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I'm a Singaporean. The purpose for all my blogs is to share my life experiences in Singapore.

My Lessons on Investment

What are Shares, Unit Trust and ETF?
See which investment instrument is suitable for you.
What are Preference Shares?
It is different from the common shares.
How to invest using your CPF saving?
Enhancing your retirement saving
How to invest regularly if you do not have a lot of saving?
You still can invest if you can save $100 per month
How to buy gold in Singapore?
Different ways of investing in Gold.
My Investment Strategy
Having a winning strategy is important
Be a investor or a trader?
Reasons on why I want to be a investor rather than a trader
Peace of mind after buying shares?
Reasons on sleepless night after buying shares
Things to avoid in stock market.
Don't attempt to try these even you are an expert
My favorite quotes from Warren Buffett
Very meaningful and useful investment quotes
Buying stocks based on price and value
This is the method I use when buying stocks
Investor, Traders and Speculators Charts
Charts are affected by different players in the markets
My Quotes/Rules of Investment
My own investment rules and quotes
The Goose That Laid the Golden Eggs
Protect them at all costs
Dealing with Market Randomness
Reasons on why market direction cannot be predicted
Who can be trusted in the market?
Beware of people who give you tips
Why I am not afraid of losing money in my investment?
Know your own limits and rules of the game.

My Market Analysis

STI Index
Comparison between 1998-2000 and 2008-2000
STI Index movement
Prediction from Oct 2009 to 2011
Reason Why Gold might be a good investment
EUR/USD 10 years chart
Will it go up or down?
Taiji Symbol VS S&P 500
S&P 500 25 years chart
True value of S&P 500
Based on dollar index from 1988 to 2009
US Dollar Index
Using Taiji to Analyse
S&P(2007 to 2009) VS NIKKEI (1990 to 1992)
Is there any similarity?


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Tuesday, November 3, 2009

My strategy in investing stocks.

Since I have identified the stocks/ETFs to be bought for my portfolio, I will be using my strategy to buy these stocks. My strategy is using averaging. I believe that it will be very hard to maximum your gain by guessing the market. However using averaging has a good chance to get half the maximum gain (or half the maximum loss). If got time, I will explain the mathematics for this strategy. My only assumption for this to work is market will go up to break new high in the future.

Using averaging strategy, I will buy at equal amount at each hundred level of the STI index. For example, when STI reaches 2700 I will buy some, STI reaches 2600 I will buy some, STI reaches 2800 I will buy some. I must maintain a discipline not to overbuy at each level. In my planning, the lowest level will be at 1000.

In that sense, I won't be worrying about uptrend or downtrend of the market. Dividends are what I am targeting, so a strategy that can restrict my loss to 50% is very important.

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