Report card for 2007

- Nett realized profit of $134K for 2007
- Compounded return on capital plus past realized profit since 2003 = 30.2%

Performance update for year end 2007

Portfolio update - Bought SGX 13.12

Portfolio update - Bought SGX 13.4

Portfolio update - Contra Cosco, ROC 2.7%

Portfolio update - Contra off SGX. ROC 1.6%

Portfolio update - Bought Kep and SGX

Portfolio update - Bought Cosco and YZJ

Portfolio update - sold Kep, bought Cosco and YJZ

Portfolio update - sold STX and buy back STX

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

Portfolio update - Bought Hyflux, Contra Kep, SIA, NOL

Portfolio update - sold hyflux, bought kep & nol

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?

Portfolio update - bought STX 2.88

Portfolio update - sold F&N, bought STX, NOL

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!

Portfolio update - contra CDL, bought Hyflux

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.

Portfolio update - contra STX ROC 5.2% and 9.9%

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!

Portfolio update - bought more Kep and CPL

Portfolio update - bought CPL, STX

Portfolio update - bought kep, yongnam, sold sml

Portfolio update - bought DBS

Portfolio update - sold Kep, CPL, DBS

Portfolio update - contra YZJ ROC 5.3% in 3 days

Portfolio update - buy Kep, Yangzijiang

Portfolio update - add CDL and CPL

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.

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.

Portfolio update - contra Cosco. ROC 5.3%

Portfolio update - add FNLS (F&N), Yanlord

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.

Portfolio update - Buy CDL, Cosco, Yongnam

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!

Portfolio update - contra CDL, ROC 4.2% in 1 day

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.

Portfolio update - Bought CDL

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!

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.

Portfolio update - more trades, DBS, CDL

Portfolio update - more trades DBS, UOB, OCBC, Rotary

Sep 07 - End Game Goal update

Portfolio update - more trades done

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

Portfolio update - sold CDL, CPL, add DBS, SML, LBY

Portfolio update - sold KEP but add Labroy

Portfolio update - add KEP

Portfolio update

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.

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.