Should our investing decisions be continuous struggle???
Someone asked me few questions last night ....
To take some profit since market is trending higher and the chance of Bear market is even nearer? How about capital re-cycling? Is collecting dividend a bit slow in building wealth from the stock market?
Uncle8888 has went through such questions before. He is quite sure many more retail investors who have smaller account size may be asking similar questions themselves.
Are we continuously struggling with our investing decisions across market cycles of Bulls and Bears?
One way to ease our continuous struggle in making investing decisions is to use Goal Based Investing Approach.
One, clearly set your Investing Goals Two, track and measure your investing performance Three, continuous improve your portfolio and money management skills Four, knowing where you want to go and knowing how you are doing along your investing journey will help to ease your continuous struggle in making investing decision across market cycles.
You will feel happy when you can see money crediting to your bank from CDP on quarterly basis; then dividend income investing should be good fit for you. It will help to ease your continuous struggle in making investing decisions as the next quarter is always around the corner. No meh?
Many time, Uncle888 have seen many happy retail investors posting in the cboxes and forums.
Dividend is coming ...
You may want to think of S-REITs and some other high dividend payout ratio counters like ST Eng or SPH.
Sometime ST Eng or SPH even paid out 100% of their earning for you to count money.
But, for retail investors like Uncle8888 who don't have large account size to start off in the stock market.
Sometime, we have to be realistic! It is quite obvious that by counting money credited by CDP into our bank account and by slowly accumulating these dividends till the money is large enough for re-investing. It is definitely going to be slow approach in building wealth from the stock market.
Why do we think re-investing dividends for compounding growth is easy?
Do we believe that by the time we have accumulated fairly large money from dividends to re-invest, the market may have already move much higher that the investing opportunity for higher yield could have been lost. No???
When you feel happy when you make some money that is good enough to take your family to Swensen for set meals and ice-cream; then do small trading instead of long-term investing as there are likely to be more chances of going to Swensen.
If you want to be investor, then it is good to know thyself.
Last updated : 14 Sep 2019
I am 63 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 20 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2038.
Disclaimer: Stock trading involves significant risks. Create Wealth trader is not a licensed Investment Adviser and will not be responsible for any losses which you incurred. You are advised to always do your own homework before making any trading decision.