Friday, 8 January 2016

DBS : Good Entry, Collect dividends, Wait for Good Exit and Re-Entry Approximately. Hard To Lose Back The Capital!


uncle

u think hold long term for blue chip is good? or just buy and sell...better.

portfolio down 20% liao:(


CW8888: This is a tough question to answer but it can be illustrated by Uncle8888's Round 19 for DBS.

Good Entry, Collect dividends, Wait for Good Exit and Re-Entry Approximately. Hard To Lose Back The Capital!

Sold @ $21.04 Bought Back @ $16.98 for yield @ 3.5% and Lock In $4.06 in CPF OA for 2.5% interest


Round 19: ROC +178%, 4,385 days, B $7.53 S $21.04



Sold @ $20.31 Bought Back @ $16.01 for yield @ 3.7% and Lock In $4.30 in CPF OA for 2.5% interest


Round 18: ROC +144.7%, 2,174 days, B $8.27 S $20.31  
 



See carefully and understand the diagram.




11 comments:

  1. i wonder how many will understand

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    1. Revised diagram and see how many don't understand.

      Long-term investing is NOT about holding long-term term to collect dividends as Panadols or cash flow. Good Entry and Good Exit and as many rounds of Re-entries on top of years of collecting dividends as Panadaols cash flow.

      How many rounds have been played that can be traced to that first initiated position e.g. see DBS Round 19?


      Round 19: ROC +178%, 4,385 days, B $7.53 S $21.04

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    2. the thing is that people don't think that way. they have an OR mentality. They think "dividends" OR "trading". but the truth is much more in between.

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  2. Uncle, you using a spreadsheet to do back testing? Do you have an test scenarios you can share?

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    Replies
    1. Not back testing or on paper talking soldiers. It is real people and real trade with real money movement. :-)

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  3. And if we have multiple rounds of realized profits as body fats for winter, does it matter if the next entry price is $17, $16, or $15? Especially if our price target is above $20 plus? (If you price target is $1 profit, that's another story!)


    Many get "stuck" with the meaning of "market timing".

    It's not about computer numerical control (CNC) precision; it's more about fuzzy fuzzy grey grey better entries and better exits.

    See? I used "better" over "good" as its even more grey! LOL!

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    Replies
    1. Entries/Exits are not exclusively for retail traders. :-)

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    2. This comment has been removed by the author.

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    3. Some retail investors enter with an exit price and cut-loss price in mind. Are you one of them?

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  4. Hi Uncle8888,
    Do you usually one entry to one exit or entry-entry-entry exit (seems from diagram above is one entry to one exit)? Because the different strategies deployed would also determine the profit /loss at the end of the day.

    Market timing for exit is not easy.

    ReplyDelete