Showing posts with label Discipline to keep one's emotions at bay. Show all posts
Showing posts with label Discipline to keep one's emotions at bay. Show all posts

Friday, August 26, 2011

Discipline to keep one's emotions at bay

Currently, my percentage of cash comprises 35% of my portfolio with 65% fully invested in equities. At present, my portfolio in terms of paper profits is still yielding a positive return even after the market sell down. ( I have not included the dividends i have received over time.) Having said that, i did consider liquidating some of my equities when the 50 EMA crossed the 200EMA from above but alas, i am not disciplined. I find difficulty in selling some of my equities after a sell down. It is emotional for me and i think i need to improve on this.

Having said that, another factor why im not selling is because my companies are still fundamentally strong and yielding at least 6% -7%dividends based on my buy price. When i include the lending fees which i receive when i let people short my shares through SGX, my returns are slightly more. I am not emotional when my shares drop 50% in value because of market risk . I dont mind as i will buy more but i get emotional when the companies i buy go fundamentally weaker resulting in share price decrease. I hate that.Really hate that.Furthermore, i dont know if QE3 will be annouced. If announced, equities could have a rally in the short to medium term.

This 35% cash that i have will be there to take advantage of any property correction or massive share price correction. Jackson hole speech is upon us. I hope that Ben Bernake doesnt do a QE3. I hate it when he said that interest rates will remain low till 2013 I hate it when governments impose short selling bans. I love it when Gold price goes up because i think its a bubble. I hate it when Moody's and Fitch dont downgrade US debt. Its not the time to get emotional...

AAAAAArrrghh, I am frustrated and i need inner peace. God please help.