Thursday, September 4, 2008

Investing Without Emotions

Have you read Prof Chan Yan Chong's latest article in the online Share Investment Guide? Now, I can only read it on Wednesdays instead of Saturdays with my free online subscription. Maybe got paid subscribers complain?

I do agree with some of his views. Key points in my view:
  1. Wealth can affect Health – holding on to shares and seeing them dropping in value can affect one emotionally – mental health – so unhealthy!
  2. Super-rich stock up on cash – headlines in MYPAPER My Money Section. Prof Chan feels ideally one should hold 70% cash and 30% shares which are low in P/E.
  3. Need EQ to survive this bear market?
  4. 10 years holding power - Warren Buffet say you should not be owning stocks if you do not intend to hold them for more than a decade. Oh no, dun know whether I will still be alive!

Wow, 10 years holding power – that does coincide with my Stock Market Forecast for Next 8 Years! - 7 years to bottom + 3 years bull run = hopefully got profit?

"Mr Market has never failed to recover from every setback. But not so for individual stocks!” Never discuss your stocks with others as it will affect your emotions, thus your decisions.

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