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.

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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.

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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

Friday, 17 July 2009

Time In The Market, or Timing The Market??

http://sgmusicwhiz.blogspot.com/ <-- If you may want to read MusicWhiz post on "Time In The Market, or Timing The Market". Quite a good debate happen there. Now, let me share my version on "Time In The Market or Timing The Market" ..

What is the primary reason to buy a stock?

. The stock is under-valued and offers good margin of safety
. The stock has incredible dividends for many years
. The stock has perfect technical entry
. blah ...

So are these really primary reason to buy a stock?

I don't think so. You buy the stock to make a reasonably high rate of return on capital (ROC) at an acceptable level of risk to you.

In simple words, the primary reason to buy a stock is to sell it.

Since I don't believe in STOP LOSS, the moment after I have bought a stock; it will spent its Time In The Market while I am Timing The Market to make a reasonably high rate of return on capital (ROC) to compensate me for taking the level of risk that is acceptable to me and I will be doing "Timing The Market" to buy the next stock. The cycle goes like this: Timing The Market ---> Time In The Market ---> Timing The Market --> Time In Then Market and so on .....

You may want to tell me your version of the story. Cheers!
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