Author: Dr Wealth

Passion or Not?

I was preparing this post as a draft and before I got it ready to published, La Papillion beat me to it! But you should carry on reading this post before moving to his. If you don’t read this, you should at least read his (I’m serious). I have been told not to focus on making money, but to find what I am passionate about and do it. Chances are if you are passionate about something, you tend to do it better than most people and this puts you to the top of the field. Hence, money will come...

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China Oil and Gas and IndoAgri – closed on 22 Mar 10

China Oil and Gas: After a few weeks of good run in the stock market, it finally pulled back today. I have 2 oil related stocks which could not withhold the drop, and broke below the support. The first is China Oil and Gas as shown in the chart above. I entered rather late, after the price broke above the resistance. As I was optimistic with oil stocks, I got in within 6% above the resistance. Commodities have not been doing well as compared to the other sectors recently. Even the run up was not significant for them to...

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Who owns what? – Singapore Commercial and Retail Properties

http://thefinance.sg/wp-content/uploads/2009/11/Driving-The-Volvo.jpgI believe in the 20/80 rule, especially in the realm of wealth. 20% of the rich controls or owns 80% of the wealth (in fact I believe it is more skewed than this). Hence, I have a personal quest to discover who owns what in Singapore, and hope to present my findings in a series of posts. And I have a hunch that I could link most of the assets to the hands of a few rich owners. Let’s begin with the real estate since Singapore is land scarce and of high value. In particular, I am only going to...

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Your investment capital looks like this

Everyone has seen how stock charts look like. But have you seen the chart for your investment capital – how your capital rise and fall with time? The way your investment capital moves depend on the type of investor. I have heavily generalised 3 kinds of charts for the Buy-and-Hold investor, Trader and the Clueless investor. This is important because all of us would always monitor our capital time to time to see if it has grown. By doing this, we subject our happiness to it’s rise and dejection to it’s fall. And whether we still have the tenacity to continue...

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Lessons Learnt as a Trader (so far)

It’s only been almost 2 years since I began trading and I must say I am still learning how to trade. I have summarized the lessons learnt so far in my trading journey: Be patient and wait for the best opportunity to place a trade Trading is really a patient game. It is not as quick as I imagined in the first place. The duration of the trade can be short, but the time waiting to place a trade is very much longer. The thought of profits urges me to be involved in the market and it just makes the wait feels like eternity. Sometimes, the charts do not show...

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Illusion of Winning

I have a fear. It is more frightening than not having enough money. Yet it is unknown and undeterminable. I do not know if it is lurking and waiting somewhere in the future and eventually haunt me one day. I have a fear – the possibiliy of having a black swan that kills me in the end. More about the black swan later. Why is this fear frightening? Simply because it gives you the false illusion that you are right for a very long time, say 20 years, and then one day, something opposite happens and take away whatever you have. And...

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The Risk of Focusing Investment in One Country

Globalisation is an overused word. People have been using the word but not sure how it actually affects them in the real world. I would say our mindset is still very country centric and one good example is investment. How many of us actually have investments well diversified all around the world? I believe most of us invest in our own country more than the others. As my title suggests, what is the risk of focusing the investment in one country? Kenneth Fisher would like to expose the risk to you. Below is the table (extracted from “The Only Three...

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Trading Report Card – Jan 10

My trading goal that I set for this year is to make an average of S$2,000 every month. Please do note that trading income is never consistent, and it can vary greatly month to month. Although I use the word “average”, it may mislead to I aim to attain S$2,000 every month. It makes more sense to use the total value for the entire year where S$2,000 per month will translate to S$24,000 by end of this year. With this month’s profit of S$599.34, I am left with S$23,400.66 to achieve for the rest of the year. I think it is easier...

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Applying Sun Tzu’s Art of War to Trading

Sun Tzu’s Art of War is a classic piece of work that is widely read and applied to many fields, due to it’s fundamental nature that is highly adaptable to many areas of our lives. In this post, I extracted parts of the work and applied to trading and in doing so, hope to introduce the important trading concepts to you. I have also group and categorize them for easy understanding. To put it in the context of trading, I have rationalised the following terms: – General = You, the trader – Battle = Trading the market/making a trade –...

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Capital is key to Profitable Trading

Today, I finally took action and made a step out of my comfort zone. I think it started from my trading goals (guess by now some of you know about my trading goals for 2010). And this is why we must set goals. At first, we may not have a clue on how to achieve our goals. But along the way, we tend to see possibilities that we previously failed to recognise and begin to make adjustments. If you asked me, I did not know how to achieve my trading goals but I want to attain them. Recently, T3B...

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Fading Breakout with Trendlines for FOREX

It was said that amateurs like to trade breakouts (buy when price breaks resistance and sell when price breaks support) and the professionals like to do the oppposite. In fact, false breakouts are more frequent than real ones, hence, it may be profitable to trade with the pros. I read about this method from Grace Chang’s book, “7 Winning Strategies for Trading Forex“. There are many ways to fade breakouts but she recommends using a trendline. Note that this method is for FOREX and may not be proven in stocks or other markets. Rules: 1) Use a time frame...

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My STI ETF Survived the Sub-prime Crisis

I have mentioned that I have been putting aside $400 every month into STI ETF, through POEMS Sharebuilder plan. I started the investment about 2-3 years ago and only contributed $200 per month. It was only about mid-2009 that I increased the contribution to $400. We all know that due to the US Sub-prime crisis, the market took a beating and plunged. My STI ETF sank too. But I held on to the Sharebuilder plan, believing that dollar cost averaging will work better for me in a down market. Dollar cost averaging (DCA) is to use a fixed sum of money to...

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Trading Report Card – Dec 09 and Year 2009

Coming to the end of 2009, I have decided to do a roundup on how I fared in trading for the entire year and not forgetting the regular monthly trading report for the month of Dec. Let’s begin to take a look at the Dec results: I have 3 realised losses but have 7 other stocks in positive region now, which I have brought over to the new year. IndoAgri is still my biggest winner in 2009 and right now I am still holding on to it. In fact I capitalize further by adding my position with another lot....

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Trading Goals for 2010

We are nearing the end of 2009 and it is a time to set goals again. I remember I read somewhere that by setting goals, you put yourself in the top 10% among people. And by taking action towards your goals, you are in the top 1%. I used to think setting goals is futile and not helpful at all. If you do not find it helpful too, it is likely that the goals are not inspiring to you. To me, goals are sources of inspirations and are are supposed to give you the drive to work towards them....

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Property Run in 2010?

It seems like the property market has cooled a little in Singapore. However, based on the figures on the Residential Property Price Index, the 3rd Quarter prices are still higher than the previous 2 quarters. We are halfway from the 08 peak and even further away from 97 peak. Will 2010 continue to see property prices rising? If you have read my previous post, I have mentioned that property stocks tend to lead the property market from 3 to 6 months. Read...

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