After looking at my finances, I realised that achieving financial freedom from being an employee was highly unlikely. Many books on financial freedom teaches that one needs to have investments, and passive income in order to become financially free.
In 2007, I started learning about investing and trading and have explore various means for investments. At the end of my exploration, I've decided on trading the Forex Spot Market using Technical Analysis (mainly Elliott Wave) as my main approach for trading. Never one for putting all my eggs in one basket, I have embarked on a multi-prong approach:
Firstly, ensure that I build up my emergency funds of 6 months of wages. These funds are to be fully liquid, and not to be used in any form of investment / trading.
Secondly, diversify my investments: I have allocated a sum of money for trading, a regular savings plan which goes into a diversified mutual funds, and a share-builder plan from POEMS to dollar cost average my investment in the Straits Times Index (STI) ETF.
My Trading Goal is to achieve 3%-7% returns monthy, with a less than 1% probabilty of a 20% drawdown.
According to Mark Tier's Investor Personality Profile, my trading Archetype is "Trader".
"The Trader" acts primarily from unconscious competence. This archetype, epitomized by George Soros, needs to have a “feel” for the market. He acts decisively, often on incomplete information, trusting his “gut feel,” supremely confident that he can always beat a hasty retreat."
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My Trade Statement Analysis
