Since I have identified the stocks/ETFs to be bought for my portfolio, I will be using my strategy to buy these stocks. My strategy is using averaging. I believe that it will be very hard to maximum your gain by guessing the market. However using averaging has a good chance to get half the maximum gain (or half the maximum loss). If got time, I will explain the mathematics for this strategy. My only assumption for this to work is market will go up to break new high in the future.
Using averaging strategy, I will buy at equal amount at each hundred level of the STI index. For example, when STI reaches 2700 I will buy some, STI reaches 2600 I will buy some, STI reaches 2800 I will buy some. I must maintain a discipline not to overbuy at each level. In my planning, the lowest level will be at 1000.
In that sense, I won't be worrying about uptrend or downtrend of the market. Dividends are what I am targeting, so a strategy that can restrict my loss to 50% is very important.
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