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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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My Mobile URL
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Saturday, March 6, 2010

Investment Rule no. 4:

My Investment Rule no. 4: No discipline is the key of losing money in the market.

We always hear people say, “You can’t go broke taking profits.” However in my opinion, one may just go broke by taking small profit at a time. Most people does not have the idea to maximize their gain and because of that they tend to sell their holdings too early. When come to loses, people are not able to sell their holdings early and end up taking large losses.

Remember this point, investing and trading is not about maximizing the number of winning trades. The two examples below will be used to explain this fact.

Example 1: you win a total of $1000 in 9 trades but in the 10th trade, you lose $10000. Basically you are losing $9000, even though, you have more winning trades.

Example 2: You lose a total of $1000 in 9 trades, but in the 10th trade, you win $10000. Basically you are gaining $9000 even though you have less winning trades.

Every investor or trader should think of their own strategies and must have the discipline to follow it. The strategy must be working for long term and not short term gain. Short term market movement always like to mislead people to go against their strategies. And most of the time, this may result in people losing opportunities to make more money, or can even make people lose more money.

My Quotes/Rules of Investment

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