STI: Where and When Will The Pain Of Retail Investors End?

Migration Plan For Financial Independence 1.0 To Financial Independence 2.0 (2)

Read? Migration Plan For Financial Independence 1.0 To Financial Independence 2.0


Uncle8888 as Tracking and Measuring freak, this time is no different.

 

Migration Plan For Financial Independence 1.0 To Financial Independence 2.0

Read? What Next After Financial Independence (FIRE)? How About Financial Freedom in Investing?


Stress Test and Migration Plan for Financial Independence 1.0 to Financial Independence 2.0

What Next After Financial Independence (FIRE)? How About Financial Freedom in Investing?

We have been reading about Financial Independence from some investment bloggers on how reaching the Edge of Financial Independence gives us the option to retire from our day job/employment and taking back those 8 to 10 hours of working time for setting our own priorities in life at our own freedom.

1. 
    

   Small Time Investor 9 January 2016 at 17:01:00 GMT+8

    

   Uncle 8888
   
   So 2000-2008 becomes family chest, 2008 on wards then is your real "war" chest ?
   
   Dunno is it interpret this way. 

   
   

   ReplyDelete
    
   Replies

   
   Createwealth88889 January 2016 at 17:40:00 GMT+8
    
   Hmm ... Wah!
   
   True leh. 2000 - 2008 the so-called war chest is actually money coming out of family chest. It is just naming convention that is changed. From 2008, the money was taken back from the stock market through War so it is rightfully the War Chest.
   
   clap clap clap!
   
   
   Delete
   Reply

The above comment by Small Time Investor has Uncle8888 thinking loud for hours!




Why are we working so hard on our investing to generate cash flow from Family Chest (i.e. Savings from our earned income from job/employment?


To achieve Financial Independence. Right?


After reaching Financial Independence, our savings from our hard earned income from our job/employment are still at risks of losing back to Mr. Market. So what next for Financial Independence 2.0?


How about financial freedom in Investing? Right?


The real War Chest from the market without a single cent coming from his Family Chest. 

That is financial freedom in Investing! 

Our Investment is really working hard for us without us ever losing our hard earned money. Our Investment is returning Mathematically Infinite Return!

sibei shiok!

In the next Bear - Bull (201X to 201Y/202X), Uncle8888 will aim to achieve his Financial Independence 2.0!  (No definite time frame here! Let see how that Man can find hole to Poke. Hee hee!)

At the Edge of Financial Independence 2.0, he will transfer all his Family Chest from Tap 3 to Tap 1 to just earn Interests.

 

 

In the Bearish 31 Dec 2008 : Who Took My Wealth? But, 7 Years after 2008, In 9 Jan 2016 ....

 

SMOL: Sometimes it is better to ask those coming down the mountain than those who are still climbing the mountain.

 

 

On Wednesday, 31 December 2008

Read? Who Took My Wealth?

 

What did you sense from his blog post on 31 Dec 2008?

Despair, Regret, Frustrated, Demoralizing, Feeling of stupidity of setting Goals that he has no control, Shattered dream, ....

So Gloomy!

The future of his investing looked so bleak! It looked like he was not going to meet his goal of Financial Independence. He should stop dreaming and get real! (Hmm ... Grasshopper wasn't around at that time in the cyber world to poke him. Yeah!)

But, now in 9 Jan 2016 ....

What Uncle8888 has been posting in the last few years?

See the difference?


Despair?
Regret?
Frustrated?
Demoralizing?
Feeling of stupidity of setting Goals that he has no control?
Shattered dream?

 .....

What is the Moral of The Story?

Don't give up in investing!

Stay committed. 

Revise and revise your investing strategies. 

When it becomes too obvious, have your plan to cut losses to consolidate cash for your war chest. Be brave!

In Crisis, there will be plenty of opportunities to implement Switch Horses strategy from dying horses to sick horses. Dying Horses are more likely to be dead while sick Horses can still recover and gallop far and far away!

Wait for ... Read? Investing Made Simple by Uncle8888 (29)

Have your stock portfolio down a lots recently?

So what do you think now after reading?

Poly grads earn more, but take longer to find jobs: Survey

SINGAPORE: Polytechnic graduates who found permanent full-time jobs earned higher salaries in 2015 than the previous year, but they also took longer to find jobs.


Results from the 2015 Graduate Employment Survey, jointly conducted by the five polytechnics, released on Friday (Jan 8) revealed that the the median gross monthly salary was S$2,100, up 5 per cent from S$2,000 in 2014.










Those from the Health Sciences and Built Environment, Engineering and Maritime course categories earned more than their peers. Health Sciences polytechnic graduates who have completed National Service earn the highest median monthly gross salary of S$2,610, the findings showed.

Entries and Exits. The Opposite Way Of Grasshopper and Ant!

Grasshopper: We focus on our setup, better Entries and Exist to grow our trading account. We are living in our PRESENT since we can't control our FUTURE!


Ant: We look back at our PAST to calibrate and re-calibrate our PRESENT for our FUTURE! 

We believe we still have some control (SMOL: You mean influence?) over our War Chest to generate the desired level of investment income for our PRESENT and most importantly it is all about our FUTURE!


We have Goals for our FUTRE!


But, some Ants do have better Entries and Exits strategies! 


So not all Ants are Black!


Uncle8888's War Chest, Plan and his Goals



We often hear from investment bloggers in the cyber world on ..

Buy slowly!

Sell slowly!

Do you have any ideas?

How slow is slow?

How fast is fast?

Real person with real deployment and re-building of War Chest.


You may need to know this small background information to understand the images better ...


He didn't add a single cent from his CASH saving to his war chest since Jan 2000 as he didn't have the financial muscle to do that.

He is from single household income feeding five mouths and strictly risk control and management in place to protect his family against more than expected financial losses. He only loses what he can afford to limit the financial impact to his family! Be a responsible spouse and father!




Read this. You may understand why?

Not Interested In Investing or Too scared To Invest???

Major STI market cycles - Horrible Bears and Beautiful Bulls!


Since he has fully paid off his cheaper HDB loan in five years; all his CPF contributions made up bulk of his savings.


How slow?


How fast?

 

What Are The Risks In Investing?

Read? Understanding Stock Market Risks - Financial Fraud Risk is Real! (8)

Read? Understanding Stock Market Risks - No 7 Risk


Risks are very personal!

It is no different from Recession and Depression.

When our neighbours next door were retrenched and couldn't find any replacement for the next few months but we are still employed. That is recession!

When we are retrenched, that is depression!


Risks are no different from this story. How much money can we afford to lose and how the loss is affecting us?

 Read? The Hen & the Pig Go To Breakfast (4)
 

DBS : Good Entry, Collect dividends, Wait for Good Exit and Re-Entry Approximately. Hard To Lose Back The Capital! (2)

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

Back to the question again!

 
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 real holding in DBS for dividends and sitting on paper profits over the last 13 years since Apr 2003 and his partial sale of DBS holding in Round 19 and Re-entry @ $16.01 on 7 Jan 2016. 


Holding vs. Round 19 and Re-Entry @ $16.01


It is always IF, a BIG IF, if we are successful in market timing for better Exit and approximate Re-Entry. We will win!


BUT, a BIG IF!

 

 



 

Dow, Nasdaq close down triple digits, in correction on China worries

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!

Read? DBS: Bought Back @ $16.01

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.

The Next Bear Market Crash But May Not Be The Same Marathon Investment Race!

When Uncle8888 was speculating and leveraging in his first 10-year investment marathon race; you can see how badly he fell in 2008!

His second 10-year investment marathon race. 



In the next bear market crash, since he is no longer speculating and leveraging; there is no absolute need for him to cut losses anymore.

How bad can it be?
 
Let see how he runs?

The beginning of a long suffering by RETAIL investors?

If History repeats itself ...

The beginning of a long suffering by RETAIL investors.
 

Minimum Effort Investing By The Way of STI ETF!

Call it passive investing you get poked. 

How about call it minimum effort investing by the way of STI ETF?

Yield is based on average of 8.5 cts (2008 to 2015)

DBS: Bought Back @ $16.01 for Round 21

Read? DBS : Bought @ $16.98 for Round 20

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

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

Collecting dividends and interests for cash flow in the Land of Retirement.


Round 19: ROC +178%, 4,385 days, B $7.53 S $21.04  
Round 18: ROC +144.7%, 2,174 days, B $8.27 S $20.31  
Round 17: ROC - 31.1%, 232 days, B $24.20 S $16.80  
Round 16: ROC - 21.6%, 222 days, B $23.20 S $18.32  
Round 15: ROC - 18.1%, 186 days, B $22.90 S $18.88  
Round 14: ROC - 9.2%, 70 days, B $21.00 S $19.20  
Round 13: ROC +9%, 65 days, B $20.50 S $22.50 
Round 12: ROC +10.6%, 8 days, B $20.50 S $22.60

Unlocking Your War Chest Akan Datang?

Walau!

Read this in cyber world .... Walau!

Let’s stop complaining that the cost of living in Singapore is too high when we are (ironically) spending a good chunk of money each year taking quarterly holiday trips overseas.



CW8888:

 

“The world is a book and those who do not travel read only one page.”

― Augustine of Hippo

 

Read ?  人生太短，不要明白太晚!

Life is too short, don't understand too late!
 
Put the money to save, waiting for the post-retirement go to enjoy. Results after retirement age, because of the big, bad body, action inconvenient, not going anywhere.. The money saved to old-age, such as the results of the kids grow up, to study abroad to entrepreneurship, business, want to spend money to marry his wife, their pensions were leaving.

When they have sufficient capacity to be good to yourself, do it immediately, the elderly sometimes is unable to do middle aged or young people can do, age and health is a major factor.

Kids grew up going to tell him, to keep you in high school, University after getting on my own, to study, Entrepreneurship, to marry his wife, figured it out for yourself, yourself to stay one more money, don't want the kids to live for.

We are all getting old too fast, but smart too late. Friends last year, divorced this sudden accident, I found it difficult to accept, but the arrival of death, but always be the case. My friend said, his wife the most hope he send flowers to her, but he thinks he's too waste, total push said to wait until the next time you get results, but after she died, decorated with fresh flowers her soul church. It's not too stupid?

Wait...... Wait...... , we all seem to be the life, spent waiting.
" wait until after I graduated from college, I'll be how......" I said our own.
" wait until after I buy a house!"......
" wait for the youngest child after the wedding!"......
" I bargained after this business!"......
" wait until after I'm dead!"......

Everyone are willing to sacrifice the moment, go to the exchange for unknown waiting; sacrifice life present and hard money, go to the purchase of the generations of the ambiance.

Many people think, must wait until sometime after the completion or something, and then take action. Tomorrow, I'll start the campaign; tomorrow I'll be good to him a little bit; next week we're looking for, however, life always changes, environmental always unpredictable, in reality, a variety of unexpected situation always abound. So, how are we going to face life? We need not wait till life flawless, also need not wait until everything is smooth, what do you want to do, now we can start.

A person will never predict the future, so don't delay thought about life, don't hesitate to express their hearts in the words of life, because only in a moment. Time to go for a walk; post-retirement, we are going to enjoy it.

Remember, don't let yourself companion of "too late" free of hate. The dead will not chase, epic is uncertain, the most precious, most in real-time "available" in the moment, often in both passing day, all of a sudden missed. Life is short, unpredictable, I have one little poem so write: High days and where people live, calmly; please where to go, all of a sudden that much longer. It is the road to the best of my life, such as sending quickly fleeting alarm.

There are many things in you, don't know how to cherish life, has been before; there are many people, you're also late in the heart, before the old people have become. Regret a thing happen again, but never regret chasing after " knew how to how to " is useless," At that time " has been in the past, you read it after people have left you.

Sentence said Sweden motto :" We're getting old too fast, but smart too late." No matter whether you are aware, life has been in the forward.

Life does not return tickets on sale, the lost will never be. Will hopes "wait until the convenient time to enjoy", we don't know how many were lost possible happiness!

Investment Portfolio Diversification : Personal Money Loss Risk vs. Theoritical Market Risk?

Your losses in your investment is PERSONAL so make your portfolio diversification personal too. 

Losing is part of the Game! 

At the end of the day, when our investment portfolio can take several hits of fairly large losses and we still end up WINNING! 

That is DIVERSIFICATION. 

Don't worry too much over theory and concepts. They are good tools for pokes!

Real People. Real Diversification!

Only stocks listed in SGX! 


Not Diversification? THEN WHAT?
 

As of yesterday's market closing stock price ...

STI Bear Akan Datang?

Entries/Exits and Goals??? (4)

Read? Entries/Exits and Goals??? (3)

Passionate Grasshopper: You see. After three years of many Entries and Exits, I got a Virgin 10 Bagger. Here is the Maths. It's 11 bagger in 3 years - 1x2, then x3, then x1.88.

Planning Ant: Like that count ah! Me too. 6 Entries BUT ZERO EXIT. It is really an Old Virgin 10 Bagger who is more than 14 years old so not pretty!

The Moral of The Story ...


Two opposite sides of the SAME coin may lead us to our final destination. One way is to take the faster side to Rome but we must always be on the Ball and focusing our eyes sharply on Entries/Exits and the other way is old and boring, patiently and focusing on Entries and less on Exits.

With many Entries/Exits, soon you will find your Virgin 10 Bagger or with a few good Entries and let Time takes us along the ride and we will see an Old Virgin 10 Bagger too.  We decide and choose our own poison.


That's folk!

End of Chat on Entries/Exits!

Counting Compounding Interests in CPF Accounts. No Stress! (2)

Read? Counting Compounding Interests in CPF Accounts. No Stress! 


Why Uncle8888 loves his CPF OA?

With his planned retirement after his 60th birthday in Sep 2016 and with no more CPF contributions from his employment, will he be able to achieve his Goal of becoming Millionaire CPF Member in Ordinary Account?

That Man will laugh again!

Why set Goal when you have no control over it? 

Counting Compounding Interests in CPF Accounts. No Stress!

CPF interests have been credited in our accounts!

Shiok! 

We are receiving them without any stress. This is the power of compounding interests! The 8 Wonder of the World!

Compounding interest is NEVER SAME as compounding investment return in our investment portfolio. Compounding investment return in our investment can be negative. It may return us to worse off position after years of investing. So make sure that you fully understand the difference. Don't anyhow be seduced by those loud voices in the cyber world on compounding for long-term investing.

 

Entries/Exits and Goals??? (3)

Read? Entries/Exits and Goals??? (2)

Passionate Grasshopper: Don't you dance passionately to the different tunes of the Music?

Planning Ant: Yes. I dance but not that often as I could only dance to some boring tunes of the Music. How often can it be? No, I don't really dance passionately!

Passionate Grasshopper:  So we are at opposite side of the Insect Kingdom.


Planning Ant: Let me think about it. Oh... I see!


Planning Ant: You have your Mountain for pension. I have my Tap 1 for pension. You dance passionately to different tunes of the Music while I dance rarely but passionate when some boring tunes of the Music are turn on!

Yeah! We are opposite of the SAME coin as we both believe in Entries/Exits. You will have many Entries and Exits while I have fewer.


In conclusion

We can be passionate about anything when we have enough pensions. Right?