My Methods Has Evolved Since...

Ever since I have joined some of the Facebook Groups and follow some of the experienced traders, my methods has changed.

Rather than just solely looking for at value investing shares, I look at:

1. News - On future opportunities 

I have talked about AIIB, Japan Investing in Asia and ICT Tenders (Read here Part 1 & Part 2).

Now I have found other interesting news as well.

Singapore building an Indian City - Blue Chips will definitely get involved. But how profitable will it be?

Sembcorp Intention of Buying 1MDB Edra? - Opportunity or Political Move or Something in the dark we don't know? My view is that most probably they intent to expand their utilities unit in view that Oil and Gas is not doing well.

Greece Risk Timeline - A matter that will create shock wave across the world.

I always view these news as opportunity rather than risk. If its risky, invest after that event as blue chips tend to fall. If its opportunity, invest before it happen as these events will act as an catalyst.

2. Technical Analysis - Looking at Charts.

As you have read my previous post, I may have made a better judgement if I knew about the "support" price of Starhub and even Singtel.

You may not need to wait for it to touch the "support" price - But you can look at it and understand the risk you are taking or rather buy it when its near the support price.

However, if you are looking at pennies, value investing methods is still preferred.

TA is more for blue chips in my opinion.

3. Accumulation Instead of Diversification

I have always try to look for "new" value stocks rather than accumulate. This is because I am always thinking of diversification but never knew how many stocks I should have.

After reading these articles -

How Many Stocks You Should Own In Your Portfolio?

Value Investing and Diversification – How Much Do You Need?

I decided to keep to 10 to 12 stocks in my portfolio and then look at accumulation rather than new opportunities.

Conclusion

I am a Singapore Stocks investor. Not yet a global platform investor. It is really hard to find "value" stocks opportunity here in Singapore. In addition, Singapore STI is still significantly high. Thus, I believe it is required combine value stocks with passive income stocks, and add a little Blue Chips in your portfolio to receive capital gains and dividends for NOW.

Singapore investors also need to be flexible (Enlarge Your Pie, My Approach, Power Stocks) BUT without compromising their core values.

Note: Yet to find time to talk about my new portfolio. Sorry guys...

Comments