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Disciplined Trade Will Lead to Profits

Ask experts about the market rally and the camp is pretty evenly split on whether to jump in, or stay conservative. Vasu Menon, VP of group wealth management at OCBC Bank, is all for taking the opportunity to trade in the rally. But there is a catch — one must exercise extreme discipline, by keeping to very tight stop-laws and profit-taking levels.

"The problem with a lot of people is, when they hit their 10 to 15 percent (profit) they don't want to stick to it, they want 30 percent. And similarly ... if you set a level and it hits a level, cut your losses and don't over trade. Don't commit 50 percent of your money to trading," said Vasu on CNBC Asia Pacific's "Protect Your Wealth".

One of Vasu's investment strategies includes maintaining two types of portfolios — one tactical and one strategic.

The tactical portfolio capitalizes on trading opportunities, with 20 to 40 percent of one's portfolio invested, depending one one's risk appetite.

"One should not underestimate risks. Some of these risks could pan out and cause markets to pull back," he added. "You don't want to fire all your bullets in one go, so spread it out over the next twelve months, because over the next two three years, I think markets will recover and you could enjoy pretty good returns."

In the commodities space, Vasu views gold as a promising investment even as the value of the yellow metal has risen by some 38 percent in the first quarter of this year, according to the World Gold Council. He said gold is emerging as a distinct asset class with many fund managers and central banks starting to acquire gold. Expectations of a dollar debasement and inflation down the road, he said, make gold a good hedge.

"Whatever you invest in, understand it completely, understand the risks," he advised. "The thing with a lot of investors is they buy just simply on the back of advisor's comments. They should really understand what they're buying.

Comments? Questions? Send them in here.


Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."