Sunday, June 14, 2015

The 30-20-20 investing rule to becoming a SGD millionaire

Why are there so many investors and perhaps speculators in the Singapore stocks markets? Well, the answer is simple, many are seeking greater wealth in the stock markets, be it to create an additional trading income, to create a desired investing passive income or to seek the ultimate goal of financial freedom. I always believe investing is really a route which can allow one to achieve financial freedom if one is able to invest or trade well, regardless of how much one earns from his main source of employment income.
With a well-planned strategy, a retail investor can turn an ordinary sum of capital into a SGD $1 million. It is not impossible, what it requires of us is really a good investing strategy. Here I introduce the “30-20-20” investing rule for anyone who desires to be a SGD millionaire.

The “30” means the starting capital of $30,000. Let the retail investor invest in one stock with this capital and when the stock price reaches an appreciation of 20% (the second “20” in the “30-20-20” formula), the investor should liquidate the capital with the profits. With these, the investor should deploy into another stock and again liquidate the principal with the profits after a 20% capital appreciation. Do this for the next 18 times for a total of 20 times and what will you get after this? A portfolio of SGD $1.1 million dollars! One can spread these 20 trades into 4 trades per year basis so that within five years of investing, with just $30K, he can become a SGD millionaire! Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

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