Investing experience of 50years old+ Man - Part II
========================================
https://www.youtube.com/watch?v=jS9r1Dk-Zg8
The stock market is “dangerous” especially for First-Time Investors due to constant manipulation. To profit from your investment, EQ matters more than IQ. Successful investing requires outstanding ability to identify and overcome one's own psychological weaknesses. 66% of investors who lose money regret emotional, impulsive investing decisions. So We are hardwired from birth to be lousy investors.
A successful investors probably go through the 70-20-10 Model for Learning and Development.
70% from on-the-JOB experiences experiential learning. No input is as vivid as long lasting as it own experience. So nothing teaches us better than our own experience.
A well paid banker has the best opportunities on the job learning by trading for their HNW clients . Win or lose .They will get bonuses & a learning experience from clients success & failure. Their learning curve is shorten.
20% from probably depends on communication with others and get feedback from others investors experience. Trainers who conduct investment talk & lesson got the best of both world. He gets to learn more by teaching & faster by observing other people failure and success.
10% from reading books, attending course/seminar , watching good Utube about investment , fortunate teller book etc.
The difference of a person’s fate is decided from what a person spends in his free time . Use these 2-3 hours to read, learn & think If you continue for several years, success will come knocking on your doors
I am the Survival of 2 major crisis (1997 & 2008)
=======================================
A financial crisis started in Thailand in July 1997 and spread across all of Asia. At the height of the crisis, the Korean Airline with asset of 100 planes were left less than 3 planes
The US financial crisis on Sept 2008 was a terrifying experience. Citigroup stock price dropped from $50 to $0.99. No lesson can be learnt as vivid as long lasting as it my own HARROWING experience.
You MUST HAVE before before you start investing.
=========================================
Accidents and critical illnesses are one of the main factors that cause poverty. So insurance protection are the most important financial products you must buy as early as possible
Have a emergency fund,6-12 mths allocated. It is a money set aside for expenses from unexpected events such as hospital bill or the financial burden from a sudden job loss .
You MUST KNOW before you start investing.
====================================
There is a record rise of the inexperience home trader hoping to boost their income. You need to know that entering the stock market full time is like signing a contract with the DEVIL (psychological weaknesses). "Two super-contagious diseases, fear and greed, will forever occur in our investment.
Leveraging. Taking financial advice from a bank to leverage very high risk product is like getting medical advice from a drug dealer.
My advice
=======
Make CPF your 1st priority plan for retirement.
If at Age 30 SA=191k. At age 60, it will grow $622,000.
CPF SA Compounded interest will run into $1millions as long as you are still working (contribute to CPF) till 60.
http://www.moneychimp.com/.../compound_interest...
Warren buffet – Follow true investment Guru
====================================
There is s saying
跟着百万, 赚十万
跟着千万, 赚百万
跟着亿万, 赚 千万
YOU WILL NEVER GO WRONG IF BUY A BASEKT OF THE SAME STOCKS AS WARREN BUFFETT.BUT YOU NEED TO BE PATIENT & HAVE A LONG TERM HOLDING ABILITY (10-20 YEARS).
You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 100 IQ."
Bungee jumping - Simple investment strategy
=====================================
Bungee jumping taught us a very important lesson:
Initial stage is always extremely FEARFUL. After the JUMP. Your FEAR abate.
There will be a big correction every 10-12 yrs there will big crisis (1987,1997,2008,2022,???). Always buy on fear or BLOOD in the street. When the newspaper front page news is "Stock mkt big correction" (once in a blue moon). Time to accumulate good stock. Buying stock at historical valuation.
Cut Losses equate (consider to be the same) to drug Heroin
================================================
So so Difficult To Cut Losses. The single most important reason that people lose money is that they don’t cut their losses short.
20 years+ experienced traders in the market know the important of cutting loses fast.
Many amateurs or new investors on the other hand have a difficult time with cutting their losses short. "Letting losses run is the most serious mistake made by most investors.”
Never get yourself into the CUT losses situation while you are still a amateurs ON JOB INVESTING.
1) Don’t put everything into one basket. Diversification is a protection against ignorance.
2) Limit your size in any position so that your inability to cut loses is limited small loss.
3) Buy dividend blue chip local bank stock, singtel , STI ETF index .
Let say you bought
[email protected]. It dropped to $2.50. At least you got to get yearly dividend of 3% to 5%. Sitting on Paper Loss and Riding it (hope it can go back $3.5) while you still collect dividend. Will be Less painful.
4) Buy good unit trust with dividend 3-4% payout to avoid the stress of having to see your investment value go down by 30%.
Avoid Penny stock - “Demon” (恶魔) Small Cap listed companies.
===================================================
“Risk comes from not knowing what you’re doing.”
Speculation is highly dangerous game especially Penny stocks because it is much easier for perpetuators to control & manipulate
My reservist mate congratulated his neighbor for achieving a successful IPO but he was SHOCKED when he told him not to buy his company stock. From 0.7 drop to 0.01. Former MD was charged with misappropriating millions of company $.
There are quite many of such cases.
2013 penny stock crash has made at least half a dozen people bankrupt. Billions $ was wipe out.17 individual & institutional clients had 32 accts which were said to be used by the 2 accused to conduct unauthorised trades in the manipulation scheme.
Be careful US/HK Tech stock - tech stock bubble in 2000 & 2020
====================================================
The 2020 Tech bubble formed by cheap money, easy capital, market overconfidence, and pure speculation & manipulation.
Bought US Celeritek 2000 shares @$14 (Year 1999). Within 6 mths. Shoot up $85. Luckily sold@$56 .After DOT.com tech burst. Drop to a few cents a few years later.
Yahoo 1996 IPO@$12. Market open $33. Shoot up $400+in 2000. After dot com burst & few years later. Drop back to $30+.
Limit your size in any position for Tech stock as it is very volatile. Eg. Alibaba (52wk High $300 - 52 low wks $108 ) dont pay dividend. Following the herd can be very dangerous for tech stock.
If you bought at high price. U may need to wait for a few yrs or even 10 yrs to go up to your buy price without any dividend payout.
So what I am from RI or Hwa chong ?
==============================
Both are from RI & Hwa Chong. They have years of investing & making losses. They realize that The key to trading success is emotional discipline. EQ matters more than IQ.
He (From RI - Sporean) has a IQ of the top 5% of Japanese engineer according to the Japanese MNC CEO. But he lost millions of dollars speculation in the stock mkt. He makes a wise decision to quit the stock mkt & concentrate in his biz.
After he sold his company to a investor for >10 millions. He decided to go into fast making $ FX trading. Make A good decision to go UK to learn from the FX guru 1st. Spend 1 yrs+ in UK & return back to SG equip with the knowledge. After years of trading FX, he shake his head left & right. Not making any profit.