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.

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

Friday 14 October 2011

Investing vs Trading (3) - Here the Hard Truth from me!

Look at the photo above. I am telling you it has happened in Singapore before. I was there and saw it with my own eyes. Read? 1978 Singapore floods That was old Potong Pasir. That is the Hard Truth on flooding. Will it happen again?

Read? Investing vs Trading (2)

Read? Buy Gold/Silver as insurance or hedge against inflation? (3)

At one of the famous chat box in Singapore, some day, I will hear some fellows shouting Long Keppy and on some other day I will hear some people shouting Short Keppy. It looked like Keppy (Kep Corp) is one of their favourite trading stocks. Indeed, if you asked me it is a good trading stock.

Now, the Hard Truth on investing vs. trading.

It is all about Timing the Market and Time in the Market. Both are equally important . You must get both right in order to make real big money from the stock market. However, traders will just need to get their Timing the Market more right than wrong to make consistent money; but the job of investors can be harder than traders. As they have to get both Timing in the market and Time in the Market right to make real big money from the stock market.

Just like the flooding in old Potong Pasir, I was there. I saw it. I know the Hard Truth of Flooding to the roof top is real. It is damn scary and damaging. I hope it will never happen again in Singapore.

Same for investing and trading as I have done it all before. Here is the Hard Truth from me.

Keppy the favourite trading stock

It happened to be my favourite stock too so I will have a story to tell.

Kep Corp at today closing market price of  $8.70

YTD Iinvesting TSR (%) = Total dividends received + Capital appreciation @ today closing stock price of $8.70
                              =  748% for 10.1 yrs (18 Sep 2001 to 14 Oct 2011)
                              =  74% per year
                              =  6.2% per month

To get that simiilar YTD total return of 748% in 10.1 years, I will have to trade Long/Short at net profit of 6.2% per month for every month for past 10.1 year. That will also mean plenty of TA charts to read to time the market for such returns. So what is the moral of the story?

You just need one CLICK at the Right Time at the Right Stock for same fruit of labour

You just need one click at the right time at the right stock and for that one time effort you may enjoy effortless of the same fruit of labour; otherwise you will have to labour every month for many years or even decade to get it. This is the Hard Truth on investing. This is Timing the Market and Time in the Market that counts for the real big money game.

You can call it luck. You call it gut.  Yes, I was second time lucky with the 2nd click in 2002 for Semb Corp and 3rd time lucky for third click for DBS in 2003.

Will I be lucky again in 2012/2013 if the Big Bear come visiting again for 4th, 5th, and 6th click?

Wait ... may be I have already done the 4th click for Biosensors as I have strong feeling that it may turn out to be my next multi-bagger.

Are you ready for one CLICK at the Right Time at the Right Stock at the next Big Bear?   

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