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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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Sunday, March 21, 2010

Seven Habits of Highly Profitable Investor 2: Buy with the selling price in mind

Many new investors buy share without knowing when to take profit. These people are less likely to be profitable since they do not have an exit plan. Hence it is very important to define your selling price before you buy any shares.
The below is a typical example to show a new investor’s mind set when they just entered the market.A new investor invested in a stock and his stock price rose. He was very happy as he had some good paper profit after a few years. Without proper defining the selling price, he might think that the price will go up further. Due to his greed, he refused to sell even though the stock was overvalued. After sometime, the stock prices started to plunge, but he still hope that the price will rebound and go up higher. The rebound never appeared and his paper profit turned into a paper loss. In the end, he eventually gave it up at a big loss which he held for many years.

We must always buy with the selling price in mind. We must set our profit goal before buying any shares as that helps us trigger our action to take the profit when it hits our target price. Having a goal in mind helps to prevent greed from taken over our mind. If you have never set your profit goal before, I believe now is the time to do it.

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