Economy slowdown

[84gunner]

Originally Posted by SexRush

yeah, but i do believe the 'dynasty' will sooner or later be taken over

I not only believe, I'm waiting! LKY is more than 80 years old oredi, he may kick the bucket anytime! Then let's see show....hee hee hee

There's a Chinese saying, "富贵不过 3 代"

[84gunner]

Originally Posted by jit singapore 1

No offend to all bros here, just my 2cents opinion and experience.

I do agree the poor ppls will be poorer and the rich ppls will become richer. This is a very true theory that we need to accept.
But my 2cents opinion is, poor ppls also afford to make a better life if they know how to do some invests. Ocos if you really very very poor, then that will be another story.

My experience and suggestion is: try to keep / save $$$ every month, $100, $200, $500 or $1000 etc as you’re affording as you can. Let say per month you can save $300, 1 year is $3,600, and then 5 year is $18,000. Every 3-6 years circle, the stock market will meet the “BEAR”. All share prices will drop like hell, like what recently happening. With the $18,000, you just close your eye to pick any share, let say SGX, Yangzijia, Sing Tel, DBS, UOB, Semcorp, SIA, China Hongx, F&N, Venture, ComfortDelGro, Hyflux, Wilmar etc (ocos no the rubbish shares) and within another 2 to 5 years, you’ll easily get back at least 40% of the return. Sometime you may get back 80-90% or more than 100% of the return included the bonus, dividend etc.

Let say within 3 years you get back 60% of the return, the total you have is: $18,000 + $10,800 (gain) + $10,800 (saving for another 3 year with every month $300, 02/10/2008 to 02/10/2011) = $39,600. It means within the 8 years, your total saving will be $39,600.

And let say again, on year 2013, economy going down again (means “BEAR” come again) you have $39,600 + $7,200 (saving every month $300 from 02/10/2011 to 02/10/2013) Total = $46,800. This time you again close your eye to grab any share, and this time your return may be 80% within 2 years, your will have: $46,800 + $37,440 (80% return) + $7,200 (saving from 02/10/2013 to 02/10/2015) = $91,440, it mean within the 10 year your cash saving will be $36,000 ($300 per month for 10 year) + $55,440 (return from invest in share) = $91,440

If your monthly saving is $600, the amount gain will be $91,440 x 2 = $182,880 an so on………….

Not really really very very poor ppls also can make money as rich ppls even not so much than them. But it is better than nothing, Am I right?????
Do you think if you never plan your financial planning (if you are not high income ppls), you think you can have $91,440 or $182,880 etc after 10 years. My experience is NO NO NO and NO.

So please plan properly, for coming 5, 10 or may be 20 years you may become so call rich ppls too and also can afford to call the high end FL to enjoy, haha, just joking and don’t zap me

When buying share, remember this : DON"T Greedy.

No offence to u either, but yr "plan" & calculation is based on ideal situation!

There are many factors affecting such "blueprint". Example, rising prices but salaries not rising in tandem with such rising costs of living (exactly what's happening now). When economy is not doing well, there's job cuts / retrenchments. With rising inflation, this few tens of thousands several years down the road is not worth as much as today.

The investment "plan" u mentioned is high risk. What happens if the shares don't rise as much as u expect? or worse, drop & u make a loss? Anyway, the 3 - 6 year cycle u mentioned is too short a period. Whatever form of investment, 1 should proceed only when he really understands where he is putting his monies, and the consequences.

But I do agree, that having some regular savings is important. Without that, 1 is a sitting duck there waiting for things to happen & be helpless.

[boysaigon]

The investment "plan" u mentioned is high risk. What happens if the shares don't rise as much as u expect? or worse, drop & u make a loss? Anyway, the 3 - 6 year cycle u mentioned is too short a period. Whatever form of investment, 1 should proceed only when he really understands where he is parking his monies, and the consequences.

But I do agree, that having some regular savings is important. Without that, 1 is a sitting duck there waiting for things to happen & be helpless.[/QUOTE]

...i agree with bro Gunner here. The saving-cum-investment mapped out here is based on an ideal marketing timing strategy; this method is still a questionable one and surely not suitable for part-time investors. Also, it assumes no rainy days or big ticket items thru out the investment/saving period. These assumptions are less realistic if practical at all.

Having said that, i do agree this is a good model in general, especially for those who are keen to go into longer term investment during this lean time. The bear market is already in its 50th week and a typical bear cycle is about 80+ weeks. It may not be the bottom yet but there are good pickings now if you are committed to long term investment. Try the blue chips...

cheers

[hamlinlau]

Originally Posted by jit singapore 1

No offend to all bros here, just my 2cents opinion and experience.

I do agree the poor ppls will be poorer and the rich ppls will become richer. This is a very true theory that we need to accept.
But my 2cents opinion is, poor ppls also afford to make a better life if they know how to do some invests. Ocos if you really very very poor, then that will be another story.

My experience and suggestion is: try to keep / save $$$ every month, $100, $200, $500 or $1000 etc as you’re affording as you can. Let say per month you can save $300, 1 year is $3,600, and then 5 year is $18,000. Every 3-6 years circle, the stock market will meet the “BEAR”. All share prices will drop like hell, like what recently happening. With the $18,000, you just close your eye to pick any share, let say SGX, Yangzijia, Sing Tel, DBS, UOB, Semcorp, SIA, China Hongx, F&N, Venture, ComfortDelGro, Hyflux, Wilmar etc (ocos no the rubbish shares) and within another 2 to 5 years, you’ll easily get back at least 40% of the return. Sometime you may get back 80-90% or more than 100% of the return included the bonus, dividend etc.

Let say within 3 years you get back 60% of the return, the total you have is: $18,000 + $10,800 (gain) + $10,800 (saving for another 3 year with every month $300, 02/10/2008 to 02/10/2011) = $39,600. It means within the 8 years, your total saving will be $39,600.

And let say again, on year 2013, economy going down again (means “BEAR” come again) you have $39,600 + $7,200 (saving every month $300 from 02/10/2011 to 02/10/2013) Total = $46,800. This time you again close your eye to grab any share, and this time your return may be 80% within 2 years, your will have: $46,800 + $37,440 (80% return) + $7,200 (saving from 02/10/2013 to 02/10/2015) = $91,440, it mean within the 10 year your cash saving will be $36,000 ($300 per month for 10 year) + $55,440 (return from invest in share) = $91,440

If your monthly saving is $600, the amount gain will be $91,440 x 2 = $182,880 an so on………….

Not really really very very poor ppls also can make money as rich ppls even not so much than them. But it is better than nothing, Am I right?????
Do you think if you never plan your financial planning (if you are not high income ppls), you think you can have $91,440 or $182,880 etc after 10 years. My experience is NO NO NO and NO.

So please plan properly, for coming 5, 10 or may be 20 years you may become so call rich ppls too and also can afford to call the high end FL to enjoy, haha, just joking and don’t zap me

When buying share, remember this : DON"T Greedy.

Eerrrrr... rather simplistic picture but a noble advice. Save for the family and then save to CHEONG!!!!

[jit singapore 1]

[QUOTE=84gunner;3112363]No offence to u either, but yr "plan" & calculation is based on ideal situation!

As I mention that is my opinion and experience…..

No too worry, every share will up after hitting to lower (unless the rubbish shares). Do a research to the share that I mention early and also others shares, you‘ll agree with me. Actually sometime it not really to need take 5 years, some take a few months to 1 to 2 years time.

To gain in share market, please follow the rules: a) be patient (wait share drop and drop), b) do not greedy c) keep your “bullet” and waiting for chance d) prepare for 1 to 5 years invest.

Myself start in playing share when my age 14 (unbelievable right!). My dad teaches me a lot and allows me to use my saving to play share under his name and my own risk. I must say till today, I gain many many times than the figure I mention at my thread above. It make me can retire earier. If I make saving a few hundred to a thousand per month, I must say till today I still a poor person in Singapore and might need to work till my 66 years old consider my kids all graduate. Can't imaging it Only with making some investment, will make you richer and change your life standard Trust me……

Take a look for those millionaires in Singapore, which one never play or buy share? None……. See Mr. “Huang Hong Lian” buy a AIG share a week plus ago when the share price drop to US$10plus, within a few hours, AIG bound back to US $30 plus, he won a few million within a few hours and donated it all to LKK foundation. That applied that what I mention in the above rules.

At least do a small invest for a small better future What we earn now, not really enough to cover the inflation unless you earn $10,000 plus above per month. Or else, you still consider poor person in Singapore.

I am not say to promote the shares, but just share to you my experience how to getting richer and richer and to make your living standard better and better. Cheers....

[hamlinlau]

I do agree with Bro jit singapore 1 that you have to make your money work for you if you want to get rich. Even at 250K annual salary you are at best gives you 2mil after 10yrs assuming you dont eat and spend. An average condo cost 1 to 1.5 mil and a simple 2.0 litre car cost you easily 250k for 10yrs. What have you left?

I didnt have the luxury of using my dad's account to play with stocks. A wise choice cos I would have lost all his money for him. I went through the hard way of learning through experience. Here's my little story, not a popular one but I would like to share it with everyone.

I have been a fringe player for the longest time without really understanding what stocks and common shares. Started with 500 then 1k profits. My appetite soon grew and in no time I was punting in multiples of 100 lots. Cheques of 10-20K is a common sight. Between 95 to 97 till the brink of the collapse in Thailand I have made over 1million in the stock market, punting on every rumour I heard. On the day I made my last sale with my broker my deficit stands at 1.4 million!!! I was delirious at that time and my wife almost divorced me To add to the blow, I have spent 30% of my winfall and pumped 50% back into the market hoping to make more. I was left with a staggering 800k to repay. I would have declared bankrupt if not for my broker(also my cousin). It took me 4 yrs to pay off my debt

A few things we have to bear in mind when trading in any instrument. DUE DILIGENCE, PRUDENCE and DISCIPLINE is a must if you want to STAY a winner year after year.

Most importantly.. you must have financial stability before you start investing anyting. Dont invest your baby's milk powder away cos the money might get stuck in there for a long time.

The Economy??? I dont think we have seen the end of this Credit Crisis. I think that 700bil bailout will not ease the problem(if it gets thru the Hse of REP this friday). I am preparing for harder times to come when the wave hit Singapore, when property falls back to 2005 or 2004 levels. Stocks is nearing 2005 lows. Happy trading and cheonging.


Just my personal views hor.
Cheers

[84gunner]

[QUOTE=jit singapore 1;3112572]

Originally Posted by 84gunner

No offence to u either, but yr "plan" & calculation is based on ideal situation!

As I mention that is my opinion and experience…..

No too worry, every share will up after hitting to lower (unless the rubbish shares). Do a research to the share that I mention early and also others shares, you‘ll agree with me. Actually sometime it not really to need take 5 years, some take a few months to 1 to 2 years time.

To gain in share market, please follow the rules: a) be patient (wait share drop and drop), b) do not greedy c) keep your “bullet” and waiting for chance d) prepare for 1 to 5 years invest.

Myself start in playing share when my age 14 (unbelievable right!). My dad teaches me a lot and allows me to use my saving to play share under his name and my own risk. I must say till today, I gain many many times than the figure I mention at my thread above. It make me can retire earier. If I make saving a few hundred to a thousand per month, I must say till today I still a poor person in Singapore and might need to work till my 66 years old consider my kids all graduate. Can't imaging it Only with making some investment, will make you richer and change your life standard Trust me……

Take a look for those millionaires in Singapore, which one never play or buy share? None……. See Mr. “Huang Hong Lian” buy a AIG share a week plus ago when the share price drop to US$10plus, within a few hours, AIG bound back to US $30 plus, he won a few million within a few hours and donated it all to LKK foundation. That applied that what I mention in the above rules.

At least do a small invest for a small better future What we earn now, not really enough to cover the inflation unless you earn $10,000 plus above per month. Or else, you still consider poor person in Singapore.

I am not say to promote the shares, but just share to you my experience how to getting richer and richer and to make your living standard better and better. Cheers....

It's not that I disagree. Different pple with different financial situations, different (education) backgrounds, have to manage their monies differently. That is why Insurance agents are later known as financial advisers / consultants. They have to do those surveys / assessments, before recommending the appropriate / suitable package / policies / amounts to the prospective.

Yr situation, even at age 14, u already have enough savings from yr pocket money to play in the stock markets. That shows yr family's financial situation. While many heartland SGPeans, their life / routine is caught within the cycle of "guay tao huan loh guay buay, guay buay huan loh eh koh guay!" Translated to english, it is "at the beginning of the month worries about end of the month, at end of the month worries about next month". Worried about whether enough $$ to sustain till end of the month, pay the bills, etc etc, end of month worry whether can cope or next month will be better or not.

Few years ago, there was a financial article, asking how many pple, how many SGPeans can tahan 3 months w/o a job & income? This is a good question. If 1 cannot tahan 3 months w/o salary / income, he is at high risk of getting into financial trouble! During bad times, job cuts, retrenchments, salary cuts, etc come to hit. This situation is not going to reverse overnight. It will take some time for the economy to recover.

Even for those who can tahan 3 months w/o income, ie, able to have regular savings, they may not have enough knowledge, nor the interest to plunge into the financial markets. But they certainly have their (other) means of making money, to be in that financial situation & status. While u were trained at a young age, and of course, with these postings, u certainly have the interests.

We cannot use pple like Oei Hong Leong, Wee Cho Yaw, LKY etc etc, to compare with the general public or the heartlanders. They are of a different category. Many heartlanders are worrying over their daily expenses & lifestyle, many even have problems with their utilities bills, and here u are telling them to invest in the financial markets? Basic needs / necessities are already an issue to them!

OHL, WCY, LKY etc are pple in the markets, in the industry, etc. Financial markets & economy is part of their daily jobs, so they certainly know better than ordinary heartlanders.

Having said so much, I am making 5 digit euros a month, I had quit SG several years ago, I may not be considered by most pple as in the heartland category, but I was once a heartlander, I'd been through it and I understand exactly what it's like as a heartlander. Though I'm not in the finance industry, my daily job involves interacting with economic situations & financial markets directly & indirectly in several parts of the world. With such interactions & access to the economies & financial markets, gives me the confidence to make my own analysis (based on my own observations) & plough monies into the markets. There's plenty of tools & instruments, ie, securities, futures, warrants, currencies, commodities, etc etc. U go talk to an ordinary heartlander not in the finance industry or knows nothing about Finance & Economy, u see if he'll be confused?

[jit singapore 1]

Dear bro 84 gunner, I understand what you mean. Thanks..... My point here just encourage everyone must do something / effort to make their live better if they can do something and also for their love family. Is not easy to live in Singapore.

That’s why I said if those ppls really very poor, tomolo eat what also dun know, then really can't do anything or do any invest.....too bad. But if they still afford (not really very rich) to make some saving every month, I encourage them to try their best to save the money as possible as they can and wait for the golden chance to come (like now) to create more wealth for their own benefit. Let say now they have $50,000 cash in deposit, now is the golden chance for them to create their wealth. They do not need any financial knowledge, just grab any share (not rubbish shares as I mention b4) and prepare to keep it for a few years, sure with 100% return. Their wealth will 1/2, double or triple up than now. This is one of the ways for them to double, triple up their wealth.

I always follow the rules: a) be patient wait the share drop and drop then I go in to grab b) do not greedy, when hit my profit target, quite. It the share keep up and up, I just pretent I never see c) keep "bullet" when share keep up and up, just keep "bullet" don't do anything and dun be greedy. Wait for the share drop again d) prepare for 1 to 5 years invest.

20 years over, I never miss or lose any single cents on the share market. Opposite, it makes my wealth double, double and double.

Unless those ppls want to become professional trader, then they need a very good and strong financial knowledge and background, or else down down down you buy, up up up you sell, sure win. If up up up you buy and down down down you sell (you know many ppls doing in this way), too bad, only can say sorry to them....

[84gunner]

Originally Posted by jit singapore 1

Dear bro 84 gunner, I understand what you mean. Thanks..... My point here just encourage everyone must do something / effort to make their live better if they can do something and also for their love family. Is not easy to live in Singapore.

That’s why I said if those ppls really very poor, tomolo eat what also dun know, then really can't do anything or do any invest.....too bad. But if they still afford (not really very rich) to make some saving every month, I encourage them to try their best to save the money as possible as they can and wait for the golden chance to come (like now) to create more wealth for their own benefit. Let say now they have $50,000 cash in deposit, now is the golden chance for them to create their wealth. They do not need any financial knowledge, just grab any share (not rubbish shares as I mention b4) and prepare to keep it for a few years, sure with 100% return. Their wealth will 1/2, double or triple up than now. This is one of the ways for them to double, triple up their wealth.

I always follow the rules: a) be patient wait the share drop and drop then I go in to grab b) do not greedy, when hit my profit target, quite. It the share keep up and up, I just pretent I never see c) keep "bullet" when share keep up and up, just keep "bullet" don't do anything and dun be greedy. Wait for the share drop again d) prepare for 1 to 5 years invest.

20 years over, I never miss or lose any single cents on the share market. Opposite, it makes my wealth double, double and double.

Unless those ppls want to become professional trader, then they need a very good and strong financial knowledge and background, or else down down down you buy, up up up you sell, sure win. If up up up you buy and down down down you sell (you know many ppls doing in this way), too bad, only can say sorry to them....

W/o any financial knowledge, just grab any share, how they know which are rubbish share, which are not? The way u say "sure", maciam u guarantee?

1 of the common problems with many investors is sentiments / feelings. They tend to panic-sell when the shares / market drop, or hold long long, hoping it will rebound soon. Or, follow the crowd & jump onto the bandwagon when the markets are going upwards. Then here, u said too bad. End up, these pple will say, "u intro me to invest in shares, say sure will make 100% profits, now I lose money, u tell me too bad?"

This is 1 of the key differences between the different categories of pple with financial / investment knowledge & those who dont.

Yes, life in SGP is not easy. Who to blame? Blame SGPeans for electing this Govt, for the way the Govt controls SGP, everyone is used to protected life in SGP, used to comfortable life, cant take hardship? Blame themselves for being born in SGP? Or consider themselves lucky they are not living in other countries of turmoil / poverty / famine?

[hamlinlau]

--------------------------------------------------------------------------------
Both Bro Jit and Bro 84gunner have good points.. Hope my summary helps highlight your points together..

MONEY MAKES MORE MONEY. One can never be rich if he has no money to start with.
Working for money (with a skillset) will only earn you a limited amount of wealth. To have wealth grow exponentially one needs to make one's money work. So always remember our 1st goal is not to be rich but to be financially safe and stable - to earn enough money to let it work for us

One is financially SAFE when he can provide for his family, pay his mortgage and go 6months without a job. 6 months is the average time to get a job. You might need a little longer in trying times like now.

Then one would strive for financial STABILITY. This means you have all the above, stashed away enough to send your kids to school (at least to NUS), a high end japanese car, 1 to 2 family holidays a year. You might want to put some more away for your retirement to supplement your CPF. If you ask me how much is sufficient? This is the standard I set for myself.. I am still paying mortgage, 3yrs car loan and 1 son and a working wife(lucky me) and I have enough to last 1.5 to 2yrs if I lose my job today (without my wife's income).

When you have all that sorted.. you can start deciding how much you want to spend for cheonging and how much to invest. I am a salary man and my salary cannot sustain my cheonging habits. I have chosen to spend 20-25% of my previous year's return to cheong. Might sound a little arrogant here but that's what I am doing

I follow the following rules when trading in any market - stocks, bonds, fx, structured notes, even in EPL/NBA/NFL.

1. Due diligence - I do your homework before entering any market. Understand how the instruments work and also the RISK I am taking. Understand the nature of the companies and what they do. Balance sheets, cash flows, assets vs liabilities, outlooks... Dont just follow what the brokers or RM tell you.

2. Prudence - Be aware of what's going on in the world economy. More often than not everything is inter dependent to one another. The chart may be telling you to enter a market technically but fundamentally it may not be the right time. And now even fundamentals are not working. Just FEAR in the current financial market. Entry point, time of entry point , latest information and the speed the piece of information reaches me... all these are vital to making money.

3. Discipline - 2 improtant rules. a. Prompt decision on a wrong judgement and to cut my positions without hesitation. b. always realize your profits when you have reached your target. Stop losses and targets are set before entry. Many great traders lose their discipline when things get heated up. I have made the same mistakes over and over again. One can say if you can have the holding power you can wait for it to come up. True statement but the opportunity cost is high cos you missed out chances to make more money.

EG.. I have some residual stocks mostly with my CPF(25k) back from 97. I held on to it and managed to sell it in 2004 for 33k a recovery of 8K on paper. Another investment of mine made 250% between 2002 and 2005.. So I would have made a lot more had I unwinded that old possition and placed it together with that new sum.

Bottom line is we should only invest with money we are prepared to lose and we must know the product we are investing in & its associated risk. We want to have a few good runs to boost the confidence but more importantly we want to have a positive P/L and reach our targets year in year out.

Disclaimers - EPL/NBA ... are at most calculated bets!!! Also, the terms Financial safety,stability and indepence are taken from some book I read some years back(trying to recall the title)

I hopw Sam wont zap me this time
cheers

[hamlinlau]

Originally Posted by 84gunner

W/o any financial knowledge, just grab any share, how they know which are rubbish share, which are not? The way u say "sure", maciam u guarantee?

1 of the common problems with many investors is sentiments / feelings. They tend to panic-sell when the shares / market drop, or hold long long, hoping it will rebound soon. Or, follow the crowd & jump onto the bandwagon when the markets are going upwards. Then here, u said too bad. End up, these pple will say, "u intro me to invest in shares, say sure will make 100% profits, now I lose money, u tell me too bad?"

This is 1 of the key differences between the different categories of pple with financial / investment knowledge & those who dont.

Yes, life in SGP is not easy. Who to blame? Blame SGPeans for electing this Govt, for the way the Govt controls SGP, everyone is used to protected life in SGP, used to comfortable life, cant take hardship? Blame themselves for being born in SGP? Or consider themselves lucky they are not living in other countries of turmoil / poverty / famine?

There would be many Warren Buffets if anything is 'for sure'. Hamlinlau Buff.. hahahahaahh. Nothing out there is for sure but there are proven track records that you can generate income from a stock market (even during a bear run) year in year out. My modest revenue from the stock market has been funding my cheonging life so far. Touch wood I dont have to change that.

I do agree there are uncles and aunties out there who do not understand various markets due to lack of education. I dont even expect the entire X and Y and Z generation for not being investment savy but they really have themselves to blame if they dont know about the opportunities out there.

If one does his homework he'll see the markets as investment opportunities. Without due diligence, the stock market is the fastest way to make you a bankrupt after fx and gambling.

As for life in Singapore.. I am just a PR so I wont comment but my Singaporean family is enjoying it.

[boysaigon]

[QUOTE=84gunner;3112947][QUOTE=jit singapore 1;3112572]

We cannot use pple like Oei Hong Leong, Wee Cho Yaw, LKY etc etc, to compare with the general public or the heartlanders. They are of a different category.

Well said bro.

Even GREAT organisation like GIC and Temasek made huge losses with their investment in foreign banks...and we should not doubt if no homework was done...OHL bot AIG..and made good and double quick returns...what about those who bot Lehman at say 7 and just to see their investment shrunk to a tiny fraction of that?

even a proper investment strategy needs the blessing of Mother Luck. High Note (DBS) and Minibond (Lehman) all went belly up.

I follow simple rules when investing. 1. Buy companies that make money for at least 3 years (many lah). 2. Buy companies with good (not absolute) monopolistic power (Eg. SPH) 3. Buy companies that i can understand (few lah)

these are not new rules and surely not a sure-win ones but it does give u a good night sleep if you dont really bother by the daily ups and downs.

market timing is risky to say the least...and usually not so reliable unless coupled with other 'rules'. If not it is just another simple no-brainer like buy-low-sell-high...but who know when is the low and when is the high. There are good reasons for a share to be in their low/high price position...so the low may just get lower and high higher for the matter...

just my 1.5c

[jit singapore 1]

Well said and well explaination bros

For me till now I still holding my rules and regulation:
a) Buy when share drop
b) Be patient wait until the share drop and drop. Don't buy any share when the share booming up.
c) Try to save $$$ every month as much as possible
d) Not be GREEDY, sell all the shares when "bull" come. After selling all, even market still going up, don't look back and don't care how it goin up. Keep your "bullet" waiting for "bear" come.

My grandny now is 88 years old, no education but is an expert in share market. Never lose any single cents by using the above rules and regulation.

Above just my personal experience. If you want to buy share, please follow the above rules, you'll be never lose.......Good luck

[hamlinlau]

[QUOTE=boysaigon;3113800][QUOTE=84gunner;3112947]

Originally Posted by jit singapore 1

We cannot use pple like Oei Hong Leong, Wee Cho Yaw, LKY etc etc, to compare with the general public or the heartlanders. They are of a different category.

Well said bro.

Even GREAT organisation like GIC and Temasek made huge losses with their investment in foreign banks...and we should not doubt if no homework was done...OHL bot AIG..and made good and double quick returns...what about those who bot Lehman at say 7 and just to see their investment shrunk to a tiny fraction of that?

even a proper investment strategy needs the blessing of Mother Luck. High Note (DBS) and Minibond (Lehman) all went belly up.

I follow simple rules when investing. 1. Buy companies that make money for at least 3 years (many lah). 2. Buy companies with good (not absolute) monopolistic power (Eg. SPH) 3. Buy companies that i can understand (few lah)

these are not new rules and surely not a sure-win ones but it does give u a good night sleep if you dont really bother by the daily ups and downs.

market timing is risky to say the least...and usually not so reliable unless coupled with other 'rules'. If not it is just another simple no-brainer like buy-low-sell-high...but who know when is the low and when is the high. There are good reasons for a share to be in their low/high price position...so the low may just get lower and high higher for the matter...

just my 1.5c

One... I was very surprised people get involved in the Minibond!!!! Although Lehman's rating was holding, it was all over the news that Lehman was looking for fresh funds since the demise of Bearstearns in March. Before that there were news on Citi,UBS and Merrills...
It shows how little people in Singapore knows about the Credit Market.

[hamlinlau]

Originally Posted by jit singapore 1

Well said and well explaination bros

For me till now I still holding my rules and regulation:
a) Buy when share drop
b) Be patient wait until the share drop and drop. Don't buy any share when the share booming up.
c) Try to save $$$ every month as much as possible
d) Not be GREEDY, sell all the shares when "bull" come. After selling all, even market still going up, don't look back and don't care how it goin up. Keep your "bullet" waiting for "bear" come.

My grandny now is 88 years old, no education but is an expert in share market. Never lose any single cents by using the above rules and regulation.

Above just my personal experience. If you want to buy share, please follow the above rules, you'll be never lose.......Good luck

Bro Jit... I do applause your 'general' advice to masses to save money and be disciplined when trading in stocks. Simply to 'buy low and sell high' is not the best way to encourage people to enter the stock market. You are not being responsible these areas.

1. buy low - very good idea but you did not say what to do when the prices go down another 20-50%.. People will panic. And if you dont do your homework they might buy into companies that are in the red..

2. You never once highlight to the masses the holding period.. even my 8yr old son (after playing some computer games) can tell me to buy and hold cos he understands what goes up will come down.. but I had to tell him in the stock market what goes down can go down further and then get delisted or bankrupt.
Even if you do make money for a particular trade, it does not necessarily equate to you making money. Simple example - you invest 10k in a stock and it stayed in the negative zone for 3 years and you get out on the 4th year at 12K. Yes you made 2K profit. As a seasoned investor I say that's a stupid trade. 4yrs you made 2k with 10k capital on a bear turn bull market is peanuts! Your risk reward ratio to hold that stock for 4yrs is nothing.. I would say I get better ratio betting on some EPL games!

3. 'You never lose' this sweeping statement took away all the creditability you had gained so far. Not even George Soros nor Warren Buffet dare to make such statements. I have nothing to say to that...

If you really have the intention to share your experience here you would be more detailed in your statements. Support your principles with some fundamentals or strong arguments. The more I read on your post the more I feel that you are just trying to feed your ego here. All I can say is that most of the people here are a lot smarter than you think. Correct me if I am wrong here....