Mistakes are preventing investors from being successful.
I just realised I forgot to mention to my regular readers I been featured on business insider =X
Mistakes are preventing investors from being successful.
I’ve worked with practically every trading strategy there is in the options market, including spread trades. I know a lot of people like to use spreads, and there are good reasons for them. The main reason they are not a primary part of my system boils down to simplicity. My best results have come by having fewer moving pieces in my trades, not more. I do a Bull Put credit spread trade as an alternative to LROS, for those of you who prefer to work with this type of spread. This is the most conservative type of credit spread trade you can work with, and it can be a reasonable way to limit your maximum loss.
I prefer a consistent, sustainable approach that can yield between 1.5% to 3% each and every month. That typically puts me on pace to make anywhere from 18% to 36% on an annualized basis, which is far ahead of what I would expect to make by using other “conservative” strategies like index or mutual fund investing, where fund managers are content to keep pace with a stock market that has averaged around 10% per year for the last 25 years. For your info,95% of fund managers do not beat the index.
My market and trading experience, I started my very first trade in in 2007 just before the market crash. I know how that feels like and I remember asking my dad why is he so calm and throwing more $$ in. I thought he was crazy, like all sons do anyway. I expanded my personal investing into options trading in 2012, and taught technical and fundamental investing techniques to so many investors.
Having done almost everything in the book, as mentioned, my best results have come by having fewer moving pieces in my trades, not more. Market price is something we can’t control. We focus on things we can control like risk mitigation and the defensive nature of options.
Remember your investment thesis when you first started, keep a investment journey log, and reflect years down. You will probably get what I’m trying to say with more experience. Experience is something you can’t study or buy. Have a good weekend while I'll be working at an event with lots of good looking people haha.
The problem is if you sell all your holdings and remain in cash, you would miss out on any potential future upside, dividends, takeovers at premiums, etc. What investors usually do after selling, is to buy back in at a higher level in fear of missing out on more upside and then find themselves buying right before the drop.
The issue with timing the market is that time in the market creates long term returns. If you miss out on just a few of the best days in the market, your long term returns are severely affected.
Source: Franklin Templeton Funds
If market timing is difficult and probably not something that 99.9% of the population can do, not even Warren Buffett or Ray Dalio do it, what can be done?
Here are three things everyone can do to increase long term returns:
Investing is something inherently easy, the only thing to do is find a few investments that offer a long term satisfying returns at low risk.
1 Month, a lot can happen. So here is goes.
1) Speaking on the big stage.
2) Singapore Investment Bootcamp
3) Investment Bootcamp in Bali
6 days of Bali into 6 mins.
4) Singapore Investment Bootcamp
6) Investment doing pretty well. I was giving subtle tips in my previous post. It's been 2 - 3 months my investment is up 40% and it's still nowhere close to my profit target =)
7) 2 students telling me they have made it, and most importantly, on the right path to financial freedom. It's getting addictive to help people... good problem =)
In closing this post
When you are in the business of helping others, it's not a business anymore. Invest simply, invest safe.
The S&P 500 and many other indexes are extremely expensive. The cyclically adjusted price earnings (CAPE) ratio for the S&P 500 is 29.87, which is just about to pass the 1929 peak CAPE ratio. However, the situation isn’t much better around the world. The German stock index has a CAPE ratio of 19.6, the Dutch index 21.6, Australia 17.5, India 20.3, and Japan 24.9. These CAPE ratios of around 20 mean that you can expect investment returns of around 5% or lower in the long term.
I find any kind of stock market return below 10% a crazy investment because the risk of owning stocks is simply too high for anything less than 10%.
You might see some countries as less risky and others as riskier. However, in the long term, it all revolves around productivity and value creation. Therefore, temporary trouble—which scares most investors away—in combination with a positive long-term outlook is usually perfect bargain hunting territory.
Short term volatility might be high due to political news or currency depreciation, but if you own stocks, the underlying assets will always give you a margin of safety, no matter where they are in the world. This, of course, is only if the assets are tangible and not financial.
Russia is the cheapest market with a CAPE ratio of just 5.3. This is due to economic sanctions, and low oil and commodity prices. However, some stocks are extremely cheap.
Other cheap countries are Brazil with a CAPE ratio of 10.7, Turkey with 10.1, and China with 14.1. Those countries offer plenty of bargains, the kind of bargains that many are going to bang their head against the wall in 5 years and wonder why they bought stocks like Foot Locker / NUGT / KORS etc...
Finding a bargain is one of the most beautiful things in investing. However, you have to turn many stones to find them. In 95% of cases, a stock is cheap for a good reason, so be very careful when investing in cheap stocks.
However, sometimes the stock is just cheap and you can’t find anything wrong with it. This is simply because the market doesn’t recognize the value in such a stock. The problem is that it might take a very long time before the market recognizes the value. Invest safely, diversify, reduce your risk, look long term.
Since my last post, my Russia investment is up 9% and Brazil is up 12%. Pretty awesome for a month's investment. The biggest problem with most people is they only invest in the country they live in. From where I live, I struggle hard to find growth.
Since my last post, I been on the papers again. Probably the last time I will do an interview on ST. I don't like the attention, doing it only because it helps inspires people to do better for themselves.
Since my last post, I created another youtube video. Very random stuff
Since my last post, I talked in many events, appeared on the edge, conducted a weekend class.
The biggest "WHY" to do all this, all this hard work, is only 1 thing. When a student comes to me, and tell me I have changed his / her life.
I have 3 students coming up to tell me that this month. Super driven to help more, retire early and achieve financial freedom.
As the stock market climbs higher, I moved my portfolio to only 30 - 40% stocks. I haven't see a healthy correction in a while. Russia and Brazil looking great for now in terms of evaluation and these makes up to 30 - 40% of my stocks.
Stock market aside, what have I been up too? At my age, finding a good friend is like finding a unicorn. I think I found one =)
I updated the seeking change section. There are four videos I highly suggest everybody to watch it.
I started a youtube channel, 1st video is a failure, but I'll keep trying. Why? Simply knowing failure is part or life. I'll just keeping trying and I'll see how it pans out.
My buddy, featured on ST =)
Independent financial adviser Glen Ho aims to make about $4,000 monthly in investment profits, which will allow his passive income to exceed his expenses.ST PHOTO: CHEW SENG KIM
[ Stock Tip at the end =P ]
Month of May been pretty intense. Courses after courses, plenty of wonderful people I met and just really grateful for the people around me.
Options Mastery Program, time and time again, we max out our capacity ( 40 pax max ). We do this to ensure trainer to student ratios are keep high so we can ensure the most value and success rate given to any students. The latest batch =)
Just over this weekend, engaged international students from taiwan, thailand, india, malaysia and some singaporeans =)
Was also pretty to met a very good friend of mine at the same hairdressing salon, she mentioned to me her previous hairdresser screwed her hair up, so came back to my friend. Very happy for her and her new born too =)
[ mos ]
The Mosaic Company is a producer and marketer of concentrated phosphate and potash crop nutrients. The Company’s segments include Phosphates, Potash and International Distribution. Its Phosphates Segment sells phosphate-based crop nutrients and animal feed ingredients throughout North America and internationally. The Company’s Phosphates business segment owns and operates mines and production facilities in Florida, which produce concentrated phosphate crop nutrients and phosphate-based animal feed ingredients, and processing plants in Louisiana, which produce concentrated phosphate crop nutrients. Its Potash segment mines and processes potash in Canada and the United States. Its Potash Segment sells potash throughout North America and internationally. Its International Distribution Segment consists of sales offices, crop nutrient blending and bagging facilities, port terminals and warehouses in Brazil, Paraguay, India and China. The company’s current market cap is about $9.3 billion.
Lets see how this goes in 2 years =)
Less finance talk, more personal stuff.
I'll start of by saying "If you want average, do what the average person does." I want to help people / animals. These need effort, blood and tears. So if you want a different life, do the things average people don't normally do.
My schedule today:
Haircut @ Reds. Alan been my hair dresser for over 10 years.
Interview with Portfolio Magazine with lovely Stella assisting me.
Dinner hanging out with my students and now friends =)
One lovely day ya. Tomorrow while everybody is enjoying their public holiday, I will be training. I hope my post inspires you to do what you normally you won't do. For the month of May, go do something you normally won't do. Simple stuff like telling your family "I love you" or pick-up and ebook / book to read and FINISH IT or walk towards a person selling tissue and give $50. Just one thing. Make it a habit, you will love this habit =)