DO'S
- If you're to follow my 'tips', do have patience for the price to appreciate. I'm more of a Value Investor rather than a Day Trader and my investment approach is Medium to Long Term (3 months to 1 year and beyond). Therefore, you might have to wait about 3 months for my recommended stocks to appreciate in value. So far, all my 'prophecies' are fulfilled in less than 3 months =P
- Do continue to save money to invest in shares. By doing so, you'll be ready to 'ride the boat' whenever a new investment opportunity arises. Also, having some spare cash allows you to average down your share if it goes down after you have bought it (provided that the company's fundamental is still good).
- Do read my Disclaimer at the bottom of this blog ;-)
DON'T
- Don't invest with money that you need to put food on the table or pay your bills or with loan money. Especially don't borrow from "Ah Long" to play shares because if you loose money in shares, "Ah Long" will chop off your hands and whatever that can be "chopped". If you invest in shares using money that you need in the short term or borrowed money, your investment decision will be very much subjected to your emotional feelings. You could easily throw rationality out of the window and Buy/Sell the wrong stock at the wrong price. If you are to follow my 'tips', you should only invest with extra cash that you don't need to use in the medium to long term because my investment approach is medium to long term.
- Don't put all your available investment money in one lump sump into one single stock. You should not have more than 30% of your share portfolio invested in one single share. I encourage that you diversify your investment into 8-10 stocks so that if 1 stock collapse, it will not significantly reduce the net worth of your share portfolio. So far, I've given Buy recommendation for 3 stocks ever since I started this blog in September 2009. More will be coming whenever the opportunity arises ;-)
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