My Performance - Indexed

When I first looked at my performance I was not too happy especially for this year. I made some mistakes on Oct 2008, Jan 2010 and May 2010. I did not follow my discipline completely. 2008 Aug - Oct was the worst performance in my 15 years investing in the stock market. I had gone through the Asian Crisis, dotcom bust and year 2000 bug, but none even close to what happened then. I was actually profitable during those years!

After a painstaking effort indexing my portfolio, I feel better. Here is the result:



The idea of indexing your performance takes care of injection or withdrawal.
Indexing is like pricing your fund on a per share basis i.e. imagine when you first start off, you sell shares to your fund at par or $1.00 each share. Any injection subsequently is added at the prevailing price of the fund.
So you start off with say, $1million with shares at $1.00 per share. Then 6 mths later when your fund has appreciated 20%, each share is worth $1.20 each. Any injection will be for shares at $1.20 share so the index would be 120 at this point in time.

So by indexing the performance of the fund, there's no need to worry about how any injection or withdrawal would affect the total nominal value (size) of the fund.

After beginning Oct 2009, I was more confident with my money when I upgraded my strategy using options and added funds to my portfolio.The injection of capital has made my performance looks good!