Investment Strategies 01 (Nov 08 - May 10)

[winston]

Reminder to myself:-

1) KISS - Keep it simple stupid !
2) Buy Low; Sell High
3) Sell High; Buy Low
4) Which is easier, "Buy High, Sell Higher" or "Buy Low, Sell High" ?

I'm starting to realize that Jim Rogers has a good point. Wait for the market to put the money for you at the corner. And all you have to do is, to simply go over there to pick it up...

And from WB, imagine you can only make 20 decisions in your life. Make sure that those 20 decisions matters.

Dont run around like a chicken. Be like a tiger. Wait & Wait. And then strike when all the stars are lined up for you. If they are not lined up, then wait. Instead of running around like a chicken ...

[LenaHuat]

Hi Winston
No need to be a tiger or chicken.
守株待兔

[kennynah]

yeah...sounds like a plan... now i have to go find a shady tree....with some "interesting" magazines to past time while waiting for that rabbit to "long chiu"...hahahaha...

[LenaHuat]

Buddha attained enlightment under the Boddhi tree. MJ wrote many parts of the song "Children of the World" whilst perched on the oak tree in his NeverLand ranch. Stillness, long periods of it, are required for one to crystallize one's thoughts steadily.

[kennynah]

yeah.... even in Christianity...it is said that one needs to be STILL and listen....

[Aspellian]

Issue is i usually follow trends .. who i define a change in trend . .probably the difference between the previous high and lows .. assuming if the movement is more than 10% away from the previous high/low based on the difference then i would consider short ... likewise viceversa

In summary, you based on a overall market trend - eg. uptrend or downtrend.
If during an uptrend - eg. the market dropped 10% - and assuming that there are no signs pointing to a downtrend, you will actually buy Long. vice-versus for downtrend.

Is there a systematic way in which you determine whether its up or downtrend?

[HengHeng]

nope .. look and feel .. LOL

[Aspellian]

nope .. look and feel .. LOL

look at which part and feel where?

[winston]

TOL:-

Market taking a breather today..

Buying on dips have worked very well since March 2009. Can you continue to buy on dips ?

No catalyst for a steep drop yet. Maybe some profit-taking here and there..

[Aspellian]

Even though market taking a breather - it can also be a case of investors accumulating stocks.
Agree that there is no catalyst for steep drop yet.
Remembered an economist talk sometime back that interest rate of bonds will shoot up in near future (as US continues to print) and bond price will collapesed and affect stock market. But it will be a sharp drop plus recovery. this could be a catalyst to look out for.