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.

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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?
Posted by Createwealth8888 at 23:31
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8 comments:

  1. Singapore Man of Leisure16 July 2018 at 12:59:00 GMT+8

    CW,

    Maybe its my poor england...

    But I thought its the other way round?

    War Chest > 50% = Aggressive DEFENDER?


    ReplyDelete
  2. Createwealth888816 July 2018 at 21:24:00 GMT+8

    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. Singapore Man of Leisure16 July 2018 at 21:49:00 GMT+8

      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. Spur17 July 2018 at 11:01:00 GMT+8

    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. Singapore Man of Leisure17 July 2018 at 14:53:00 GMT+8

      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. Singapore Man of Leisure17 July 2018 at 16:06:00 GMT+8

    This comment has been removed by the author.

    ReplyDelete
  5. Singapore Man of Leisure17 July 2018 at 16:07:00 GMT+8

    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 ;)

    ReplyDelete
  6. Createwealth888817 July 2018 at 20:14:00 GMT+8

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

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

    ReplyDelete

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