I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



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

Showing posts with label Education - Trading - Style. Show all posts
Showing posts with label Education - Trading - Style. Show all posts

Friday, 20 June 2014

Follow the right person? - Re-visit


Read?  Follow the right person?



You came.


You read.


But, do you believe it?



Tuesday, 19 June 2012

How to be richer than your boss?

Watch video? How to be richer than your boss?

Are you impressed???

Negative Demo!!!

Right?

Read? I want to be richer but .... (2)


Saturday, 11 February 2012

Fishing and Stock Market (4)

Read? Fishing and Stock Market - III

Why gone fishing is a good retreat for your investing skills?

Patience

You learn to be patient. You can only wait and wait for the moment of happiness to happen right in front of your eyes and you grab it with both hands.

Control

You learn that you have absolutely no control in the market (sea). You can't see anything under the sea whether there are fishes (opportunities) coming soon or obstacles (risks) lying there waiting to break your lines. You learn to let go your ideas that you are in control and let the market (sea) do what it needs to do.

Risks

You can take lower risks by catching ikan kunings and tambans by the quayside or take higher risks by fishing in the deeper water for biggies but they may break your lines.




Tuesday, 1 November 2011

Master the Art of Formless Form - The Greatest of All Kung Fu in Investing (2)

Read? Master the Art of Formless Form - The Greatest of All Kung Fu in Investing

How do I master Formless Form?

From Wuxiapedia


Let us continue the story ...

Dugu Qiubai's Martial Arts Philosophy


In his Sword Tomb, it is stated:


"The Demonic Swordsman Dugu Qiubai has become the invincible and unchallenged warrior under Heaven, he therefore buried his swords here. Alas, the heroes of the realm bowed down before me, now my long sword is of no use anymore... the agony!"

"Fierce and aggressive, able to penetrate every obstacle. With it, I competed with the heroes of the Northern Plains during my teenage years."

"The Violet Flexible Sword, used it prior to the age of thirty. I accidentally wounded a righteous man with it, it turned out to be a Weapon of Doom. I felt great remorse and abandoned the sword in a deep valley."

"The Heavy, Blunt Sword, complexity is useless. Before I reached the age of forty, I used it to roam the entire Empire under Heaven."

"After the age of forty, I no longer relied on weaponry. Trees, bamboo and rock can all be my swords. From then on, the essence of my cultivation slowly reached the level of overcoming the sword without a sword."

Dugu Nine Swords favors formlessness so that it can assume all forms and, since it has no style, Dugu Nine Swords uses all ways and is bound by none and, likewise, uses any techniques or means which serves its end. In this art, efficiency is anything that scores. (Createwealth8888: Your XIRR or CAGR that matters the most and not the form i.e. your method. Efficiency and productivity of your capital)


Expression is not developed through the practice of form, yet form is a part of expression. The greater (expression) is not found in the lesser (expression) but the lesser is found within the greater. Having "no form", then, does not mean having no "form". Having "no form" evolves from having form. "No form" is the higher, individual expression.

In Dugu Nine Swords, all technique is to be forgotten and the unconscious is to be left alone to handle the situation. The technique will assert its wonders automatically or spontaneously. To float in totality, to have no technique, is to have all technique.

The Moral of the Story

Here the bad news!

There is no short cut to master Formless Form. You have to work on it for many years to transform from Form to Formless Form.

In my own personal experience, I have spent many years reading tons of TA books learning from Dr A, Mr B and Guru C and tested many TA indicators, ABC here and ABC there, double screen here and triple screen there all with real money and real trades. I realized all these Form doesn't work for me as I was still losing money. Finally, I gave up and forget all of them. Now I do it without any TA indicators. When I see. I like. I do it.

Monday, 31 October 2011

Master the Art of Formless Form - The Greatest of All Kung Fu in Investing

Read? Fundamental or Technical Analysis? (4)

Read? Investing vs Trading (4) - Two great attributes of long-term investors

Read? master the act of "formless form"

"Too much TA and FA will confuse your mind. Master the Act of the Formless From, you be there sooner than later." - Createwealth8888

"Less Analyzing. More Investing." - Createwealth8888

Master the Art of Formless Form

From Wixiapedia

倚天屠龙记


Zhang Sanfeng asks:” son, do you clear?" Zhang Wuji says:” I’m Clear." Zhang Sanfeng asks:” Do you totally remember it?" Zhang Wuji says: “Already forgotten some." Zhang Sanfeng says:” That’s ok, think it over"

Zhang Wuji low his head and fall in pondering. A while latter, Zhang Sanfeng asks:” How about it now?" Zhang Wuji says:” I forget most of it" Zhang Sanfeng smiles and says:” Very well. Let me show it to you again" He raises his sword and plays the exercise series again.

But to everyone's surprise, every pose of this time is different to last time's. When he finished, he asks again:” Son, how about it then"? Zhang Wuji says:” I have only three actions unforgotten". Zhang Sanfeng nods, puts his sword down and returns to his seat.

Zhang Wuji walks slowly in the hall and ponders. Then, he raise his head and cries joyfully:” I forget it, forget it totally!" Zhang Sanfeng says:” Not bad, Not bad, you do pretty well to forget it so quickly. Now, you can fighting it against this skillful master"

The moral of the story

When rules of the stock market are not set and defined, there is no way to know what it is so we have to master the Art of  Formless Form. When we cling to the form, there will be attachment of the mind to this form. You will not be able to see your true self..


So the Art of Formless Form is not based on specific techniques of TA or FA or both. It is just as who you are. You and you alone can master it! Like Zhang Wuji, you need to forget first!








Saturday, 22 October 2011

I know what I don’t know!


Read? I don’t know what I don’t know

In investing or trading, some people know what they don't know; but believe some people know what they don't know.

For example, I heard someone saying that his broker is good as he sent him some TA charts with some views.

Actually, when you go around visiting investment, finance and trading blogs you will see lots of charts with convincing views presented in these blogs. They know what you don't know??? Don't be foolish to believe it. They are probably like you; they don't know what they don't know and act like they know.

BTW, you don't need to have high IQ to do TA charting and present views or give 5 pointers. Anyone after seriously read a few TA books should to be able produce decent TA chart and present their views. It is not rocket science!

I believe the most honest answer came from one Head of Research from XXX Securities at investment seminar after been scolded by an old man for causing him to lose money following her calls for years. She replied something like this: "If I really know; I won't be standing here giving stock view."

Yes. That is absolutely true. She knows what she knows. She doesn't know what she doesn't know. But, some people like to believe what they hear and read and foolishly think that they know what we don't know.

You don't know what I am saying??? hee hee!



I don’t know what I don’t know

Read? Gambling - investment - speculation

Read? Known and Unknown?

In the stock market, instead of admitting that "I don’t know what I don’t know ", we turn it into "I think I know something that others don't know." That is speculation!

Investors or traders are all speculating at different levels using different method. Traders use charts to speculate. Investors use corporate and financial data to speculate. Basically, both traders and investors ultimately speculate on just two things: future earning and/or future cash back to shareholders.

Future Earning

There is no absolute certainty in knowing future corporate earning as there are just too many moving parts in them. We are just speculating on their future earning whether it is sustainable, growing or weakening.

Future cash back to shareholders

Investors and traders also speculate on future cash back to shareholders in form of stock dividends, special dividends, share buy-back, privatisation at premium. Just start a big rumor on any of these, the traders will jump in a big way.

In the stock market, all of us speculate!





Tuesday, 21 June 2011

How do you navigate in the stock market?


Following someone?

1. Following someone

You navigate in the stock market by listening to stock analysts and brokers; or you follow your favourite investment bloggers; or you follow the loudest and the most convincing chatters in cboxes or forums; or you follow the flavour of the day in cboxes or forums.



GPS Navigator

2. GPS Navigator

You swear that you have found the best GPS Navigator in technical analysis; but there are two ways to use it. 

You trust 100% the accuracy of its signal. When the GPS Navigator says Right you keep right and turns. When it says Left, you keep left and turns.

But, you found out the "RIGHT' way to use it. When the GPS Navigator says Right you keep right and turns. When it says Left, then you argue with it. It is not the 'RIGHT' way to turn. There is no Left turn hor! 



Map and a Travel Plan

3. Map and a Travel Plan

You have a Map on hand and have a Travel Plan of where you want to go. You study the map carefully and plan your route. But, there are many times you simply lost your way. You got stuck. You waste time by studying the map again and again trying to pick the next 'Right' route to continue your journey.

 
So how do you navigate in the stock market?

Createwealth8888 navigates in the stock market with a Map and a 10 years Travel Plan; but he will revise his Travel Plan again on 1 Jan 2012.

Sunday, 19 June 2011

Help me! I am still losing money in my Investment Quadrant (6)

Read? Help me! I am still losing money in my Investment Quadrant (5)

What do I expect to see from some not-so-successful retail investor's portfolio?

I don't be surprised to see that their top losers are also their top holdings. Why?

Probably, They love to play Winning the Loser's Game and the losses became too huge and too painful and emotional to cut losses. They may have little choice but start fooling themselves into getting Discounts and taking Pain Killers

One way to help yourself is to stop playing "Winning the Loser's Game"; but can you really stop it?

Sunday, 3 April 2011

Hey! What type of investors are you? (2)

Read? Hey! What type of investors are you?

KY said: "I have read most of Robert's books, Alexander Elder's, abit on trading psychology, abit of money management and some finance books from NLB on trading. After a while, the books seems to converge and did not solve some of my doubts namely timing and methodologies."


I absolutely agreed with KY on "After a while, the books seems to converge."  and I have no doubt about it. This is not the first time that I heard someone commented about it and it won't be the last too,
 
Why am I still reading more such books?
 
I didn't read more books to look for more superior/advance technical analysis, better/more winning methodologies, more/better technical indicators, more charting patterns; and etc.
 
I am reading for one or two new ideas from the authors on their thoughts on investing and trading; and not particularly on their trading methods as I don't follow any Guru's trading system. I don't even use any technical indicators with adjustable parameters. I only have lizard brain so it is not good enough to fully understand and use these popular trading systems or methodologies effectively to make money from the stock market.
 
Actually, I use simple fisherman's methodology - Tide Cycles (i.e. Market Cycles) as I love fishing as hobby.

It has worked for me so far and I also realized that those who are less fearful and more patient with better money and risks management are more likely to win over several market cycles.
 
So does more stock anlaysis help? I don't think so. More stock analysis may not actually help you to win more. There is no Holy Grail in the stock market; but there will be plenty of them as advertised in the newspapers. Later, I will read thesundaytimes papers to see any new Holy Grail. LOL!
 
"Less Analyzing and More Investing is the way to win over market cycles." - Createwealth8888

Saturday, 2 April 2011

Help me! I am still losing money in my Investment Quadrant (5)

"Sometime we may learn from other people's experiences but at times we may have to re-look at our own experiences and learn from them as well." - Createwealth8888.


Read? Help me! I am still losing money in my Investment Quadrant - Part 4

Real People and Reality of Trading


I think I have shared enough of my personal experiences on reality of trading and investing. May be it is good to share one reader's experience and the reality of trading so that newbies can sit up and seriously think about it.

KY in his email to me: "I began my investing journey in 1998 back in the days when CLOB is still ard and am very young. Thus I believe went thru 3 cycles. after HK, dot com, asia finance, asia flu and usa finance."

and he still lose big money after spending years across market cycles. What is really missing?

Read? Articles related to investor overconfidence - This is a real killer to your limited investing capital

I believe he is like some investors/traders are killed by Averaging Down strategy. I have been killed before using Averaging Down strategy; but now I only use Averaging In because ..

"We don't need to win back in the same manner that we have lost it " - Createwealth8888.


Like another reader, CH; I hope that after a series of emails with KY, he may be able to revise his own strategy to win back; but in a different manner to regain his confidence but not overconfidence. This one can really kill!
 
"Insanity: doing the same thing over and over again and expecting different results" - Albert Einstein

Saturday, 20 November 2010

Long-term investing and short-term trading? (2)

Read? Long-term investing and short-term trading?


What does the Market say about long-term investing?

Can long-term investing still be rewarding even with dividends accumulation?


Friday, 19 November 2010

Long-term investing and short-term trading?

What do I mean by long-term investing and short-term trading?

The same counter can be for long-term investing and short-term trading. Why not?

Some examples:

Long-term investing

  • The oldest stock position that I am still holding since 2001 is Kep Corp. At today closing price, it is a 6.5 baggers.
  • The newest stock position that I am still holding since 2008 is Noble. At today closing price, it is a 2 baggers.
Short-term trading


      Sunday, 31 October 2010

      Would you buy it now?

      Read CJ on Trading Mentality?

      The mind boggling question now is "You wanted to buy this company at a target price of $0.90 and today's at $1. Tomorrow the moment the market open, its at $0.90 cents, a total 10% drop in share price, could be due to weak market sentiments or due to bad fundamental results released.

      Would you buy it now?"

      Who are you in the stock market?

      ***Always remember that when a transaction is completed there is buyer/buyers and seller/sellers of different views. At the time of transction, who is right or who is wrong is still uncertain?

      1. A disciplined Trader?

      2. A confident Investor?

      3. An emotional Trader or Investor?

      Who will not dare to buy after seeing 10% drop in share price when market open?

      A disciplined Trader?

      He/she will either long or short it.

      A confident Investor?

      He/she will buy as the margin of safety is even better before price drop.

      An emotional Trader or Investor?















      Sunday, 24 October 2010

      Harsh lessons from 1997/98 and 2007/08 stock crisis


      Fortunately, my cautious approach to the stock market is shaped by my relatives' serious investment failure (One of them almost bankrupt) during Asian stock crisis in 1997/98 and especially CLOB saga and Currencies crisis that leaded me to focus only in local stock market to eliminate the forex and foreign monetary policy risks.

      And 2007/08 Sub-prime crisis has further shaped me to believe that the following approaches may not be right for me:

      • Aggressive "Averaging Down" in a falling market can be a double-edged sword as there is no way to tell that the market is just pulling back, correcting or heading towards the next stock crisis.
      • Leveraging can force me into really weak spot and cut losses at the worst time. 
      • Stocks with weak sponsorship or owners are to be avoided as they are less able to raise massive Right Issues to strengthen up their balance sheet to survive or to seek investment opportunities.
      •  

      Sunday, 10 October 2010

      Follow the right person?

      Read?Your First $100K realized profit from the stock market? - (2)

      Super Mum once mentioned that she has "Huat" (successful) in her investing journey because she follows the right person. The Right person? I didn't think so. What I did know that she didn't really follow anybody; but I think she probably did one thing that leads her to success i.e.

      She CAME, HEARD IT, SAW IT and BELIEVE IT!

      Similarly, Piggy came for an answer - HEARD IT and BELIEVE IT! she is now happily loading up lorry load of "lunchboxes".


      Believe not?

      There are still some who choose not to believe it. If you believe you can't. You can't! (not the same as the other way round hor)

      Saturday, 9 October 2010

      I want to be richer but .... (2)

      Read? Self imposed limits: LP shares

      Read? I want to be richer but ....

      "I think for those who think they are not the privileged ones to save 500k, they should really scrutinize their limiting beliefs and break as many of them as possible. Test the limits of your boundary by taking small steps; you might find that these boundary cannot and will not restrict you if you do not wish them to do so." - LP

      "The journey will definitely be accompanied by naysayers. People who say it cannot be done should not interrupt those who are doing it." - LP

      Wise words. I think I should share it further ....  Concepts, Believe, and Goals

      Future Saving - Get Real!

      Unless you don't get married or get married but no kids or get married with only one kid; and besides that also don't get caught in between needy parents at the top and hungry kids at the bottom.

      I know what I am talking as I was there before with a single income to support a penniless father and a wife with three growing kids. More saving is practically out! As parents, we may find it extremely difficult to squeeze out expenses on our growing kids to increase savings.

      An alternative is to increase earning by:

      Look for a better paying job?
      Work harder like a Rat in the office to try to move up the corporate ladder?

      These are the options until one day I fully understood the Concepts.

      Understanding Concepts

      Read? Money Mind and mindset (Re-visit)

      Believe
       
      Read? Your First $100K realized profit from the stock market? - (2)

      Read? Earning More Than Your Boss?

      Read? Freedom at 44

      Read? Retire young, retire rich

      Unlike some of you, every month or at least every year you still have fresh capitals coming in for investment but I don't. I really have little fresh capital incoming in other than those coming from CPF investment account. So my only hope is to compound my gains in the stock market.

      Goals

      Not much use even if you can fully understand the concepts and strongly believe it but without setting realistic Goals and track it; it may be harder to make it!

      Read? Goals - Part 2

      Read? Your Personal Investment Goals

      Tuesday, 5 October 2010

      What if the next Great Bear come?

      Are multi-baggers safe from the next Great Bear Raid? Of course not!

      Let me share my observation of two guys who both have multi-bagger.

      Guy A holds a multi-bagger - Kepland. He is happily holding it and takes no further actions to strengthen the holding position.

      Guy B holds a multi-bagger - Midas. He is not just holding it; but whenever the market provides him opportunity he will trade some positions on Midas to build up realized profit against his holding position. Besides that he also have his capital reduction plan in place since he thinks that the market has already reached a high level.

      Do you think who is more at risks of either losing part of his capital or seeing his paper profit disappeared when the next Great Bear returns? Guy A or Guy B?

      I want to be richer but ....

      I want to be richer but ...

      • I also want to laze on weekends so the idea of earning more money by giving private tuitions and becoming part-time insurance and property agents are out.
      • I also don't like to join the rat-race in the office
      So how?

      I did this: Work for money? Forget it. - Revisit

      My money works harder for me.


      Powered by Bulls and provided by the Bears.



      Join me?

      Monday, 4 October 2010

      Retail investors set to make big comeback

      ST, Monday, Oct 4, 2010

      Some points to note ....

      • One dealer said in the past few weeks, he had been hit by a flood of phone calls and e-mail messages from clients wanting to reactivate their trading account.
      • The strategy they adopt is to buy shares each time there is market correction, and so far, it appears to be working.
      • It is very short term. Buy on dips and sell on strength. But it is good income for dealers, as the market volume swells.
      Party time! Welcome on board.

      Read? The Bandwagon Theory: A Glimpse At How The Market Really Works?

      See who jump off first?
      Related Posts with Thumbnails