Saturday, August 22, 2015

If you already set your GPS, just follow it


If you already have a plan, the path before you is already defined. It doesn't matter that you can't see what is ahead right now. Follow through on your plan.

Just trust that you had studied well and applied that knowledge to craft out a good plan.

I am currently enacting out my STI ETF accumulation plan. This will help me overcome psychological fear of investing in a falling market. The principle behind it is based on value averaging and it is a very sound principle, especially when applied to an investment vehicle like the STI ETF. The further a market drops, the more you should buy.

Don't be mistaken, value averaging is not the same as dollar cost averaging. It is far more superior.

I've already hit the 2nd trigger in my plan, which is the -15% drawdown from ATH. I managed to queue and get entry prices below my targets, so I currently hold 300 shares of the STI ETF with an average price of $3.047. I am eager for the STI to drop more so that I can buy more.

I hope that we have a global crisis. I want our stock market to crash. I taunt and I welcome the bear.

Put on your helmet. Fasten your seat belt. Brace yourself lads, this might be a bumpy ride.

Bring it on, smooth seas never made a skilled sailor anyway.

If you can't handle the heat, get out of the kitchen.

10 comments:

  1. Thanks GMGH. Your article, especially your first line gave me a bit of motivation to carry on, not just in investing but also in my super hectic uni life right now. I hope we will come out of this as superior sailors. Cheers

    ReplyDelete
    Replies
    1. Cheers Anon, let's make it out of this storm together.

      Delete
  2. Awesome! We need people who dare to face the market like that! Thanks for giving us the much needed motivation to carry on!

    ReplyDelete
    Replies
    1. Hey Aloysius, if you're going through hell, the best advice I've heard is to keep on going! Have patience and look at the long term!

      Delete
  3. I share the same sentiment as you. Accumulate the STI ETF is my plan as well.

    ReplyDelete
    Replies
    1. Hi PI Trooper, the STI ETF is a good and classic choice for the long run, let's do this!

      Delete
  4. Hmmm.... not doing your stock picking, from your portfolio, you seem to like to pick stocks.

    Why doubling down onSTI ETF?

    Smi)e remember me

    http://gotmoneygothoney.blogspot.sg/2015/06/why-buying-index-can-be-bad.html

    ReplyDelete
    Replies
    1. Hi Smi)e,

      Maybe you did not click my link to see more details. I am accumulating the STI ETF for my mother's and sister's portfolio, which is a low-risk and low-returns portfolio.

      For my own stock picking, I am still waiting with plenty of ammo. Markets are plunging, what's the rush? The STI as a whole is not attractive to me still. I definitely much rather buy individual names.

      Are you trying to prove your point that your DCA STI ETF with post lion-filled stock picking is the best strategy?

      Delete
    2. hmmm... since you do both stock picking and DCA of STI ETF, it will be wonderful if you can do a post on the comparison between a STI ETF strategy vs active stock picking.

      As of 25 Aug 15
      STI ETF (300 shares) vs Stocks picking (0 shares)

      Smi)e.

      Delete
    3. As of 25 Aug 15
      STI ETF (300 shares) vs Stocks picking (0 shares)

      STI ETF: -2.2%
      Stocks picking: no loss

      Delete

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