As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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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.

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Sunday, 22 November 2009

The Compound Magic Of Stock Transaction Timing - Part 2

I believe many investors love the Rule Of 72 and start thinking how long would it take to double their investing capital?

Take a good look at STI main data point since 1990. We have to be realistic and mindful that the Rule of 72 can only work well in a prolong Bull market or unless Investors turn into Speculators and start shorting the market on the way down.

For the Rule of 72 to really work in our favor, we may have to time the market; and have to be good at market timing to avoid those market crashes or major corrections. It just takes 1 or 2 bad years to wipe off much of the past gains if our portfolio is caught by market crashes or major corrections.

So do you think that market timing is important for Rule Of 72 to work for you?

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