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

Home for Living and not for profit taking (6)

Read? Home for Living and not for profit taking (5) Reading is easy and writing is hard. To keep writing more to defend a particular view is even harder. When it becomes necessary to defend it further, I will have no choice but to do it. I will have no issue when peoples start debating Property vs. Stocks investing. Each side will share their own investing experiences and performance results. Each side will try to convince each other that one of them is more right than the other and I have no problem in accepting either conclusion. But, when some people start to compare their...

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Home for Living and not for profit taking (5)

Read? Home for Living and not for profit taking (4) Let re-visit the story of ex-neighbour who used to live one floor below. After selling his 4 rm HDB flat and he bought another 4 rm HDB flat which is a few bus stops away from his previous flat. So as case study, let us simplify some figure to make it easier to understand the Maths involved. Cost of 1st flat = $55K Sales of 1st flat = $300K Paid back to CPF OA including back-date interests = $100K So profit = $200K Do you think that he made $200K...

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Two faces of debt: The Good and The Bad

The Good Unless your residential home is a gift from your parents, you will have no choice but to take up your housing loan as good debt. This is also the cheapest loan in town. But, before you start thinking that this housing loan is definitely good debt and there is no mistake about it. Now I ask you to make sober estimates of your ability to repay and to factor in the likelihood that you or your spouse may suddenly out of the workforce for awhile and unable to bring in that additional income to pay part of the monthly mortgage...

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Dividend Yield is good but avoid falling into potential Dividend Traps

Re-posting this article under different label after reading an email from one reader. In the stock market where does the Money come from? A picture is worth a thousand words. When you see a picture, it will strongly embedded in your mind for a long time As you can see from the picture. Companies DISTRIBUTE stock dividends and other Investors/Traders in the stock market all together significantly CONTRIBUTE to the capital appreciation of stocks. The amount of money distributed by companies is pale compared to the amount of money contributed by other investors/traders. Firstly, you are either contributing to the...

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Reaching 55 soon – CPF Minimum Sum @ $131K

Just For Thinking … Read? Reaching 55 soon – The Last investing Goal! CPF Minimum Sum The Ministry of Manpower announced in August 2003 that the CPF Minimum Sum (MS) will be raised gradually to reach $120,000 (in 2003 dollars) in 2013. The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement. In line with this policy, from 1 July 2011, the prevailing MS will be revised to $131,000, up from $123,000. Members who can set aside the MS fully in cash can apply to commence their...

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Investing Made Simple by Uncle8888 (20)

Read? Investing Made Simple by Uncle8888 (19) Control Risk is NOT a choice in Investing How does Uncle8888 control his risks? Limit investing capital exposure to any one stock. Diversify but Don’t Over-Diversify in any one sector. Limit investing capital exposure to any one stock When his account size was small, he limits it to at most 10% of his total investing capital to any one stock and less than 20% to any one sector. But now his account size is bigger he limits to 5% to any one stock and less than 10% in any one sector. He...

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Noble: Bought @ $1.79 Caught a falling knife!!!

Since 2008, I have been fighting Noble with only three commandos. Today, the last commando was thrown into the battlefield too. Let see how they will survive in the battlefield. No 3 Commando: $1.79 (Front Line) No 2 Commando: $1.85 (Front Line) No 1 Commando: $0.688 (Guarding Base Camp since Dec 2008) Today, I caught a falling knife! That is dangerous. Noble is such volatile stock. Past ROC for 14 rounds since 15 Jul 2008 ranging from 3.8% to 34.3%. Round 14: ROC 10.9%, 20 days, B $1.98 S $2.21 Round 13: ROC 20.8%, 185 days, B $1.72 S $2.08 (Price...

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Investing Made Simple by Uncle8888 (19)

Read? Investing Made Simple by Uncle8888 (18) In Uncle8888 series (16) – How to invest and make big money in the stock market? The key learning point is “Men who can both be right and sit tight are uncommon.” Uncle8888 also mentioned “Buy and Hold is Dead“. Men who can both be right and sit tight are uncommon. Buy and Hold is Dead. Two questions arise from the above two statements. Does these two statements contradict each other? Is statement No 1 useless advice?  (Brolp said: it’s useless advice actually – when right sit tight. It’s almost like saying...

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Investing Made Simple by Uncle8888 (18)

Read? Investing Made Simple by Uncle8888 (17) In Investing, Control Risk is NOT a Choice In investing, control risk is NOT a choice; but a strict requirement to survive in the Law of Jungle in the stock market. You MUST have adequate investing capital to come back when you have fall in the stock market. But, you don’t need to win back in the same manner as you have lost it. Uncle8888 has personally tested it in the last Great Bear 2008/09 and it works. As small retail investors who have limited time and resources to analyze the companies...

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Investing Made Simple by Uncle8888 (16)

Read? Investing Made Simple by Uncle8888 (15) How to invest and make big money in the stock market? What you think? Buy and hold? Buy and hold may or may not lead to making big money in the stock market. But, I will share with you The Art of Making Big Money in the stock market that I learnt from my Sifu, Jessie Livermore. It is RIGHT AND HOLD. It is different from BUY AND HOLD. Know the difference. You may be on the way to making big money in the stock market. In the buy and hold strategy,...

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H1 FY 2011 Performance Report : Down -4.8% from H1 2010

Year Goal Hit Rate (In 2003, I set some bullish progressive year goals from 2003 to 2011; and 2011 Year Goal is 76.8% of 2010 Total Salary including all CPF contributions. Quite a big goal to achieve!) Year Goal Hit Rate for 2011 fell by -4.8% from 35.5% in H1 FY 10 to 30.7% in H1 FY 11. The poor goal hit was due to lack of new trading positions in the quarter and rolling forward the realization of profits to next quarter for Olam and Noble. Active Investing Performance Since Nov 08 after I have given up active...

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In Investing – difference between committed and involved

Read? Bacon and eggs – difference between committed and involved SMOL asked: Can you see the difference between being committed and involved? The pig is committed, while the hen is involved. Do you see parallels between the above story and you? 1) Your relationship? 2) Your business partner? 3) Your work place? 4) Your investing/trading journey? In investing, how many retail investors are involved with their investing by getting their hands dirty and sometime bloody. Often, most retail investors forget that in the stock market there is no place for newbies and amateurs. Once you are in the market, you...

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Following My Superheroes!

Just For Thinking …. Wow! My Superheroes When I was young, I read a lots of comics on Superheroes. I really love them and sometime I would dream of becoming the next superhero. Then I was an adult, I have my Online Superheroes In 200x, practically, I was visiting every investment blogs, cboxes, and forums that I came to know. I was hoping to find my online Superheroes in investing/trading in some of them. I was hoping to learn the magical power from them and also dreaming to become the next Superhero like them. Some investment bloggers are more transparent, confidence and...

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Technical Indicators? (4) – Does it really matter in SG stock market?

Borrow the idea from La Papillion ** “BIAS” is a special feature in my blog where I get to say whatever I want with scant regards for your feelings. I’m not politically correct in this feature, so go ahead, judge me.” Read? Fundamental or Technical Analysis? (4) Read? Technical Indicators? (3) Read? Who Moves My Market? – Part 2 Read? Proprietary trader fined S$200,000 for manipulating stock market Not enough? Want more? Gohsip once commented:  Uncle8888,  you said “if you look at my charts posted with those technical indicators, they are just there to confuse people. LOL.” You damn...

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Will You Try To Pay Off Your Housing Loan ASAP If You Have One? (10)

Read? Will You Try To Pay Off Your Housing Loan ASAP If You Have One? (9) Fully paid home may go beyond the Returns of investment dollars and opportunity cost What is the dollar value of the Mind of Peace and Beloved Gift to your family when you are gone? The best gifts to leave behind for our family when we are gone are (1) fully paid home (if not, then fully insured mortgage insurance), (2) adequate life insurance coverage and (3) well written Will. We should aim for ONE THING LESS to worry for them. So, what is the...

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