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Saturday, November 21, 2009

My Money Allocation

A little spider web/mind map on my money allocation.



Savings include funds in money market fund as well.
Profits from trading baskets can be directed to the dividend and investment baskets, or stay within the trading basket.

I trade mainly with the dividends I received. Therefore, any losses would be, to me, a return of profits/dividends to Mr. Market. Of course, prudence is required in trading. No overconfidence, cut loss properly set, etc...

This is the cycle so far which I adopt, and repeat, again and again. Hopefully one day, I would have sufficient funds to include Properties and Bonds as well.

4 comments:

  1. Hi Jun Wei,

    I have revamped my blog. Please take a look and let me know what you think. I will also be pleased to do a link exchange if that pleases you.

    cheers!
    dream

    ReplyDelete
  2. Dividends --> stocks which give good dividends.

    Investment --> company who got potential to grow

    Trading --> just trade to win

    is this how you differentiate?

    ReplyDelete
  3. Hi dream,

    added your blog :)



    Hi wayne,

    yup, something like that. The expected capital appreciation of dividend stocks are lesser that those in my investing basket. Of course, I could be wrong in either as well due to poor judgement.

    ReplyDelete
  4. The problem with to many young investors today is not that their taking to much risk with their invetments Its that their taking to little risk. 200 hundred dollars invested in a idex fund like the standard and poor five hundred would grow to twentyfive thousand dollars in fifty years. Thats assuming that stocks continue to earn their historical average return of 10% per year. While that same 200 dollars invested in CD's earning four percent would only grow to 1100 dollars in fifty years a big difference to say the least.

    ReplyDelete

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