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.

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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

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.

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