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As we head into the Year of the Red Fire Horse, the energy in the Singapore market is hard to ignore.
This momentum is fueled by local favorites such as DBS Group Holdings Ltd (SGX: D05) trading at record highs near S$60, and the Singapore Exchange Ltd (SGX: S68) itself smashing through a historic peak of S$19.20 just last week.
In just 12 months, we’ve watched the Straits Times Index transform from a steady trot at 3,372 to a full-speed gallop toward 5,000.
In Chinese zodiac lore, the Horse represents speed, power, and forward motion. But any experienced rider knows this. Speed without control is dangerous.
The same applies to investing.
To stay disciplined while markets move faster, here are five smart money habits that can help you build lasting financial success in 2026.
When markets hit new highs, temptation creeps in. The stock that just broke out. The small cap that landed a big contract. The feeling that you might be left behind.
That’s how mistakes are made.
The Smart Habit: Before buying, pause and ask one question.
Are you buying a strong business, or are you reacting to a rising price?
If valuation has run far ahead of earnings, it’s okay to wait. Not every race needs to be entered.
Remember, a horse that sprints too early might not have the stamina to finish the race.
In the Year of the Horse, your most loyal companions are your Blue-Chips and REITs. These are your workhorses.
They might not be flashy, but they are reliable, and they consistently pull the weight by providing steady dividends.
The Smart Habit: Reinvest your dividends instead of spending them all.
This is the secret to compounding. When dividends buy more shares, compounding starts to work.
By reinvesting your payouts, you are essentially adding more “horses” to your stable, each working to generate even more income for you in the years to come.
In a “Fire Horse” year, things may move fast. Interest rates in 2026 have stabilized, but they remain a key factor for many businesses, especially those that carry significant debt.
Highly leveraged companies have less room to manoeuvre when conditions change.
The Smart Habit: Make it a habit to check the Gearing Ratio (debt level) of your holdings.
A well-managed REIT typically keeps its gearing below 40%. Lower debt gives companies flexibility and resilience.
Just as a rider checks the reins to ensure they have control, you must ensure the companies you own aren’t carrying too much weight.
A “strong” balance sheet is what allows a company to survive a sudden market stumble.
The biggest mistake investors make during a bull market is trying to time the peak. They wait for a crash that never comes, or they buy everything at the very top.
The Smart Habit: Stick to a Dollar-Cost Averaging (DCA) strategy.
By investing a fixed amount every month, regardless of whether the STI is at 4,500 or 5,000, you take the emotion out of the game.
This “steady trot” ensures that you are always moving forward. Whether the market is strong or quiet, you continue accumulating quality names such as DBS, OCBC (SGX: O39), and United Overseas Bank (SGX: U11) over time.
Markets don’t move in straight lines. Even strong years come with pullbacks.
The Horse is known for its endurance. In a market that can be volatile, the most important habit is the ability to stay invested when things get bumpy.
The Smart Habit: Stay invested if the business fundamentals remain intact.
Successful investing is about “time in the market,” not “timing the market.”
If the fundamentals of the business haven’t changed, there is no reason to jump off the horse.
Patience is often the hardest habit to master, but it is the one that leads to the greatest “Huat” in the long run.
The Year of the Red Fire Horse brings momentum and opportunity. But momentum alone is not a strategy.
By focusing on discipline, reinvestment, balance sheet strength, consistency, and patience, you are not betting on a sprint. You are building a stable of quality assets designed to carry you through many market cycles.
Investing success in 2026 isn’t about being the fastest; it’s about being the smartest.
Huat Ah!
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Disclosure: Felicia T. owns shares in DBS, OCBC, United Overseas Bank and Singapore Exchange.
The post 5 Smart Money Habits to Build Financial Success in the Year of the Horse appeared first on The Smart Investor.