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

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 I also don’t read annual reports as details reported are most likely to be outdated in terms of “market timing” as most Smart Money or...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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Are you one of high income earners in 2009 in Singapore?

Read? Compare Your Annual Income 2010 against others in Singapore? Read? Benchmark Your Monthly Pay By Age & Gender 2010 To compare your “gross monthly income”, divide your total income (including bonus) by 12 Comparing with all age groups, your gross monthly pay of $X places you at the Yth percentile among both genders. You are in the top Z% of your cohort. At a glance: So are you happy with your placing for gross monthly income in 2009 in Singapore?...

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My War Room (6) – The Lost Years

Read? My War Room (5) “Sometime we may learn from other people’s experiences but at times we may have to re-look at our own experiences and learn from them as well.” – Createwealth8888. “There are two ways to learn a good lesson: one way is to learn it through the hard way by getting yourself hurt badly or the other way to learn it through the soft way by understanding why the other guy was so badly hurt.” – Createwealth8888 The Lost Years Especially, when you are a GROWTH investor who is not focusing on growing a steady stream...

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FY 2010 Full Year Performance Report : Up +18.2% YoY

Read? 9M FY 10 Quarterly Performance Report Year Goal Hit Rate (In 2003, I set some bullish progressive year goals from 2003 to 2011 and 2010 Year Goal is 74.9% of 2009 Total Salary including all CPF contributions. Quite a big goal to achieve!) Year Goal Hit Rate improved by +18.2% from 47.8% in FY2009 to 66.0% in FY2010. Active Investing Performance Since Nov 08 after I have given up active contra trading and revised my active investing/trading strategies. Performance indicators are as follows: Historical ROC per Trade Distribution Going forward, I think the days of high double digit ROC are likely...

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Measure, Measure, Measure (4)

Read? Measure, Measure, Measure (3) I realize that some of you may have problem using CAGR to measure your performance as you may periodically add more capitals into your portfolio. In this case, you may want to use Microsoft Excel function: XIRR to calculate and return the internal rate of return of an investment. IRR (Internal Rate of Return) is quite close to CAGR as an alternate mean of measuring performance. I have provided three examples on how to use XIRR when you add more capitals as...

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How much is a Reit worth?

We look at the determining factors and valuation measures for a Reit, but bear in mind that valuing a Reit is far more art than science. By Bobby Jayaraman DONALD Trump started off in real estate developing residences in Manhattan in the 1970s when New York was on the brink of bankruptcy. Li Ka Shing scooped up property dirt cheap during the 1967 riots in Hong Kong. The late Ng Teng Fong of Far East Organization was the king of Orchard Road in the 1980s. All these tycoons made fortunes when the value of their investments grew multiple times....

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Reaching 55 – Your CPF Investment Account?

Upon reaching 55, you will have to decide what to do with your CPF Investment Account as you have the option to continue with your CPF Investment Account or close it. So it is for you to decide for yourself based on Cost-wise and Interest-wise. Cost-wise To close CPF Investment Account and transfer share counters to CDP: One time cost per share counter Central Depository (Pte) Ltd (“CDP”) imposes a transfer fee of $10.70 (inclusive of GST) for every share counter transferred from your CPF Investment Account to your CDP Account. To maintain CPF Investment Account: Running costs Service Charge:...

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Are you worried about losing money in the stock market? Me too!

Read? As newbies, did you come thinking of becoming Rich in the Stock Market is easy? Read? Safety Net in the Market? “For the things we have to learn before we can do them, we learn by doing them.” – Aristotle (Aristotle is a towering figure in ancient Greek philosophy, making contributions to logic, metaphysics, mathematics, physics, biology, botany, ethics, politics, agriculture, medicine, dance and theatre.) Likewise, stock investing is a life-time skill to be learned. You have to learn it by exactly doing it; and by doing it ONLY if you are fully aware that if you should...

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Hey! Are you good at stocks? (3)

Read? Hey! Are you good at stocks? (2) Proportion of Primary One cohort admitted into the local subsidized universities While most parents would think or dream that their kids may make it to admission into local subsidized universities; but cold fact is not. It is less than 15% of primary one cohort made it. Why? It is natural process or mechanism of the “system” or “market” to allow only those perform well to reach the highest height or level and the rest have to drop out. It is never easy for kids to reach that highest level without consistently...

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3 Ms of Trading – Mind, Method and Money – Part 4

Read? 3 Ms of Trading – Mind, Method and Money – Part 3 Bad news! There is NO SHORT CUT in Active Investing or Trading if you want to rise above an average investor/trader. You have to develop your own personal investing or trading system yourself or pay some “Gurus” some money to teach you to develop one or subscribe to their trading system; then adjust and adapt some parameters to fix them into your own personality and trading style. (I have also interacted with quite a number of friends/colleagues who have attended such courses. Some have even attended advanced courses with trading templates provided; but sometime...

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