This week, we are very please to introduce Cheng ..

Investideas: Why are you using this nick and what does it mean?

Very easy question, this is my last name.

InvestIdeas: What can you tell us about your background?

I am still a student, studying Physiotherapy which is in the medical industry.

InvestIdeas: How long have you been investing / trading?

I started exploring personal finance stuffs when I was around 18-19. The first book that started me thinking, was “Rich Dad’s Guide to Investing” by Robert Kiyosaki, the author of “Rich Dad Poor Dad”. Ironically, I did not read his first book, the “Rich Dad’s Guide to Investing”. It was all I need to introduce me to the investment world.

I remember he talked about different investment vehicles like stocks/bonds/financial derivatives, real estate and your own business.

I paper trade for around 2+ years and in 2007 Feb I fired my first bullet with my personal savings over the years. Long story short, I have around 2.5 years of paper trades and 3.5 years of real investment experience.

InvestIdeas: What is your Investment Strategy?

My investment strategy has changed and adapted according to my personal needs throughout the years. I started off with value investing. Gained knowledge from investment blogs like “Eight percent per annum: Value investing in Singapore stocks”, “extraordinary profits” and Musicwhiz’s blog.

With the help of investopedia, it helped me better understand value pararmeters better, their advantages and limitations. I have also read all of Buffett’s partnership letters when he first started out and “The Intelligent Investor” from Benjamin Graham. All the above has helped me form my foundation in investing as a whole.

To further improve, in 2008-2009, I explored Technical Analysis. It forms the basis for my buy and sell decision on price action. It is also a diagnostic tool to detect what the BigBoys are doing through high volume action and past price action.

As of now, my buy entries have improved over time with the help of both 80% FA and 20% TA. However, my selling decisions are lousy as usual. Anyway, it is not always possible to get the timing right when the market is at it’s euphoric mood.

InvestIdeas: What are your favorite books on trading/investing?

1) Security Analysis (Very technical but interesting)
2) Reminiscences of a Stock Operator (Very interesting book, described the emotions and ups and downs on the life of Jessie Livermore, a trader’s life.)
3) Warren Buffett partnership and Berkshire shareholder letters. (Over the years, one would have noticed how Buffett has adapted to changing market conditions and evolved as an investor. He is a lot more sophisticated than you think.)
4) I also hope to pick up Option Trading from J.L. Lord when I have a bigger account size. He has written 4 books in total. The best is “One strategy for all markets”. Sounds good heh?

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