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, 29 March 2013

Should our investing decisions be continuous struggle???

Just For Thinking ...

Should our investing decisions be continuous struggle???

Someone asked me few questions last night ....

To take some profit since market is trending higher and the chance of Bear market is even nearer?

How about capital re-cycling?

Is collecting dividend a bit slow in building wealth from the stock market?

Uncle8888 has went through such questions before. He is quite sure many more retail investors who have smaller account size may be asking similar questions themselves.

Are we continuously struggling with our investing decisions across market cycles of Bulls and Bears?

One way to ease our continuous struggle in making investing decisions is to use Goal Based Investing Approach.

One, clearly set your Investing Goals

Two, track and measure your investing performance

Three, continuous improve your portfolio and money management skills

Four, knowing where you want to go and knowing how you are doing along your investing journey will help to ease your continuous struggle in making investing decision across market cycles.

For example,

You will feel happy when you can see money crediting to your bank from CDP on quarterly basis; then dividend income investing should be good fit for you. It will help to ease your continuous struggle in making investing decisions as the next quarter is always around the corner. No meh?

Many time, Uncle888 have seen many happy retail investors posting in the cboxes and forums.

Dividend is coming ...

You may want to think of S-REITs and some other high dividend payout ratio counters like ST Eng or SPH.

Sometime ST Eng or SPH even paid out 100% of their earning for you to count money.

Happy. Right?

But, for retail investors like Uncle8888 who don't have large account size to start off in the stock market.

Sometime, we have to be realistic! It is quite obvious that by counting money credited by CDP into our bank account and by slowly accumulating these dividends till the money is large enough for re-investing. It is definitely going to be slow approach in building wealth from the stock market.

Why do we think re-investing dividends for compounding growth is easy?

Do we believe that by the time we have accumulated fairly large money from dividends to re-invest, the market may have already move much higher that the investing opportunity for higher yield could have been lost. No???

Another example,

When you feel happy when you make some money that is good enough to take your family to Swensen for set meals and ice-cream; then do small trading instead of long-term investing as there are likely to be more chances of going to Swensen.

If you want to be investor, then it is good to know thyself.

Read? Do and Don't in Investing

No comments:

Post a Comment

Related Posts with Thumbnails