Is AK the investor right 6 times out of 10?

Recently, I got many more messages from readers on stocks I have blogged about.

Please remember don't buy or sell something based on what a blogger says. 

Always do your own due diligence.

If you feel uneasy, it is possible that you didn't know why you "invested" in something or you could be over invested.




1. 
If you didn't know why you invested in something, you might want to get out. 

You are not investing. 

You are gambling.

"Wah! AK says 8898 4D can tikam and really 3rd prize! This stock he says he is buying sure to win!"

Sounds like gambling, doesn't it?




2.
If you are losing sleep due to an investment, you might have invested too much, you might want to reduce your exposure.

"AK invested $100K in the stock. Must be safe!"

What is the percentage of $100K in AK's portfolio and what is the percentage of $100K in yours?






I always say that I am lucky that I have been right more than I have been wrong. 

My luck is not so good that I am always right.

Have I been right at least 6 times out of 10? I hope so.

Remember the $100K lesson from Marco Polo Marine.

It is important that if we should be wrong, the mistake does not sink our ship.

You are not me and I am not you.

Don't follow me.

If you must follow, don't do it blindly.

Read:
AK the investor in 7 chapters.

Sharing of anti-government websites.

Please do not share anti-government websites on my FB page or blog, especially those which oppose policies with spurious arguments.

From time to time, I had to delete such links.

These websites do nothing but to encourage ignorance and fan the flames of negative sentiments.




I welcome discussion on topics such as the CPF but not when it is apparent to me that the other party is opposing for the sake of opposing and using arguments which appeal to the heart and not the mind.

I said this on my FB wall just now when a reader posted a link to an anti-government website:

"No sharing of links to anti-government websites on my FB wall, please.

"Especially not those that do not even understand that an annuity (like CPF Life) is one of the best ways for most people to fund their retirement in their golden years."




Many of such websites are just out to sensationalize issues. 

They are more interested in pandering to an unhappy group of people.

Why not make an effort to understand how to make the system work for us instead of being frustrated and unhappy?

Worse, why make other people frustrated and unhappy?




Or are they quite happy with having a frustrated and unhappy audience they can pander to?


Or do they have a motive for making people frustrated and unhappy?


I don't read rubbishy stuff posted on websites like "Zhun Bo Singapura", do you?

Alamak. Don't.




Related post:
Would you rather have it or not?

"Purpose of CPF is to make the rich richer."

Reader:
My view is. Cpf is workable for rich ppl ......high educated/ professionals group. This system can help them richer.

It’s not really help those below average. Only can make sure they got food when they old n can’t work. No luxury.

In other word, cpf is workable for those above average n PR. But not for those below average Singaporean，who really need money to survive ( except 月光族）。So, what is the main purpose for CPF ?

AK:
Your question is rhetorical because you gave your answer in your first paragraph. So, is the main purpose of the CPF to make the rich richer?

The CPF is meant to help the masses. 

It is not meant to help the rich.

This is quite obvious when the CPF has annual contribution limit and a limit to top ups to the SA and RA. It prevents members with a lot more cash to exploit the system.

This is quite obvious when the CPF gives 2% more interest for the first $30K and 1% more interest for the first $60K of CPF savings. It is to help members with less savings.





The real problem lies in the lack of simple financial prudence and basic financial literacy amongst the masses.

Lacking in simple financial prudence, they spend all the money they make or more than what they make. 

They are too easy with spending money.

Lacking in basic financial literacy, they allocate capital foolishly. 

Some losing money to simple scams like magic stones or elaborate scams like PONZI schemes or buying expensive financial products or locking up funds in illiquid non-productive assets.






The CPF is a system that is meant to help the masses to help themselves.

If we think the system cannot help us, it is probably because we have not tried to help ourselves.

Of course, there will be some who are physically or mentally handicapped and these are people who genuinely need help. 

They cannot help themselves.

However, for most of us in Singapore, we don't really have anyone to blame but ourselves if we languish in poverty.





Read a couple of emails from readers who have helped themselves:
Power to become financially stronger is within us!

Chatting and charting in "Evening with AK and friends".

I hope that everyone had fun at "Evening with AK and friends" and, of course, I hope it was helpful in one way or another.

"Evenings with AK and friends" are chit chat sessions of epic proportion and this was probably the largest ever session as we had almost 100% attendance (160 strong audience). It felt a bit crowded and very warm!

We chatted about stocks, CPF, insurance, real estate and dieting. Yes, dieting too. Basically, anything I have blogged about was fair game.




I was surprised that almost everyone stayed until 10 pm when we called it a night. So, I guess it must have been fun. Learn nothing, never mind. Must at least be fun. Right?

A few readers made me work overtime. You know who you are. Ahem.

I also spent quite a bit of time talking about Technical Analysis (TA) this time. Here is the blog with the recommended books:
http://singaporeanstocksinvestor.blogspot.sg/2012/12/recommended-books-for-fa-and-ta.html

More recommended books in the right sidebar of my blog under "Food for thought".

A recent example of TA in my blog:
http://singaporeanstocksinvestor.blogspot.sg/2017/09/technical-analysis-of-comfortdelgro.html




I am not trading ComfortDelgro per se but the chart is helpful in showing where the supports are.

If we want to make some money trading stocks, we should learn TA. If we don't know TA, we are fighting blind.

Having said this, remember that TA is not the Holy Grail although some might think it is. 

TA gives us a glimpse into Mr. Market's psychology. 

TA is about probability and not certainty.

A stock can stay oversold or overbought for a long time. Refer to MFI.

A negative or positive divergence can have longevity. Refer to price, volume and MACD.

Always pay attention to the trend.

Fibonacci lines show us the support and resistance but not if they will hold or break. Look to the golden ratios 38.2%, 50% and 61.8%.





I joked that talking too much about TA diluted my reputation as an investor for income. Some might remember that I have revealed in my blog that I made a bit of money as a trader before. So, it really shouldn't be surprising.

Trading was helpful in growing my capital.

Refer to point number 5 in this blog:
http://singaporeanstocksinvestor.blogspot.sg/2015/06/how-did-ak-create-6-digits-annual.html





Finally, remember, that not everyone has the temperament to be a trader.  I feel that it is fair that I say this again after sharing about TA and trading in this session.

TA and FA are useful but the most important knowledge is self knowledge. We have to know ourselves.

Related post:
When to buy, hold or sell?