As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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Sunday, 15 July 2018

Current Size Of Your War Chest Relative To Total Investment Costs In Your Stock Portfolio


Your current size of War Chest relative to total investment costs in your stock portfolio may determine your current style as retail investor.

War Chest > 50% of total investment costs : Aggressive Attacker

War Chest < 10% of total investment costs : Aggressive Defender

Are you playing to attack or to defend in this current local market i.e. SGX?


9 comments:

  1. CW,

    Maybe its my poor england...

    But I thought its the other way round?

    War Chest > 50% = Aggressive DEFENDER?


    ReplyDelete
  2. Do we attack Bear with War Chest or defend against Bear with defensive stocks?

    Why buy so-called defensive stocks? Defend against bull or bear?

    England tutor will appear to correct us. LOL!

    ReplyDelete
    Replies
    1. CW,

      Never thank me...


      You definitely would not be asked to write manuals or written instructions.

      I've done my part to "clarify" for your readers ;)


      Want to bet how many readers will associate Total Investment Costs with Defensive Stocks?

      Draw snake add legs.

      Could have just written Defensive Stocks in the first place...

      LOL!





      Delete
  3. Maybe Uncle8888 referring to investing mindset, depending how much invested we are in risk assets ...

    If >90% of portfolio already in stocks, commodities etc, then better to have defensive mindset ... to protect against catastrophic losses.

    If <50% of portfolio in risk assets, then can have more aggressive mindset ... to be able to identify opportunities in the markets.

    Hmmm?

    ReplyDelete
    Replies
    1. Spur,

      You maybe... I maybe...

      CW's "Total Investment Costs" phrase is as clear as mud.

      LOL!


      But after his clarification he meant "Defensive Stocks", then its crystal ;)


      At first reading, I was thinking... Since when holding "Cash" is considered "aggressive"???

      For someone who calculates his portfolio returns in 2 decimal places, his england lacks precision.


      I'm the opposite ;)

      Delete
  4. i think it is in a Bear Market buy defensive-Text Book style.

    In a Bull market buy as speculayive as U dare.

    As to how much cash U have now, it is your own strategy and believe.

    But the last 2008/9 Bear Market, even i bought defensively till Mar 2009, i was losing up to 50 % of my portfolio at one time. And i still had 40 to 50 % bullets, i stopped buying.

    i supposed i was scared out of my wit!

    That was why i did not buy any in 2015/6 dips.

    i never have been this way.

    i supposed i am still recovering from that shock of my investing life?

    Hope i dare to start buying aggressively again when there is a crisis market.

    Which can happens anytime now, U know.






    ReplyDelete
    Replies
    1. This comment has been removed by the author.

      Delete
    2. temperament,

      My sentiments exactly.

      I've found its a lot "easier", psychologically speaking, to add to winning trading positions than to add to losing trading positions.


      I wonder how many with "plans" to add X% when STI goes to 2800, Y% at 2500, and z% at 2200 will really do when that time comes...

      They must be a lot disciplined and mentally stronger than you and me ;)

      Delete
    3. Average up; you get lesser units. Huat less if right

      Average down; you get more units. Huat more if right

      Delete

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