Chop Fingers liao!!! (2)

Read? HONOURING THE “MERDEKA GENERATION”

Read? Chop Fingers liao!!!

Pioneer Generation and Mederka Generation - Their CPF for retirement?

Many Pioneer generation didn't have much in their CPF due to the nature of job compensation package during their time.

Many in Mederka Generation have lost money in their CPF account during AFC 1998 as the crisis hit them really hard on their face. 

HDB housing was cheap so more paper money was available for investing but locked in CPF till 55! 

Why not hoot them all in the stock market and become rich!

It is stupid not to hoot! Right?

The Government didn't have wisdom or foresight to protect Mederka generation from losing too much money in their CPF during AFC.

After AFC, many had chopped their fingers and never touch the stock market ever again.

Again, the Mederka generation got caught in their HDB asset enhancement dream! Property sure huat!

Many have become "asset" rich and cash poor; but only those lucky few will truly become rich cash from SERS; and the rest of them will just receive consolation money from VERS.

This is how Mederka generation may pass their life journey from here onward!

Chop Fingers liao!!!

Read? Six Zero Beggars???

Uncle8888 continues to probe for real people, real retail trader/investor around his workplace (a large herd of zebras)

He sees how to get those white hair zebras to open up and talk about their past trading/investing experience.

He is 59+ this year!

He has chopped his fingers few year after AFC as he could no longer take more nagging from his wife for his heavy losses in CPF OA and putting their retirement life at risk (prior to AFC, Govt never control the money in CPF OA for investing/trading/punting)
 
E.g. He lost heavily in heavy-weight stocks like NOL, ST Assembly, UOBKayHian, etc

He made some money in SIA, MCL, OCBC, etc

He is still holding on to his old socks; but gave up hope of seeing any recovery. 

Don't think. Can already!

Do You Know Any Mederka Generation Relatives Who Don't Talk About Market Any More???

You won't know this through investment forums and FB investing groups e.g. BIGS World 

Those big losers won't go to such forums or FB investing to share their huge losses and lost so much until they have chopped fingers. After that they become faithfully savers. Losing to future years of inflation is far less painful! 

Read? Chop fingers

Talk to your mederka relatives this CNY and find out more and share!

Time, Leverage, and Currency Rate (Refresh)

Saturday, 17 April 2010
Read on reflection after GFC? Time, Leverage, and Currency Rate

Read? Beware the so-called Investment Gurus of SG


It’s not just gold

Now, before anyone thinks that this is a post against gold, let me throw in another example of a mistake when ignoring foreign currency flucuations.

Some years ago (roughly, 6-7 years if my memory serves me correctly), the local banks were encouraging many retail investors to take advantage of higher interest rates in countries such as Australia and New Zealand.

The basic idea was to convert your SGD to the either the Australian (AUD) or New Zealand (NZD) dollar, deposit it in a time-deposit in the banks there and earn the higher interest rates there.

Unfortunately, someone forgot to tell these investors that there is something called ‘Interest Rate Parity’. 1 AUD then used to trade for around 1.3 SGD but alas, now the almighty AUD trades for slightly less than 1 SGD. What seemed like an additional 4-5% return a year basically got negated by the 30% hit in currency terms.

It’s very basic but investors sometimes forget that (a) inflation matters, (b) transaction costs matter, and (c) local currency matters.


Walau!

After donkey years; the above post may have reminded some Merdeka and Pioneer folks how silly at that time when there was no Internet and they were blindly following the Crowd of the Day to the banks!

Uncle8888 learnt hard lesson on Currency Risk and chopped fingers. Those days FD in New Zealand banks could earn as high 10 to 12% on 2 to 3 years Fixed Deposits.

After 3-yrs FD maturity and NZD-SGD crash; Uncle8888 took his money back on NEGATIVE interest rate after currency conversion from NZD to SGD!

Chop fingers! 

Did your parents or grand-parents also kena but diam diam?

LOL!

Compounding And Leverage Work In Your Favour!

If you have spent enough time reading in the investment blogosphere; you will come across writings by those with commercially vested interests telling you these two words : compounding and leverage.


(1) The key is to start early and let compounding work in your favour to meet ...... (FI, FIRE or Retire)


(2) If your unleveraged portfolio is insufficient for ....(whatever); then go and leverage up your portfolio to meet it.


Compounding And Leverage Work In Your Favour???

What they will never tell you?

You can compound negatively in your investment until you feel so painfully and chop fingers and never ever again! 

Check with your Merdeka generation relatives! 

Government also learnt this lesson of letting Singaporeans buying discounted SingTel shares as part of wealth sharing of national assets. 

Why discounted SingTel share is the FIRST and the LAST?

Government chopped fingers???

Never ever again! 

Leverage is a double edged sword! 

Can be seriously NEGATIVE too!

Without leverage; you can be poorer by losing what you have put it; but you won't be made bankrupt by your bankers or brokers!

I won't make the same MISTAKE

During the lunch break, one guy wearing a T-shirt with his back facing me with the words "I won't make the same MISTAKE" sitting directly opposite my table.

Hey, it is disturbing and reminding me of the repeated mistakes that I have made that leading to big losses in 2008. I have already chopped off all the five fingers on the left hand. Any more same mistake, I got to chop off the toes now as I can't probably chop off the fingers on the right hand while still holding a chopper.

Really no more same MISTAKE!!! Cheers.

Kep Corp : Buy high on hope and sell low on chop fingers???

Read? Kep Corp : Bought @ $5.67 for Round 96

Hey! Did you lose money in the stock market?

Just for Laugh ...

Hey! Did you lose money in the stock market trading XXXX?

A: No lah, I lost little bit nia but quit liao!

B: Damn jialiat man, chop fingers liao!

C: (I or) My student has made $X,XXX in 3 days hor in trading XXXX!

Who do you believe? A, B or C? Who is likely to tell the truth?

Your answer will be the moral of the question. So what is the moral? hee hee!

Maximizing Your CPF For Retirement Is So Much Easier Than Trying To Optimize Your CPF For Retirement

Read? Top Up CPF SA From CPF OA? Depending On Who You Ask! (10)


The original topic for the talk was Maximizing Your CPF OA For Retirement when Uncle8888 was first approached by organizer to join the talk as speaker. Uncle8888 immediately rejected it as he was the wrong person for this topic.

How difficult can it be for anyone who has some truly spare cash on hand to maximise his CPF for retirement?

To optimize CPF for retirement through CPFIS is totally different ball game! 

It is never easy!

In Singapore's investment blogopshere with so many investment and personal financial bloggers; how many blog posts have you came across on CPFIS investment stories.

Read? One Uncommon Way To Top Up CPF OA Through CPFIS


Maximizing your CPF for retirement is safer, easier and trusted way to do it and big daddy has already learned from their past mistake with Mederka Generation and will not repeat the same mistake to future generations.


Read? Chop Fingers liao!!! (2)



Let maximize our CPF for retirement

1. Transfer CPF OA to SA to meet FRS sooner and let the magic of compounding interests of 4% works wonder for us

2. Voluntarily top up CPF with our spare cash






To optimize?

It goes far beyond your savings skill!

In fact; it can be bloody experience!

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

What Is The Real Cause Of Low CPF Payout In Some Mederka Generation???

Read? Josephine Teo’s data of Singapore Elderly’s Low CPF Payout is Depressing. Still, it meets the CPF’s Expectations of how much in our CPF we Should have


Hmm ...

Read? Chop Fingers liao!!! (2)

Read? More posts related to AFC

Does Investing Young In The Market Made Us Investors???

Ask those old folks in their late 50s and early 60s; did they started investing when they were young in their 20s and 30s?


Read? Chop Fingers liao!!!

Read? Six Zero Beggars???

Read? Does Experience With Past Market Cycles Made Us Wiser and Profitable???

Read? Confession of old timer in the market!


Now, who are not interested in investing?

Read?  Investing CPF funds to provide adequate retirement funding???

Our brokers are watching us and will be very scared when market crashes

Read? Contra Trading. Damn Shiok!!! (2) - Refresh


hyom hyom

9:52 AM (8 minutes ago)

to me 

hyom hyom has left a new comment on the post "How you know you no longer Bei Kambing?": 

Hi Jared,

If a person is a bei kambing and knows he is a bei kambing in certain products, that is enlightenment. In trading/investing, that is a big time saver and money saver. 

To be honest, I do not have the balls to trade bitcoin. It can fall 20% within a day. Imagine someone trading leveraged bitcoin futures last week. Futures keep halting due to limit-down. Even popular bitcoin exchanges like coinbase halted trading due to massive panic selling. The wait to get out will be a torture. Don't say only I scared. I think even the broker will be scared.


Uncle8888 is not into contra trading anymore. Chop fingers liao!

One morning when market seriously gap down; his broker called him in the morning to remind him of his outstanding positions to pay up or close by 5 PM or he would force SELL the next morning when market opened.

His broker called him again at 4 pm to repeat reminder!

If your brokers are not scare or worry; it may mean your positions are not large enough! Fact of life as traders!

My Life Journey So Far At One Quick Glance On Mar 2019

My Family 

My Human Asset : Self and career development and dead wood!

My path to pursue financial independence and having option to retire @ 60 from full-time job as employee

My current Net Worth as presented in Three Taps Model solution model. It covers basic retirement planning issues on liquidity, longevity and legacy.

Liquidity : Two years cash reserve in bank for 2019/2020

Longevity : Tap 1 and Tap 2 which are non market volatile fixed assets.

Legacy : Tap 3 which is investment portfolio which is very volatile across future market cycles. 

My current cash flow to fund annual household expenses

Is money enough?

STI since the day I have started serious learning and investing on Jan 2000 to pursue financial independence through short-term trading and long-term investing.

Alamak!

Started investing at the peak of Dotcom Bubble. Wrong market timing!

More capital into the market. More paper losses. Dividends are just Panadols!

My Investment portfolio performance across market cycles since Jan 2000

Any paper gains are an illusion of wealth in the market; but any paper losses can be real losses!

Paper losses become real losses when your losing stocks are suspended, bankrupted and de-listed. You lost 100% of your invested capital. In the other case; your losing stocks are taken private and de-listed; your paper losses become realized losses!

Beware!

Your money management skill through market cycles is the one that can save you from wealth destruction and chop fingers!

So far since Jan 2000, I have three zero baggers which lost 100% of invested capital! 

Why? No stop loss!


Top winners to top losers

Lynch provides insight on how to achieve exceptional results

In an interview he gave to PBS, Peter Lynch discussed what is needed to achieve a track record similar to his. Even though the answer seems simple on the surface, it has many insights that are worth commenting on.

Q: Was that your secret?

A: Well, I think the secret is, if you have a lot of stocks, some will do mediocre, some will do OK, and if one or two of 'em go up big time, you produce a fabulous result. And I think that's the promise to some people. Some stocks go up 20% to 30%, and they get rid of it, and they hold on to the dogs. And it's sort of like watering the weeds and cutting out the flowers. You want to let the winners run. 

When the fun ones get better, add to 'em, and that one winner, you basically see a few stocks in your lifetime, that's all you need. I mean stocks are out there. When I ran Magellan, I wrote a book. I think I listed over 100 stocks that went up over tenfold when I ran Magellan, and I owned thousands of stocks. I owned none of these stocks. I missed every one of these stocks that went up over tenfold. I didn't own a share of them. And I still managed to do well with Magellan. So there's lots of stocks out there and all you need is a few of 'em. So that's been my philosophy. You have to let the big ones make up for your mistakes.

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

No of winning stock pick : 30

No of losing stock pick     : 26

Winners/ Losers ratio = 30 / 26 = 1.2

Such lousy stock picker! How come didn't lose money?

Total Winning $ / Total Losing $ ratio = 2.1

Save more than 60%. No need to invest??? (2)

Read? Save more than 60%. No need to invest???

After hearing someone with $5.2M and lost $1m punting in the stock market; she is not wrong in not investing as she had enough to retire with an asset draw down strategy.

How many of us actually feel the sharp pain of inflation impact?

Likely, most of us will get over the price hike after a few rounds of purchase.

Do you feel painful when you eat $3 chicken rice now?



But, when you lost large sum of money, it can be painful for many years whenever you think of it. Some even chop fingers and never ever touch it again!
 

 

Pre-AFC Nothing Could Gone Wrong. Hoot Tua Tua or Supercharge Your Leverage!!!

May be many folks are too young to know what has happened during pre-AFC days of leverages, margins and CPFIS. 

It was those period at your own time, own target and fired. Even Big Daddy caught sleeping with CPFIS!

How could brokers went bankrupt when Parliament was debating on brokers earning higher pay than Ministers?

One broker jumped from Shenton Way's high building!


How could DBS fail?

One secondary principal did home mortgage to supercharge his investment in DBS. Hoot tua tua. Never waste a crisis. But; DBS kept going down and he went bankrupt. He lost his landed property and lost his job too!


Folks like Uncle8888 who lived through AFC and seeing one of his own relatives nearly bankrupt to shares financing - pledge your shares to supercharge and pledge new shares and re-supercharge. Hoot tua tua! So many doing it! Why scare?

In Chinese saying. Lose until mad! Hard to understand why?

When folks become mad after losing too much; what is risk management?

They only just want to to recover their large losses and then chop fingers. They promise!

Yes. DBS didn't bankrupt.; but principal did!

We are shaped on what we went through!

Why Uncle8888 is like that?

Does Experience With Past Market Cycles Made Us Wiser and Profitable???

Uncle8888 has been probing those white-hair Zebras around in his office; but his probing results didn't show that experience with past market cycles made us wiser and profitable. Once we were badly burnt; we are likely to chop our fingers and stay away from the market.


He is 55+. He couldn't meet his CPF Minimum Sum so his 5-Rm HDB flat was automatically pledged.

He confessed he lost heavily during AFC and especially in CLOB saga.

He still remember those days of just watching TeleText and made easy money doing active contra trading. 

One particular stock, he could remember so well - Van Horst. (Oldies may know this stock). He "contra-ed" for seven times in one week and made lots of money.

In pre-AFC days, CPF members could draw out their profits to spend; but losses were retained in their CPF investment account. This was how CPF members hold on their losses but spent away their profits on expenses. Shiok?


Read? In Investing, ACCOUNT SIZE really MATTERS! Why???


Read? What was I thinking and feeling in Mar 2009 Bear market low? (2) - Re-posted



Createwealth8888 till today can still remember clearly when two very experienced cyber investing kakis in the stock market who believed in their favourite and trusted Guru's view in Mar 2009 were congratulating themselves for staying very cash rich in Mar 2009. One was 90% cash and the other 100% cash!!!