New year resolution number 3

Finally, new resolution number 3.
I was waiting 2 days to get to this, since all the resolutions are writtern in terms of their priority.

Resolution number 3...Financial resolution.
I started to put my money into investments only last year, at the bottom of the economic crisis. I was lucky to start at the right time. I was lucky to start at the right stock. But luck can only get a person this far. I need to keep on learning.

Looking back on my strategy, I realised it only works well when i time the market correctly, which I did for my first trade. So I need to keep on thinking of strategies and direction of my portfolio. The aim is to diversify and develop a portfolio that is able to prosper during good times and reduce losses during a recession, or probably find alternative investment opportunities.

Some things I learnt and I hope to share.

1. Buy quality stocks: preferably blue chips, but mid-cap will do
2. Buy on fear, sell on euphoric: I know there will be that adrenaline rush, but bear with it
3. Its okay to time the market, but don't overdo it: They always tell you not to, because they know you will overdo it, but pls try to at least buy when the index is low. Any time is not always a good time, unless you know what to buy.

I don't think I need to explain too much about it, so I can move on to talk about my resolution.

As of now, the total returns of my portfolio is about 103%. I am currently holding only 3 stocks. My aim in 2010 is to get more stocks into my portfolio. My investments involve companies in the oil and gas, property and transportation. I see myself likely getting REITs. Anyway, its too early to discuss what I'll get.

I am aiming for my portfolio to give me returns of 150% by the end of the year. Erm, this isn't very difficult if I am just going to hold my current portfolio and get rid of stocks which are not performing. But I want to grow my portfolio and hold better quality stocks, so this might be a challenge, especially when the market has risen so much from its March 2009 lows.

I also think that it is important to decide what I want my portfolio to do, for now and the long run. The direction will dictate the type of stock I will buy.

Erm...after typing so much, suddenly I feel lost, maybe I do not know my financial goal as well as I think I do. I've been treating stocks like a game. A very fun and exciting game. Maybe I should start evaluating my own financial goals. Maybe setting the direction of my portfolio should be the main priority, followed by setting goals for the performance of it.