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.

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



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday, 30 October 2016

Don’t Let Your Money Die A Slow Death In Cash Or Don't Gamble With Your Hard Earned Money In The Stock Market???



You are likely to hear from "Gurus" are trying to sell you something relating to investing or trading : Don’t Let Your Money Die A Slow Death In Cash. 

You are likely to hear from your parents or old relatives who are advising you based on their own experience during AFC (1998) in the stock market. Before AFC (1998), CPF members were allowed to invest or trade in whatever way they deemed fit to become rich in the stock market : Don't Gamble With Your Hard Earned Money In The Stock Market.

CW8888: Letting your money die a slow death in cash is more SCARY??? than losing more then 60% of your hard earned saving in less than 24 months (length of Fixed Deposit)





Saturday, 29 October 2016

House Money Effect Bias : The Little Lie We Tell Ourselves. It Helps To Calm Our Investing Mind Across Market Cycles


DEFINITION of 'House Money Effect' The tendency for investors to take more and greater risks when investing with profits. The house money effect gets its name from the casino phrase "playing with the house's money."


Uncle8888 is "suffering" from this house money effect bias. 

But; what wrong with this bias?

This is the little lie he told himself that he won't lose any of his hard earned money from his human asset while still earning his own version of CPF Life on variable annuities. 

House money effect bias is the little lie we tell ourselves that we won't ever lose our own hard earned money.  It will help to calm our investing mind across market cycles so that we won't end up too much cash on hand earning too little cash flow from the volatile and unpredictable market cycles of Bulls and Bears.


This image tells the story how Uncle8888's little lie made him don't feel like a Loser!



Only Outcome That Matters! Doesn't Matter How We do It!!!


Uncle8888 met this old fisherman during his walk around the coast of Singapore walking trail.

We must learn from this old fisherman what he did for his fishing. 

He didn't use fishing line at all as he refuses to cut losses (no breaking of fishing line). He will do with all his strength to recover his "line" and even to the extend of breaking up the hooked fish.

He told Uncle8888 many other fishermen and passers-by shook their head and laughed at him when they saw how he fish. 

To be honest; when Uncle8888 first saw it; he also smiled and said Walau!

Uncle8888 was thick skin even though the old fisherman ignored him; but Uncle8888 hung around and kept talking to him until he opened up and answered his questions on the "secret" behind his fishing method. :-)



Super kiasu!


夸张



Steel wire!



5 mm rope!














Uncle8888 did learn something from him for his investing thinking. In the end; it is our investment outcome that really matters and not HOW.

Big fishes are those multi-baggers that worth photo taking! LOL!



Friday, 28 October 2016

Grasshopper And Ant Have Met TentaCool, Silly Bug and Ladybird For Coffee


Grasshopper and Ant are always bantering; but one thing is common to them at the next turn of the stock market.

They are both retirees depending on cash flow from their investment portfolio. They are not capable of topping up war chest from their human asset so there is NO room for failure!

They can't banter on this view as there is no shade of grey.

"Do or do not, there is no try" - Master Yoda






Verifying Officers Are Not That Dumb!

Read? Feng Tianwei axed for ill-discipline, disrespect and misconduct

“These included the purchase of 200 eggs for breakfast over nine days, and 10 tins of milk over three days. Feng was eventually issued a warning by the STTA, and the cash was returned to the association,” TODAY said.

Uncle8888 served as Verifying Officer for his department petty cash claims.


It is unbelievable she thought that her Verifying Officer is dumb!

Many Offshore Related Enterprises In Singapore!


After Uncle8888's round the Singapore coast walking trail; he has noted that there are so many offshore related enterprises in Singapore at Tuas, Pandan and Loyang areas. The large part of these areas are occupied by offshore support or engineering related companies. If offshore businesses don't turnaround; many families may be badly hit!




Setting financial Goals that are beyond your control???


Hmm .... Huh?

Who are telling you that?

Not to set financial goals that are beyond your control!

It is like telling us not to run a marathon race. You can't set your marathon goal as you can't control your body and legs to make it!

Come here.

Uncle8888 shows you how to run an investment marathon race by setting 10-years Investment Marathon Goals.


Even we can't complete our full marathon race; but we still manage to complete 1/4, 1/2 or 3/4 of the investment race. We are still ahead of those assholes who are telling us that we can't!





Books : On investment, Personal Finance & Retirement Planning



Uncle8888 hasn't stopped reading these books. All investment & finance books are more or less the same same with a few different paragraphs or pages. That small incremental in pursing knowledge is very hard to add when the cup is nearing full!



Thursday, 27 October 2016

The Difference Between Smart Financial Advice and Smart Financial Advice For You


Read? The Difference Between Smart Financial Advice and Smart Financial Advice For You


Uncle8888 fully agreed on the difference!

Be very careful what you are reading on issues or topics relating to our personal finance and investment.


Read? Why you may not be sufficiently prepared for retirement (2)


Same like smart financial advice on SRS, SA Top up, and Transfer CPF OA to SA advocated by mainstream's loud voices. All these are definitely smart financial advice on tax saving and compounding and ready for FUTURE retirement benefits.


Really smart financial advice for YOU based on your own financial capability and level?

Lacking of empathy in some blog posts is quite clear?

Small Thin Wallet cannot fit into Fat Big Purse's shoe.

Married late with two or more young children can NEVER fit into Single-hood's shoe.


Our worries will largely depend on the number of dependents we have as we married and have children. We want to provide them a better life. Right?






Do We Really Get Busy To Pass Time With Some Jobs or Go Free and Easy Pass Time With Pastime???



So far this is the common response when they heard that Uncle8888 has retired from his job and PASS TIME with his PASTIME which is currently is walking here and there and taking MRT and bus rides visiting here and there. 

They claimed that it is too boring and not sustainable. They won't want to do it any sooner! How can not doing any job to pass time?

They feel that when they have lots of free time; they will find it very hard to pass time without getting busy on some jobs.

May be one month is too short. Let review this topic again on  1 Sep 2017.


Do We Really Get Busy To Pass Time With Some Jobs

or 

Go Free and Easy Pass Time With Pastime?


Do We Really Get Busy To Pass Time With Some Jobs or Go Free and Easy Pass Time With Pastime???



So far this is the common response when they heard that Uncle8888 has retired from his job and PASS TIME with his PASTIME which is currently is walking here and there and taking MRT and bus rides visiting here and there. 

They claimed that it is too boring and not sustainable. They won't want to do it any sooner! How can not doing any job?


They feel that when they have lots of free time; they will find it very hard to pass time without getting busy on some jobs.

May be one month is too short. Let review this topic again on  1 Sep 2017.


Do We Really Get Busy To Pass Time With Some Jobs

or 

Go Free and Easy Pass Time With Pastime?


On Blog Leave From 30 Oct to 7 Nov 16 - Taiwan Round 3




Wednesday, 26 October 2016

Financial Freedom = Annual Dividend Income > Expenses???


Every time when Uncle8888 read this formula shared in the cyber world by the someone. He will shake his head! It is unbelievable simplistic.

Financial Independence is NOT based on a simple formula like that.

You think it is like TV Ads on Visa Pay wave Uncle said it : "So simple!"

Financial Independence is about choosing one of those financial models on assets and cash flow and then simulate it for sustainable retirement income for life and factoring future inflation and building up some buffer and determine what is the asset of last resort when retirement planning failed badly. In short; it based on modelling and not a simple formula with no simulation.

Don't ever believe that our current dividend income is sustainable over future market cycles and economics cycle. 

Think for yourself! 

How can it be?


Uncle8888 used his Three Taps solution model. He has simulated many times till 2016 and then only he felt that it is alright to go for it!



Tuesday, 25 October 2016

Market Timing and "In Investing, your account size really matters"


Read? No Time To Learn Investing (Analyzing Companies). How???

Less Analyzing. More Investing - Createwealth8888

In Investing, your account size really matters - Createwealth8888



Hey, Uncle8888; you got any proof or evidence of  what you are saying?


See closely!

What did you see?










Positioning Size and Risk Comfort Level Where Successful Retail Investors Don't See Eye To Eye To Successful Retail Traders


Read? Cut Losses Where Successful Investors Don't See Eye To Eye To Successful Traders


Real People. Real Story!


Upon a time; there were two men from time to time when they have the opportunity they would poke each other over trading and investing. 

One man was the late known "Guru" who has avoided to answer even simple question of Yes or No by stating the fact that even audited companies could hide frauds and not detected. In another word; even audited statements cannot be trusted. "Guru" has been advocating faith and trust and you need to believe! 

Trust since you can't really Verify! You can't!

The other man is still currently trading for a living.


One day; late "Guru" poked back with a good response.

Positioning Size and Risk Comfort Level

Guru : When I have full conviction over one company; I dare to build up positions up to 5 to 10% of my net worth. In your trading; you dare or not?


Uncle8888 fully agreed with Guru!


Successful retail investors can have very high level of risk comfort when they see opportunity and seize them; but successful traders will have to fall back to their risk control and risk management even they have full conviction. 

How many successful retail traders dare to build up their positions to 5 to 10% of their net worth?

That is the difference between retail trading and retail investing. 

Right?






Monday, 24 October 2016

Round The Coast (ACCESSIBLE) Of Singapore Walking Trail (LAST ROUND)


Read? Round The Coast (ACCESSIBLE) Of Singapore Walking Trail (7)


Uncle8888 today has completed his round the coast (accessible) of Singapore walking trail.


With completion of this walking trail:

(1) He has walked across all rivers in Singapore

(2) He has visited all public Ferry Terminals and Jetties

(3) He has walked ACROSS three small islands that part of Singapore.
































What was I thinking and feeling in Mar 2009 Bear market low? - Good to Refesh


Saturday, 14 April 2012

Read? What was I thinking and feeling in Mar 2009 Bear market low?



Saturday, 28 March 2009, I wrote this post:

One honest Guru said that (but still many gurus are not telling us much about their losses in shorting the market), he gave back most of his profits built up from the last plunge.

This Guru was not any ordinary trader but the Chief Trainer and Strategist in one of the Kung Fu School of Trading in Singapore hor.


CW8888: "Guru" after "Guru" will continue. New retail traders and Chartists are born every other day.



Cut Losses Where Successful Investors Don't See Eye To Eye To Successful Traders

So you are a retail trader?

How about these wise words?

Markets are actually set up so that most traders must lose money” 

― Alexander Elder, Trading for a Living: Psychology, Trading Tactics, Money Management

The Elder Method

Dr Elder uses a money management (position size) algorithm based on 2% of trading capital. 

Dr Elder's 6% rule is that you can only lose 6% of your trading capital in a month. So, you add up what you have already lost and the risks on your open positions and once they reach 6% you cannot take any more trades in the month until one of your open positions moves higher so that you can raise your stop-loss level or you take some profits.

Once you have lost 6% in a month in actual losses, you must stop trading.

- Dr Elder's book Come Into my Trading Room.


Losing money is the least of my troubles. A loss never troubles me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does the damage to the pocket book and to the soul.” - Jesse Livermore


So you are a retail investor?

How about these wise words?

All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out. - Peter Lynch


What about Uncle8888?

So far so good. He is on track to become successful retail investor by Peter Lych's wise words.

That right. With his two big winners and the pluses from those have overwhelm the minuses from the stocks don't work out. The Hallmark for a lifetime of successful investing.








What is this difference to lay man deciding to become lifetime retail trader or investor?


In trading; you are playing Winning the Losers Game to become successful traders with control over their Entries and Exits; but in lifetime investing; successful investors are playing Winning the Earning Game. They let the Management and their Staff do the heavy lifting while these successful investors may sit back and relax. These companies are giving them back part earning and retain the rest of their earning to grow, evolve, innovate, differentiate and diversify or scale up horizontally and vertically.

In real world, real economy,  some will become great; some will remain great; some will become greater; some just so so and some will eventually disappear.


All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out. - Peter Lynch

Get it?



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