War chest... oh war chest.. when should I use you?

I was just barely 6 months in my first job when the financial crisis of 2007-08, also known as the Global Financial Crisis (GFC), happened. I remember losing approximately S$12,000 (probably 50% of what i had) back then. I felt lucky exiting my positions earlier. But I didn't had the cash to take advantage and accumulate the stocks I wanted when the STI was way below 2000 points.

From that, I knew I had to save hard and accumulate cash. There will be a time (surely) when you will have the opportunity again. Many years later, I started reading financial blogs and the term - War Chest - resonated how I felt in the 2008 GFC.

Today, I have already worked for 7-8 years. Managed to save a decent amount. But I still feel my war chest is probably the mini war chest as shown in the picture. With the STI dropping close to 20%, I am wondering when should I use my mini war chest.

Source: ASSI AK Facebook Page

I do follow ASSI on Facebook and I know he has started his "nibbling". There were followers in his Facebook account that even tracked what he has "nibble" (Look at the picture on the left).

I believe AK has a very deep war chest. In this list of stocks that he has nibbled, I am also interested in Vicom, Wilmar and Accordia Golf Trust. Maybe not Starhub, but Singtel.

So the question to myself, when should I start using my mini war chest?

Should I be a little more patient?

What should my plan be?

Today, the STI bounce back 1.51%. Did I miss the boat?

I wanted to use 20% of my war chest when the STI was below 2800. Probably, another 30% when the STI is below 2350. And use the rest when the STI has dropped below 1900.

To be honest, it is easier to articulate a plan but to execute it... it is going to be tough. It is definitely going to test my pain level. I am still pretty fine with the current 20% drop.

Anyway, I came across this blog post - Can past give Singapore stock investors lesson or two on STI?

Straits Times Index 2007-09 ‘Subprime Crisis’

Source: Can past give Singapore stock investors lesson or two on STI?

Do read Soh Tiong Hum's article (above link). If history is to repeat itself, we are currently at Stage A. So maybe, I have not missed the boat. I will start using my mini war chest pretty soon.