As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons 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.

Think Investing as Tug of War - Read more? Click and scroll down

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

Saturday, 8 January 2011

Portfolio Management - Measuring your success!

Read? Portfolio Management - Too much cash may become a problem (2)

How do you measure your investing success in the stock market?

First thing first, STOP doing this!

Momentarily in Agony over a losing stock? That is not a wise thing to do.

It is expected that most people are going to lose money in the stock market and may even lose big ones in their investing/trading life-cycle over multi-years of bulls and bears.

Yes, so far I have picked a few MULTI-BAGGERS but I also picked two ZERO-BEGGARS. The fact is when you start looking for potential multi-baggers, you may actually be looking at potential multi-beggars too. So it is up to you to believe it or not? And do remember that you are not as good as investor/trader as you think.

When you want to measure your investing success, it is no good to look at stocks to measure your success. You may want to measure your investing success against your investing goals. Once you have met your investing goals, you have succeeded. Congratulate yourself for that year and take it one year at a time as investing is a marathon race and you still have many years to go. So don't be Momentarily in Happiness over winning stocks!

So what is your investing goal in the stock market?

  1. Beating bank fixed deposit interest rate
  2. Beating inflation rate
  3. Building up your passive income streams
  4. Building up your child's university fund
  5. Building up your retirement fund
  6. Building up your wealth to reach financial independence stage
  7. or etc...
Different investing goals will require different level of investing knowledge and skills; and also require different time frame to define your investing success.

For investing goals like item no 4-6, your investing success is not measure in months or years; but it is measured in terms of decades. Any bad move in your portfolio during the next few big bear markets may cause serious damages to your portfolio and recovery to meet your investing goals may become extremely difficult.

Your investing goals matters

For example, if your investing goal is as small as just beating bank fixed deposit interest rate; then you may have low hanging fruits to pick. It may be quite easy to achieve, right?

Give you some tips. Visit here: Some SGX Stocks with a Minimum of 4% Dividend Yield . Close one eye and throw a few darts and pick your choices.You are likely to beat your investing goals most of the time if not all the times.

The higher your investment goals, the higher level of 3M's is required and you may have to go beyond just being reasonably good at Method, you may need to keep improving on other aspects of 3M's - Mind and Money at the same time. Read? Mind, Method, and Money

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