Friday, July 15, 2016
Pointer # 2 : Accumulate Bullets
Morning Friday ... yet another record high for DOW, breaking above 18500 level. HISTORICAL HIGH ... JULY 2016. Note this as we shall see new high in near future ... before it comes tumbling down?
KLCI looking at 1660 resistance level ... once breakout, freedom is the way to go.
Liquidating : I m in the process of selling ... selling my apartments and items. Will try to live with minimal (cut-cost on meals and outings too) ... at least for these coming few years, save as much and hope to 'sai-lang' during the crash. SELL ... is one of the way I m accumulating my bullets --- pointer #2.
In case some have not read my four pointers
Accumulation of bullets basically means ... work-hard ... earn extra money(work part-time here and there) ... try to be thrifty, cut-cost and use less. SAVE as much cash as possible which gives good dividend (such as FD or ASB).
SELL items ... will be my next process.
Selling my apartment
I have sold my Sabah's apartment last Dec ... and now, I m selling my current apartment which I rented out. Yeah ... I need to put more cash ready (as a preparation of market crash). Will advertise the apartment (at USJ1, Jati2 apartment) when I finalised my plans.
I have three options : 1. Take overdraft 2. re-finance 3. Sell.
After months of thinking, I decided that SELL is the best option as I could get the cash, put in ASB for 6-7% interest while waiting.
This is something I learnt some years ago ... when I met an investor(he profited hugely during 1997/98 crash). What Mr C done was ... sold his PJ house in 1995 when he saw craziness in bull-market (he was working in a bank, by the way) and rented a room, instead. Sit on pile of cash ... and wait for crash!! Incredible discipline person ... and shared his success stories with me.
If I remembered well, he bought PBBank, Tenaga and another stock(cant recall as I met too many people). He bought in stages ... and sit on them ... waiting for recovery!! What a brave person ... and how he done that successfully amazed a novice like me.
He was honest, at least ... to admit it was not right to buy during crash as he has to average it down ... and it still went lower. He is a fundamentalist and defensive-play. While majority lost so much during 97/98 crash .. he was patiently sitting on cash ... waiting for opportunities.
I have to admit he is such a humble person ... tho he retired rich now. Highly admired. I have invited him to share his experiences with public but he reluctant and 'shy'.
I m try to learn from him ... if we know markets no upside or crash is nearing the corner, what should we be doing?
Keep cash is one of the way. Keeping ourselves save ... out of markets volatilities , logically speaking. But ... that will defeat my pointer #4 (increase knowledge and experiences). I will speak more on pointer #4 in future.
Well ... it is a hard decision to make ... sell my apartment and keep cash!!
Discipline is one of most important point in personal finances. It is not what we know ... it is what we do. Also ... we need to do what others wont do ... be so discipline to focus and keep ourselves abreast with latest development.
These are few values I learnt from Mr C ... and once I successfully done that in years to come, I will like to invite him for a nice dinner + talk. I will invite all readers ... introducing to many who have helped me, giving me ideas and how I could ... capitalise on the coming crash.
Selling of my apartment is just one of the EIGHT ways I have placed under #2 : Accumulate Bullets.
CASH is king during bad-times and recession. Mind you, I do see market bottoming from here as DOW at new high. I m not talking about market is going to crash and many mis-quote or misunderstood. I m just preparing for it ... as it will be little to late to prepare during crash, ok?
We might see another strong leg up from here in 2H2016 ... and I m still bullish in equities.
In the mean time, it will be a good time to start preparing some cash in hand. SELL is one of the way I could try to get some cash.
Anyone want to buy a foldable bike from me? I am selling it half-price, bought it 2 years ago.
SELL everything to move into small place. SELL.
Happy selling ... including our stocks. haha.