How Dennis Avoided Stock Market Crash in year 2008 and he can teach you too...
The posting below was written by me in Jan 2008. At that time, people were arguing that we should stay invested and not sell away stocks.
History speaks for itself.
Those that think this way saw their stock portfolio falling over 50% in year 2008, while becos I sold out most of my stocks in year 2007, I avoided the stock market crash and kept my wealth intact when the Global Financial Crisis hit in year 2008.
Observe nature, nature has its 4 seasons, its Sun Rise and Sunset. Similarly, the stock market has it Bull and Bear Markets. If during Summer (Bull market) you did not try to sell out and build reserves, when Winter (Bear market) finally comes, you might not last through the Winter and might be "frozen to death".
Once you figure this out and start practising Market Cycle Investing, then you might find out, just like I did, that making money from Investing is actually very Simple and losing money is very, very difficult.
You can now learn from Dennis on the "Secrets to Making Money in Stocks"
Date: 2 full-days on 27_and_28_Feb_2010
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Time : 9 am to 6 pm. (Registration at 8.30 pm, seminar starts at 9 am).
Venue: SMU, School of Economics and Social Sciences,
Level 5, Classrom 5.2,_90 Stamford Road
(Opposite Rendevous Hotel)
If you drive, please park Rendevous Hotel, Plaza by the Park or YMCA.
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Secrets to Making Money in Stocks_Seminar_
Should you invest into Gold and Silver? (Bonus/additional material)
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What are the factors to consider when investing into Gold and Silver? (Bonus Material)
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How to Prepare and Analyse your own Financial Statements
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How to assess your own Financial Health
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How to Prepare and Analyse Company’s Financial Statements
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How to assess a company’s Financial Health
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What are the common “tricks” listed companies use to “beautify” their Financial statements?
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What are the warning signals of a company using Financial Analysis?
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Learn the Practical_tools of Fundamental Analysis of Stocks
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Learn the Practical tools of Technical Analysis of stocks
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Learn how to decide what stocks to buy using Fundamental Analysis
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Learn how to decide When to buy and When to sell by using Technical Analysis
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How to combine the teachings of Warren Buffett, George Soros and Jim Rogers in making money from stocks?
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How to identify trends using Technical Analysis?
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The Psychology of Investing. How to be ahead of the market using Psychological Investing?
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If the results of Technical Analysis and Fundamental Analysis differ, what to do?
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Sharing by_Dennis on 3 successful stock investment strategies he used that have netted him over 100% returns_time and again.
[quote="Dennis Ng"]FACT: I'm ahead of most people who bargained hunted in the last 2 months only to see their stock portfolio dropping by 30% to 70%.
FACT: even if I missed the bottom, I'll still be ahead of these people who bargained hunt in last 2 months.
Observation: All the Rich people I know, (including Warren Buffett and George Soros, Li Ka Shing, etc, etc), HAVE Opportunity Fund. In other words, they typically do NOT invest 100% in the market 100% of the time.
1.5 years ago, I was almost fully invested. 80% in stocks and only about 10% Opportunity Fund.
Today, I'm only 20% in stocks and holding 30% Opportunity Fund. My Opportunity Fund will jump up to over 60% after I sell my investment property.
I know "market timing" over short periods of say 1 month and 1 year is almost impossible (well, why almost, becos some traders tell you they can do it, not me though).
However, it is possible to look at the BIG picture and roughly know "at which stage" of the "economic cycle" and "stock bull market cycle" by just being OBSERVANT and KEEPING UP-TO-DATE on World's events.
In my opinion, it does NOT take Rocket Science to do that (roughly estimate at which part of economic and stock market cycle we are in). It does NOT require HIGH IQ (my IQ is average, don't think can qualify for MENSA)).
Well, it might be possible that I'm JUST LUCKY. And I have to say that everyday I express gratitude for being blessed.
I used to think Buy and Hold is the way. However, after the run-up in stock prices from 1998 to year 2000, the Tech bubble burst thereafter (and down market from Mar 2000 to year Mar 2003), after I reviewed my position I realised that I'll be MILES ahead had I sold most of my stocks in 1999, rather than holding on to them "through thick and thin" through the entire Bear Market (year 2000 to year 2003).
I exhausted all my Opportunity fund in year 2002 (after Sep 11, I thought what else can drive the markets lower?) Well, I didn't manage to pick the market bottom then (I don't think I can do this in future as well).
However, the FACT is it does NOT make a BIG difference. The stocks I bought in year 2002 still went up 100% to 300% in the Bull market that followed (year 2003 to year 2007) and by taking profits (last year), I've protected my Gains (paper gains converted into Realised Gains).
Of the stocks I still hold today (20% of my investible funds), most of the GAINS have evaporated in the last few months. If I had done NO selling and still hold 80% in stocks today, I would have just taken a "roller-coaster ride" (down, up, back to down again) with NOTHING much to show and my Networth would not have increased much.
On the other hand, my current position is that I've managed to triple my Networth in the last few years.
At the end of the day, each of us must know our own strengths and weaknesses. We should be investing so that we have an edge, and not investing at our own disadvantage.
Know yourself, know the enemy (Market) and you can win more battles than you lose. (slightly changed from Sun Tzu's actual words).
Remember, our OBJECTIVE. Our Objective is to Win the War (NETT-NETT better financially) and not trying to win the next battle and definitely not trying to win "every battle". (As Peter Lynch reminded, we can be wrong 4 out of 10 times and still become Rich).
I'm just an Average Singaporean on my own investment learning journey. Just sharing my thoughts with the general public. I'm not here to advise anyone to buy/sell/hold any stocks.
Remember, it is perfectly OK for you to have a different opinion. The PURPOSE of a Discussion Forum is to draw out different views and opinions. We don't need this forum if everyone agrees with us, right?[/quote]