Tuesday, December 13, 2016

Investment rules for myself to obey in 2017

I realized I have been rather trigger happy. I am going to set these rules for myself for 2017

1) Any buy entries must fulfilled one of the three investement theories. A cyclical recovery play, growth drivers play or strong FCF, negligible debt yield plays.
 
2) All entries must come with a potential exit plan with potential reward. POTENTIAL reward should not be lower than 35% in a entry, to accord for the macro risk that this bull market it marching into its 9th year. 

3) 2017 to exit when potential is met regardless of how well market/ sentiments is doing. 

4) If there is no potential buys that meet the above one or more 3 criterias, than 2017 should be the year where cash goes to 50% of portfolio. 

5) Final most important rule: Obey all rules and accept opportunity cost loss, aka money not earned. Treated it as emotional/ zen training test. 

I have been trimming dead leaves (borrowing and adapting from Farmer), I have sold Lippo Mall Retail Trust and M1. Cash is slightly above 40% of portfolio with the sale and small capital injection of 2K (winks)

14 comments:

  1. Hi SI,

    Mine is also about 40% after trimming some. Have not cash injection for 2 months cos of no work haha :)

    I think you'll still break some rules haha! If that happens what will you do?

    ReplyDelete
    Replies
    1. LP,

      Hmm... why u so no faith in me! Sobz ... if I break the rules I will chop finger!!

      Buy some lady fingers so they become my "fingers", then I chopped some ...

      If I don't break it, u treat me coffee??

      Actually, quite easy not to break the rules la, how do we define40% potential gain? We assume the best lor lol...

      Delete
  2. Haha, break the rules doesn't mean won't make money ;) Sure, treat you coffee is anytime one, no need conditions :)

    ReplyDelete
    Replies
    1. True, totally agree.

      I am just wondering what I am settling for 20-30% profit with potential 50-70% fall, aka bear arrival.

      Can bull run another 2 years? Maybe ... I start to think I am rather silly. Lol

      I cannot pick stocks like most bloggers or professional, so I think I can just hope to do slightly better when durian season comes. I need not a big fat bear to start accumulating again

      I think if sTi goes to 2500-2600, more cash will properly be going down quite quickly

      Delete
  3. Somebody is finally doing spring cleaning!

    Get rid of dead leaves and weeds ;)

    I'll be surprised if you can spot any potentials that can go up 35% in one year amongst the big caps for 2017.

    Penny stocks, well, maybe ;)



    ReplyDelete
    Replies
    1. 2017 is Bull into its 8th years run. Steady!

      Delete
    2. Smol,

      I am not actually looking at a 1 year time frame for 35% gain. I am thinking about for the catalysts to pend out ... I thinking of the no. Of years a company might do well.

      I do think 2-3 companies are potentials for 40% gain when all catalysts (including good earnings play out)

      Delete
    3. CW;

      If we count 2009 as the start of bull run; since march 2009 is the bottom, 2017 is the 9th year

      Delete
    4. Sillyinvestor,

      Oh! 35% gain is without a time frame???

      Then I take it back.

      Like that, every stock has the potential for a 35% "gain" if we wait long enough...

      ;)

      Delete
    5. Smol,

      There are some rotten fishes that I bought at too high a price. What to do? Throw them away, or buy salt and salt them and eat them much later.

      LMIR is a salted fish ...

      Eat with porridge every morning good. Lol.
      I have Lee metal also another salted porridge

      Delete
  4. Hi SI

    So strict rules?

    Keep on refining the process. Sometimes standard SOP process may not necessarily work well. I'd rather you be adaptive yet self awareness of what you are doing ;)

    ReplyDelete
    Replies
    1. B,

      Strict? Hardly ??

      I am quite free spirit ... as u can see I mostly all agar agar du...

      So within the rules, the are plenty of room to manipulate and perhaps also loopholes to exploit hahahahaha

      I just dun want To be in the situation where u have no cash at all when STI is at 2400

      Delete
  5. your rule can also become my rule. hahahaha

    ReplyDelete
    Replies
    1. Yeh,

      Hmm... u mean u want to follow my rule too? Sure man, must pay me royalties ok lol.

      Your shifu will be jealous when he read this a not muhahhahaa

      Delete