As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



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Value Investing
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Thursday, 24 September 2009

Stock Market Is War - Part 2

Read? Stock Market Is War - Part 1

In modern war, being a General is not enough, you need to be the Commander-In-Chief of three forces - Air, Sea, and Land.





Is your Portfolio also consists of Air, Sea, and Land - diversified forces of power so that you can endure attack from the Market from any corner and still survive without badly damage.

Not all stocks will be hit with the same degree of destruction, and surprisingly, some of them may even rise in a down market - this is known as Sector Rotation in play.

When you have Holding Power, it can only help you to prevent panic selling and exit market with big losses. But, Holding Power may not necessary enable you to recover back to the previous level of fall.

Just like your three forces - Air, Sea, and Land are all engaged at the battlefield; they are fully exhausted, and really unable to push forward anymore. You as the Commander-In-Chief will then need to activate your Reservists - your fresh reserve force to help you to push forward and to recover lost battleground.

So to really recover from your losses besides your Holding Power, you will still need fresh Firing Power - your Reservists.

So have you been keeping your Reservists ever ready when the needs arise?

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