolio most. Some people have been asking him when he is going to add more of this stock or more of that stock. No, no, no once he has enough he is not going to add more. Uncle8888 is terribly scare of keeping a Little Black Swan in his portfolio. Why did Uncle8888 can’t keep buying more of the same stock? Firstly, he is not so smart. Secondly, he...

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Fattening your Wallet or Fattening your Ego?

Just For Thinking ….. When investing in the stock market, do you want to flatten your Wallet more and then laughing to the bank or you are fattening your Ego much more than your wallet. If you want to flatten your Wallet much more than your Ego; then do this –  More Investing and Less Analyzing. Check your 3M’s – Method,  Mind, and Money. Place more focus on Mind and Money. Your method may be simple; but your Mind must be strong and steady. Your Money management must be sound so that you will have some money to invest in long bear...

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Bear market is here. Let’s accumulate more by average down? (2)

Read? Bear market is here. Let’s accumulate more by average down? Let me repeat it again. If you are small retail investor like me; then must learn to know the big difference between Average In and Average Down in term of risks control and portfolio management. Average down How do you know you are averaging down and not averaging in? You must ask yourself these two question: (1) Did plan for this level of capital into your beloved stock? e.g. 20 or 30% of your capital (2) Did you bought more of it due to its falling stock price since it has become cheaper, more...

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