Update on my stock investment

I have not been writing for this blog for a while and it is timely to give an update on my endeavor.

For fear that we are at the tail end of the bull market, I have scaled down my investment substantially and this has caused me to lose a big chunk of the juicy profit as the stocks I sold have surged substantially in prices. Nonetheless, I was trying to be prudent and was prepared to sacrifice the short term gain for even bigger gain in a longer time horizon.

I have placed about 50% of my fund in time (fixed) deposit and limit myself to invest in stock to no more than 1/3 of my fund. The rest of the fund stays in my SRS and saving accounts and; if necessary, I could use them for stock investment and increase my stock investment limit to 50% of my fund.

I have taken the opportunity to learn and experiment with a new stock investment strategy, which has proved to be a very good and lucrative strategy. As this strategy is applicable to an experienced and more sophisticated investor, I will not share it here. When you think that you are ready to find out the strategy from me, you may approach me and I will share it with you privately.

With a combination of my old value investment strategy and the new strategy, my portfolio return YTD (year-to-date) is 1.8% of the entire portfolio size or 4.9% of the limit I set aside for stock investment (i.e., about 1/3 of my portfolio size). The return would have been much higher if not because of a couple of silly mistakes I made.

Apart from wealth accumulation, stock investment is also an exciting game to me where I pit my skills and wits against other market participants. The more skilled I am and the more effort I put in, the more successful I will be. I also recognize that there are many landmines in stock investment; hence, I have to watch my steps carefully.

Stock investment does need a lot of effort if you want to achieve a high return of, says more than 15% annually.  Nonetheless, the effort for making a modest return of between 5% to 10% annually is significantly less. As such, one has to be passionate about stock investment in order to be able to set aside time from the already busy job and family commitments.