Met up with couple of my friends to have beer in a Kopi shop, and I was thinking to myself how we have evolved over time. We used to drink at pubs when we were younger and now guess beer is much cheaper in Kopi shop and nicer place to have a decent conversation too. As usual, part of our conversation was about investing. My friend, whom has just finished reading a book 'Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School', by Andrew Hallam, was wondering how best the portfolio can be created.
I shan't be talking about how one can create the composition of the portfolio as that is already mentioned in the book and serveral blogs as well. Instead, I will share how one can buy/sell mechanically for your STI ETF portfolio.
Looking at the chart above, it does show that STI is now on the high side, at most maybe another 300 to 500 points more. So is this the right time to start or even addon to your portfolio? By using mechanical method, you rule out your emotion in your investment. Here is how:
Below 1350 BUY
1350 to 1700 Buy 3 lots
1700 to 2000 Buy 2 lots
2000 to 2350 Buy 1 lot
2350 to 2700 Sell 1 lot
2700 to 3000 Sell 3 lots
Above 3000 SELL
So now is it the time to buy? Patience is the key