- Nett realized profit of $134K for 2007
- Compounded return on capital plus past realized profit since 2003 = 30.2%
Monday 31 December 2007
Friday 28 December 2007
Wednesday 26 December 2007
Monday 24 December 2007
Sunday 23 December 2007
Tuesday 18 December 2007
Monday 17 December 2007
Wednesday 12 December 2007
Wednesday 5 December 2007
Monday 3 December 2007
Is the worst for STI over?
Nov 07 correction is the longest period of 42 days from the previous peak-to-low before rebounding. Historically, the month December is generally positive so Nov 07 probably would be the last crash for the year. Cheers
Friday 30 November 2007
Wednesday 28 November 2007
Saturday 24 November 2007
Will STI rally next week?
a) The Dow rose 181.84, or 1.42 percent, to 12,980.88, finishing at the highs of the session rather than losing steam in the final minutes as has occurred often in recent weeks.
b) FTSE has been up for two days. Friday up by 1.74%
c) Will STI rally next week?
Thursday 22 November 2007
Wednesday 21 November 2007
Portfolio update - contra loss on CPL
This is the third time this year that I have to take contra losses. Losing is part of winning. Cheers!
Sunday 18 November 2007
Wednesday 14 November 2007
Realized ROC reaches 100% in 5 years of active trading since 2003
Finally,the realized ROC has reached 100% in 5 years since I have started active trading.
Tuesday 13 November 2007
Expecting STI to rebound very soon, maybe tomorrow
STI has been overstaying in the down days for too long. If DOW rebound stronger tonight, I will expect STI to rally tomorrow. Cheer!
Saturday 10 November 2007
Thursday 8 November 2007
Tuesday 6 November 2007
Thursday 1 November 2007
Thursday 25 October 2007
Monday 22 October 2007
Tuesday 16 October 2007
Sunday 14 October 2007
Two cents’ worth: When embracing risk, volatility can pay well on the stock market
An article from Sunday Times 14 Oct 2007.
Some major ideas as follows:
• For long-term financial planning, one point to note is that, on average, over long periods of time, shares have outperformed cash and fixed interest investments by 5 percent to 7 per cent annually.
• While no one can predict the future, this basic relationship should continue to hold true for the next century, barring extreme events. The return above cash rate from shares is called the equity risk premium.
• The difference between success and failure is not how investment markets behave – we know generally they generally do well over the long term – but how investors behave.
• Research suggests that investors detest the way a loss makes them feel even more than they fear the loss itself. It appears the emotional distress they suffer can be detrimental as the financial loss itself. Taking investment risks involves accepting the possibility of making a loss and suffering regret when that happens. Risk-averse investors might avoid loss, but in doing so, they also lose the possibility of making significant gains.
• The time horizon is always an important factor to consider when making investment decisions.
Some major ideas as follows:
• For long-term financial planning, one point to note is that, on average, over long periods of time, shares have outperformed cash and fixed interest investments by 5 percent to 7 per cent annually.
• While no one can predict the future, this basic relationship should continue to hold true for the next century, barring extreme events. The return above cash rate from shares is called the equity risk premium.
• The difference between success and failure is not how investment markets behave – we know generally they generally do well over the long term – but how investors behave.
• Research suggests that investors detest the way a loss makes them feel even more than they fear the loss itself. It appears the emotional distress they suffer can be detrimental as the financial loss itself. Taking investment risks involves accepting the possibility of making a loss and suffering regret when that happens. Risk-averse investors might avoid loss, but in doing so, they also lose the possibility of making significant gains.
• The time horizon is always an important factor to consider when making investment decisions.
Saturday 13 October 2007
Risks vs Returns
One of my colleagues has been busy finding which bank offers the best FD rate; but, he was very disappointed as the best rate is only 1.88% with 6 months lock-in period.
I advised him to invest if the money is not meant for emergency use or short term.
However, investing involves risks, and not many people are willing to take higher risks, spent more time educating themselves on stock investing for better returns.
For many years, I have been like him; not willing to take higher risks as I have heard too many sad stories of how people got burnt when market crashed. I was fearful then. I put my money in FD for many years and wasted many of years of opportunity of growing wealth.
We must spent more time on financial education, monitor the market closely, and learn to take higher risks for better returns.
Looking back at the bold decision that I have taken in 2003 when I decided to take higher risks, spent more time educating myself on trading, and started active stocks trading.
See the above table for the result of returns vs FD rate.
Thursday 11 October 2007
Wednesday 10 October 2007
Monday 8 October 2007
Welcome CDL as 10th member of $10K Hall of Fame
CDL will be XD tomorrow and the dividends collected has enabled CDL to join as 10th member of More than $10K Hall of Fame.
Friday 5 October 2007
Portfolio update - Buy CDL, Sold LABS
I will need to do one more sale transaction for CDL to become a new member of More than $10K Hall of Fame. Cheers!
Thursday 4 October 2007
Wednesday 3 October 2007
Financial Independence through trading stocks
When I casually mention financial independence through trading stocks to friends, relatives and colleagues, they do not seem to believe that it is possible. Quite sad that I could not honestly tell them that I believe I am on target in 4 year time by Sep 2011.
Tuesday 2 October 2007
Portfolio update - Took some partial profit
STI so high!! It is time to take some partial profit and raise capital for the next battle. Market is always there!
Friday 28 September 2007
Sep 2007 Milestone update
Nett worth survived Aug 07 major correction, and now back to the previous high. Important lessons learnt as follows:
1) NEVER, NEVER touch profits. Re-invest these profits back into the market and let the magic of compounding works its wonder.
2) When the market dragged down those earlier high performance stocks, it is also time to look hard at our portfolio and sell those laggards, hit the bullet, take realized losses, and use the recovered capital to buy into those fallen stars and then wait for market recovery. This strategy worked well in both Feb 07 and Aug 07 crashes.
Thursday 27 September 2007
Monday 24 September 2007
Sunday 23 September 2007
Friday 21 September 2007
Saturday 15 September 2007
Investing Performance Update - revised presentation format
It is very important for me to keep my eyes on the ball at all times to achieve financial independence by Sep 2011 i.e. less than 4 years away.
There are two key targets that I would need to achieve by looking at this table:
1) To double the YTD ROC by Dec 2008
2) To achieve more than 19.2% in Yearly Compounded ROC by Dec 2007
Friday 14 September 2007
Thursday 13 September 2007
Wednesday 12 September 2007
Friday 7 September 2007
Wednesday 5 September 2007
Portfolio update
It is getting difficult to make money in current market condition. I am adopting hit-and-run strategy to avoid being caught in any major correction.
Monday 3 September 2007
Aug 07 - End Game Goal update
Now, I firmly believe the power of compounding by never withdrawing any profit. The sharp correction in Aug 07 has lesser impact on the overall value of the portfolio compared to the correction in Feb 07.