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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
GOLD VS SGD Chart
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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Monday, December 7, 2009

Who can be trusted in the market?

There are so many players in the market and who are the one you can trust?

Recently one of my friends told me that his broker recommended him a stock. He bought it, and since then the price of that stock keeps dropping. I don't understand why he chose to believe in his broker where his broker don't even share out his portfolio at all. This incident make me has the urge to write this post.

In my opinion, there are two people that you can trust in the market. The first one is you of course. If you cannot trust your own judgement in buying stock, why buy it in the first place?

The second one is someone who shares with other what are the stocks he buy or sell, show people how his strategy can work by using himself as an example, but will not make any recommendations.

Give you an analogy. If you want to learn how to play a piano, will you find someone who can talk about the history of piano all day, or someone that can demonstrate his skills by playing the piano in front of you? Of course for myself I will choose the second one as he has the skills who can show me the right way to play the piano.

Every morning, some tv channels always have analysts to talk about the market. They can talk very well and normally with some recommendation on what share to buy. Do these analysts ever show you their portfolio, tell you exactly what strategy they are using, any prove of their winning track record? The answer is almost all "NO". Basically these analysts are just paid to write and talk, just like someone who just talk about the history of piano and you don't know whether he can actually play the piano or not.

7 comments:

SK Lim said...

Your strategy is similar to mine. Me, I always consider the worst case scenario, which is, the share price drop drastically overnight and my $ got stuck. If so, avg down only works for good co.

How you rate SPH and why it is not in your radar?

Majority of my ammo now is reserved for volatile blue chip like SGX, Venture, etc. Just waiting for correction. Good?

Createwealth8888 said...

Warren never tell people what he is going to buy. People knew what he has bought through filing because of the substantial buy.

Warren bought into biz and become substantial shareholder but retail investors are just buying stocks and never ever think that you are buying into biz like Warren.

Know the difference.

Createwealth8888 said...

Your Broker's advice

http://createwealth8888.blogspot.com/2009/02/your-brokers-advice.html

Freedom Achiever said...

Hi Createwealth8888,

Thank for sharing the information with me. :)

Regards

Freedom Achiever said...

Hi SK Lim,

I am not total sure about the prospect of newspaper and magazine as most of the thing are online.

My strategy is to buy undervalued good company stock and collect dividends along the way. Now I am waiting for my singtel dividend of $620.

sgxdaily said...

But Warren never tell you what to buy.

Freedom Achiever said...

Hi sgxdaily,

You have to choose the stocks that are suitable for you. I have listed my choice @ http://myinvestmentportfolioinsingapore.blogspot.com/2009/11/my-stock-and-etf-choices_01.html

Regards
Freedom Achiever

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