William D. Gann was one famous investment guru. Born in 1878 and died in 1955, he had witnessed the great depression, the World War 1 and World War 2, the ups and the downs in the stock market for 50 years! He invented the famous Gann Theory – a time cycle based technical analysis.
He could make prediction of the stock or commodity with the exact price on the exact date! For example, in 1909 Gann made the prediction that the price of wheat would go to $1.20 by 12 noon on September 30th. He also successfully predicted the massive stock crash in 1929.
Gan believed knowledge is power!
He said:
"The difference between success and failure in trading in commodities is the difference between one man knowing and following fixed rules and the other man guessing. The man who guesses usually losses. Therefore, if you want to make a success and make profits, your objective must be to know more; study all the time; never think that you know it all."
We must stay objective, acquire the right knowledge, stay humble and always have the quest to learn more.
With these positive attitude, success is on the way!
Tuesday, December 6, 2011
Pay More Be Happy
Overpay your loan if you can.
Based on taking out a 25-year home loan of RM100,000, overpayments of RM300 a month would pay it off 12 years early. You would pay back RM123,084 rather than RM146,988 – a saving of RM23,903.
Based on taking out a 25-year home loan of RM100,000, overpayments of RM300 a month would pay it off 12 years early. You would pay back RM123,084 rather than RM146,988 – a saving of RM23,903.
Friday, November 25, 2011
Investing Advice From Jim Rogers
This is the best advice for trading from Jim Rogers which I think should be shared.
Jim Rogers: I would say one lesson we all need to learn is that after you’ve had a great success, you really should be very worried. Let’s say you sell and say you’ve made 10 times on your money. You should be extremely worried. You should close the curtains, not read, look at the TV, or anything because that’s when you’re full of hubris, arrogance, confidence. You think, “God, this is something easy,” and you’re desperate to jump around to something new. You should do your very best to avoid making another play until you’ve calmed down a lot. Just wait. It’s a very dangerous time for any investor.
Likewise, if you take a huge loss and there’s a big panic and things are dumped on your head because you’re overextended or wrong for whatever reason, calm down, don’t say, “I’m never gonna invest in stocks again or commodities or whatever.” That’s the time you really should be willing to invest again if you can gather together some capital money. The investments can be terribly emotional. You have to figure out a way to control your emotions and deal with your emotions if you’re going to survive in these markets.
My advice is that, most of the time, most investors should do nothing. They should look out the window or go to the beach. You should wait until you see money lying in the corner and all you have to do is go over and pick it up. That’s how most investors should invest. The problem is we all think we need to jump around all the time and be jumping in and out and that’s not good.
We think we have to have investments. No, we don’t. If I said you could only have 25 investments in your whole lifetime or if there was some way to limit you to 25, you would be extremely careful. You wouldn’t be jumping around doing all sorts of strange things. Patience is what most investors need to learn. You don’t have to be doing things all the time. Most of the time the best thing is to do nothing. You just sit with what you have as an investment and let it ride or sit and wait until you see someone sitting in the corner.
Most of the time – unless you’re a short-term trader and great at it. I’ve known some spectacular short-term traders. But for most investors, unless you’re one of those guys, then you should just do nothing. Do nothing. If you’re an investor, do nothing except re-examine what you have, and if you’re not investing, just continue to look until you find something.
Jim Rogers: I would say one lesson we all need to learn is that after you’ve had a great success, you really should be very worried. Let’s say you sell and say you’ve made 10 times on your money. You should be extremely worried. You should close the curtains, not read, look at the TV, or anything because that’s when you’re full of hubris, arrogance, confidence. You think, “God, this is something easy,” and you’re desperate to jump around to something new. You should do your very best to avoid making another play until you’ve calmed down a lot. Just wait. It’s a very dangerous time for any investor.
Likewise, if you take a huge loss and there’s a big panic and things are dumped on your head because you’re overextended or wrong for whatever reason, calm down, don’t say, “I’m never gonna invest in stocks again or commodities or whatever.” That’s the time you really should be willing to invest again if you can gather together some capital money. The investments can be terribly emotional. You have to figure out a way to control your emotions and deal with your emotions if you’re going to survive in these markets.
My advice is that, most of the time, most investors should do nothing. They should look out the window or go to the beach. You should wait until you see money lying in the corner and all you have to do is go over and pick it up. That’s how most investors should invest. The problem is we all think we need to jump around all the time and be jumping in and out and that’s not good.
We think we have to have investments. No, we don’t. If I said you could only have 25 investments in your whole lifetime or if there was some way to limit you to 25, you would be extremely careful. You wouldn’t be jumping around doing all sorts of strange things. Patience is what most investors need to learn. You don’t have to be doing things all the time. Most of the time the best thing is to do nothing. You just sit with what you have as an investment and let it ride or sit and wait until you see someone sitting in the corner.
Most of the time – unless you’re a short-term trader and great at it. I’ve known some spectacular short-term traders. But for most investors, unless you’re one of those guys, then you should just do nothing. Do nothing. If you’re an investor, do nothing except re-examine what you have, and if you’re not investing, just continue to look until you find something.
Thursday, July 7, 2011
Intrinsic Value
Any great company is a bad invesment if the price is high enough. We have to distinguish between a company and a stock.
A company may be great because it has excellent management and unique service, but it may be a bad investment if the stock fully reflects this information.
Alternatively the stock of a troubled company could be a great buy if the price more than discount all the problems.
Great buying opportunities sometimes arise when investors overreact to bad news. They more than discount all the pessimism about a company and the stock price falls below its intrinsic value.
Cheap enough, any company is a buy. Costly enough, any company is a sell. The trick is finding what a company is worth. Whether a company is good or bad, the stock is good only if it’s selling or less than it’s worth.
The trick is to find what the stock is worth that is the intrinsic value. Discounted cash flow is one of the method.
A company may be great because it has excellent management and unique service, but it may be a bad investment if the stock fully reflects this information.
Alternatively the stock of a troubled company could be a great buy if the price more than discount all the problems.
Great buying opportunities sometimes arise when investors overreact to bad news. They more than discount all the pessimism about a company and the stock price falls below its intrinsic value.
Cheap enough, any company is a buy. Costly enough, any company is a sell. The trick is finding what a company is worth. Whether a company is good or bad, the stock is good only if it’s selling or less than it’s worth.
The trick is to find what the stock is worth that is the intrinsic value. Discounted cash flow is one of the method.
Tuesday, July 5, 2011
Be Happy
God won't ask what kind of car you drove, but He'll ask how many
people you helped get where they needed to go.
God won't ask the square footage of your house, but He'll ask how many
people you welcomed into your home.
God won't ask about the clothes you had in your closet, but He'll ask
how many you helped to clothe.
God won't ask how many friends you had,
but He'll ask how many people to whom you were a friend.
God won't ask in what neighborhood you lived, but He'll ask how you treated your
neighbors.
God won't ask about the color of your skin, but He'll ask
about the content of your character.
God won't ask why it took you so
long to seek Salvation, but He'll lovingly take you to your mansion in
Heaven, and not to the gates of hell.
people you helped get where they needed to go.
God won't ask the square footage of your house, but He'll ask how many
people you welcomed into your home.
God won't ask about the clothes you had in your closet, but He'll ask
how many you helped to clothe.
God won't ask how many friends you had,
but He'll ask how many people to whom you were a friend.
God won't ask in what neighborhood you lived, but He'll ask how you treated your
neighbors.
God won't ask about the color of your skin, but He'll ask
about the content of your character.
God won't ask why it took you so
long to seek Salvation, but He'll lovingly take you to your mansion in
Heaven, and not to the gates of hell.
Saturday, March 12, 2011
Motivate Yourself To Be Resilient
Plato once said, “The first and the best victory is to conquer self.”
Resilience is a remarkable characteristic of a successful people. Resilience is the ability to bounce back from failure; use mistakes and failures as learning opportunities.
“The man who can drive himself further once the effort gets painful is the man who will win.” Roger Bannister.
People with resilience demonstrate a winning character. They never admit defeat. They are highly motivated to carry on with life despite facing setbacks.
“The spirit, the will to win and the will to excel are the things that endure. These qualities are so much more important than the events that occur.” Vince Lombardi.
People with resilience are positive minded and proactive, self-starters and able to visualize themselves to control and decide their destiny.
“It was courage, faith, endurance and a dogged determination to surmount all obstacles that built this bridge.” John J. Watson.
Resilience is a remarkable characteristic of a successful people. Resilience is the ability to bounce back from failure; use mistakes and failures as learning opportunities.
“The man who can drive himself further once the effort gets painful is the man who will win.” Roger Bannister.
People with resilience demonstrate a winning character. They never admit defeat. They are highly motivated to carry on with life despite facing setbacks.
“The spirit, the will to win and the will to excel are the things that endure. These qualities are so much more important than the events that occur.” Vince Lombardi.
People with resilience are positive minded and proactive, self-starters and able to visualize themselves to control and decide their destiny.
“It was courage, faith, endurance and a dogged determination to surmount all obstacles that built this bridge.” John J. Watson.
Friday, January 28, 2011
Criticism
How To Overcome Criticism
Brian Tracy said, “Almost all unhappiness in life comes from the tendency to blame someone else.”
To the wise man, criticism is good, whether it is constructive or destructive. In other words, criticism has an intrinsic quality.
“Most of us would be upset if we were accused of being silly, but silly comes from the old English word ‘seilig’ and it’s literal definition is ‘to be blessed, happy, healthy and prosperous.” Zig Ziglar.
Never react to criticism, instead response to it. How to response to criticism?
O Ascertain its validity and response accordingly and positively.
O Evaluate the criticism and explain if it is true.
O Don’t get defensive, after all we are not perfect. We care just human.
O Don’t take criticism personally. Focus on what had been said and not on who said it.
“Never letting the competition defines you. Instead, you have to define yourself based on a point of view you care deeply about.” Tom Chappel.
“If people like you they’ll listen to you, but if they trust you they’ll do business with you.” Zig Ziglar.
Brian Tracy said, “Almost all unhappiness in life comes from the tendency to blame someone else.”
To the wise man, criticism is good, whether it is constructive or destructive. In other words, criticism has an intrinsic quality.
“Most of us would be upset if we were accused of being silly, but silly comes from the old English word ‘seilig’ and it’s literal definition is ‘to be blessed, happy, healthy and prosperous.” Zig Ziglar.
Never react to criticism, instead response to it. How to response to criticism?
O Ascertain its validity and response accordingly and positively.
O Evaluate the criticism and explain if it is true.
O Don’t get defensive, after all we are not perfect. We care just human.
O Don’t take criticism personally. Focus on what had been said and not on who said it.
“Never letting the competition defines you. Instead, you have to define yourself based on a point of view you care deeply about.” Tom Chappel.
“If people like you they’ll listen to you, but if they trust you they’ll do business with you.” Zig Ziglar.
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