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

Measure, Measure, Measure (4) – Revist

Singapore Stock Picker said… I did try it. But your example did not show what happens when you sell shares. All three only show, when you add capital. I tried to google for the answer to no avail too… If anyone else has problem you may “google” Uncle8888 for help. LOL XIRR is a tool to track ROC and it is not a tool to track portfolio. For portfolio tracking, you may need to use a separate worksheet to track it. Suggested sample is as follows: and then you link “Portfolio Value at Closing Price” back to “Portfolio Value”...

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Investing Made Simple by Uncle8888

First thing first, Simple is not Easy! Uncle8888 defines “Simple” as follows: “You don’t need to spend hours and hours of your time in analyzing the company upside down and inside out; and no need to take your annual leave to attend AGMs unless you want to have free meals.” Once you get a handle over Investing, it is just analyzing less and investing more. Investing is like growing your Money Tree! You ride on the Bull with multi-baggers to do it! That is the reason why I say Simple is not Easy as finding potential multi-baggers is not easy....

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Keynes on the Rational Savers

Read? The Psychology of Money After knowing the psychology of money, it might be interesting to know the next topic – the psychology of rational savers by Keynes. (John Maynard Keynes, 1st Baron Keynes, CB was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics) Precaution To build up a reserve against unforeseen contingencies. Foresight To provide for an anticipated future relation between the income and needs of the individual or his family different from that which exists in the present (old age, education). Calculation To enjoy interest and appreciation – because larger...

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Reading and Mind Flip

Just for Laugh … I believe many of us may have spend some time reading books and articles related to personal finance, motivation, trading and investment, etc. We don’t read such books or articles for fun. Right? We might be looking for some good and useful ideas presented by the authors and we even want to try out these ideas on ourselves to see whether the ideas works for us. Sometime, we may have momentary “aha effect” ; but after a while not much changes happened  to our life journey or financial life journey. We are likely to be more or less...

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3 bananas in the Morning and 4 in the Afternoon (2)

Just for Laugh … Read? 3 bananas in the Morning and 4 in the Afternoon Uncle8888 explained his version of the moral of story .. I guess you know who are the monkeys? Mr. Market is the Zoo Keeper. Why are you so upset when you only receive 3 bananas in the Morning? What is your goal in the market? Trading for an income to put food on the table? Investing to build up wealth for your retirement, kid’s University fund etc when you are in the 30s or 40s? When you are trading for an income to put food on...

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3 bananas in the Morning and 4 in the Afternoon

Just for Laugh … Zhuangzi told this story to his disciples to make a point. Once a zookeeper said to his monkeys: “You’ll get 3 bananas in the Morning and 4 in the Afternoon.” All monkeys are upset. “OK. How about 4 bananas in Morning and 3 in the Afternoon?” Hearing this, the monkeys are content. One should realize that sometimes a change in phrasing does not represent a real change. ——————————————-   Createwealth8888 tells another story ..   Under current low interest rate of 0.X%, some investors are upset of having three bananas in Morning and they want...

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Value Investing Made Simple by Uncle Chua (2)

Read? Value Investing Made Simple by Uncle Chua Can you be the next Uncle Chua? What can we learn from Uncle Chua? Let Uncle8888 continues with the story with his favourite 3M’s theory. Read? 3M’s Theory. Method Complicated method of stock picking is NOT pre-requisite for making money in the stock market. A simple method like buying blue chips that pay dividends slowly over the bear market is equally effective in making lots of money over long run. This method may look simple; but it is not easy to do it. One guy said: “Blue chips is no brainer when market collapses.”...

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Have you spend enough time thinking on your money management stratgeies? (3)

Read? Have you spend enough time thinking on your money management stratgeies? (2) From Daryl Guppy’s Money Management Rule Zero Cost Averaging This is how it works? Sell 50% of the position once the unrealized profit reaches 100% of the initial invested capital. For example: Bought 10 lots of Stock A at $1 When Stock A reaches $2, then sell 5 lots (50%) and hold the other 50% to run with the Bulls. The remaining 50% is now at zero cost i.e. all invested capital has been taken back. Zero Cost Averaging is the money management used to protect...

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Fundamental or Technical Analysis? (4)

Read? Fundamental or Technical Analysis? (3) Not the first and will never be the last debate. LOL. Read? stocks moves because of BB, not bcos of your illusioned TA I think we should treat TA, FA or both as Guidebooks and not as Holy Grail. There is no Holy Grail in trading/investing. What can TA/FA do for us as Retail Trader/Investor? It can help us in the following ways: Guide us into believing that we are not making stupid mistakes when we lose money in the stock market. Use them as excuses to comfort our sorrows/angers when we lose money in...

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Have you spend enough time thinking on your money management stratgeies? (2)

How many investors spent enough time seriously thinking about Money Management strategies? I believe most investors tend to spend more time thinking on Method and trying to improve it; but don’t forget that Money Management is important too. Read? Have you spend enough time thinking on your money management stratgeies? Two of Jesse Livermore’s Money Management Rules 3) Keep cash in reserve. The successful speculator must always have cash in reserve.. .for exactly the right moment. There is a never-ending stream of opportunities in the stock market and, if you miss a good opportunity, wait a little while, be...

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Have you spend enough time thinking on your money management stratgeies?

Read? Method, Money, and Mind How many investors spent enough time seriously thinking about Money Management strategies? I believe most investors tend to spend more time thinking on Method and trying to improve it; but don’t forget that Money Management is important too. From Larry William’s Trading Rules: 5. Money management is the creation of wealth. Sure, you can make money as a trader or investor, have a good time, and get some great stories to tell. But, the extrapolation of profits will not come as much from your trading and investing skills as how you manage your money. I’m...

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Hey! What type of investors are you?

Just for Laugh … Yesterday, at lunch one of colleagues asked me what type of investor am I? TA driven? I don’t think so. As drawing a few simple horizontal lines and a few diagonal lines can’t really make me a charting technician. FA driven? Not really too as I believe that attending AGMs is waste of time for working people with limited annual leaves but AGMs are good for retirees to have free makans. I also don’t read annual reports as details reported are most likely to be outdated in terms of “market timing” as most Smart Money or...

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Portfolio Management – Measuring your success!

Read? Portfolio Management – Too much cash may become a problem (2) How do you measure your investing success in the stock market? First thing first, STOP doing this! Momentarily in Agony over a losing stock? That is not a wise thing to do. It is expected that most people are going to lose money in the stock market and may even lose big ones in their investing/trading life-cycle over multi-years of bulls and bears. Yes, so far I have picked a few MULTI-BAGGERS but I also picked two ZERO-BEGGARS. The fact is when you start looking for potential multi-baggers, you may...

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Funding Your Child’s University in the Future?

How will be the cost of your child’s university education like in the future? At a glance now Jan 2011: This is what I have spend on the two kids so far- all expenses incurred on the kids themselves but excluding common expenses e.g. family meals After 1.5 years including two full years of tuition fees, all expenses are as follows: SMU: $25.7K (Higher tuition fee and higher meal costs at campus) – Daughter NUS: $18.6K – Son Remember that they are young adults so they may incur some costs in socializing with friends for  entertainment and meals. And for daughters,...

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4 financial experts’ forecast for this year

invest pg 23, Jan 2, 2011, thesundaytimes Let see how their forecast end in 2011? Janice chua, Head of DBS STI – 3,500-3,600 Indofood Agri, $3.20 SML, $5.48 Kep Corp, $12.20 Cosco, $2.35 Genting, $2.70 SIA, $18.50 UOL, $5.23 CDLHT, $2.28 Terence Wong, Executive director at DMG & Partners Research CDLHT, $2.51 FJ Benjamin, $0.52 Sino Grandness, $0.56 Ezion, $1.00 First Resources, $2.05 Carmen Lee, OCBC Investment Research, Head of research STI, 3500 Ascott RT, $1.38 Biosensors at $1.35 CPL, $4.54 DBS, $16 Ezra, $2.27 Genting, $2.53 Hyflux, $3.66 Kep Corp, $12.50 Mapletree LT, $1 Noble, $2.59 Olam, $3.53...

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