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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, January 19, 2010

My Investment Rule No. 7

My investment rule no. 7 states that "You can never find it easy to catch a butterfly unless you have a big net." In my first rule, I say that market direction is unpredictable. It is like a butterfly that is flying up and down. So in order to gain money from investment we must have a strategy and enough capital to manage the random nature of the market.

If you only have a small capital, it is not easy to gain money in the stock market unless you are very lucky. All you can do is to put in one or two positions and have to wait for the market direction to go up in order to earn money. If the market direction happens to go down, you either cut loss or wait patiently for the price to go up again.

However if you have a big capital, you can split it into a few parts and use dollar-averaging strategy. All you will need to do is to slowly invest small position at a time. If the price of your stock happens to go down, you will add in more positions. For good fundamental stock, there will be a time where its price will hit the bottom and started to rebound from there. At that point of time you can stop adding more position and wait for the price to go up until you are satisfied with your gains.

Putting multiple positions at different prices is like having a big net and you will find that it is definitely easier to "catch" money with that.

My Quotes/Rules of Investment


JS said...

Great information.
Share Market Guide

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