Read this article here
In a way, I can say this Covid-19 has brought forward many underlying issues that many people faced in today's competitive society. The issue of "LACK OF"
Lack of money
Lack of love
Lack of resources
Lack of relationships
Lack of connections
Etc
There is a saying that goes something like this - when we point one finger one, 3 fingers are pointing back at you. That means, it is just as necessary if not crucial that we do a self reflection on the problems that we have.
Let's talk about lack of money since we are in this personal finance forum, others another time, another space. If money is constantly an issue in your life, then it is necessary that one takes ample time to diagnose the problems.
Savings - it is said that many understand the importance of savings but so few carried it out consistently. That is the word. It is not about saving 50% or one lump sum once and forget about it. It is better to set aside 15-20% each month for savings. The excess of 6 months savings to meet emergency needs (perhaps like now) are to be channeled into investments
Investments - with today's low interest rates offered by the banks, it is becoming a sin to still queue outside the banks and ask them to take your money. Even buying bonds offer you a higher yield (maybe not now)
What to invest, how long to hold, etc - it is better to consult your Financial adviser.
Income - this to me is the key. If you have a full time job that pays you monthly salary, then you have no excuse not to save x amount per month. If can't, then either you adjust your expenses lower or find a job that pays you higher. To do the latter, you need to assess the skills that you have that the Employer would find value in.
Gone are the days when we can rely on one single source of income and retire comfortably. We must diversify and have multiple streams of income. Some examples :
1. Your full time job - active income
2. Weekend - take on part time projects that pays you. In Asia especially Singapore, the common part time jobs include food delivery, tuition, swimming lessons, taxi driver,etc. I would include trading here as well.
On weekday during the nights, make an effort to take up some courses that are relevant to your day job so that you are keeping abreast of the industry development. That also open up opportunities for you to ask your boss for bigger responsibilities. And when the right time comes, you can ask for a pay raise and/or promotion.
I am often asked which is easier - to reduce expenses or increase income ? My take is the latter because it is infinite. Expenses especially the fixed ones like mortgage loan, education, transportation, utilities, groceries ,etc - you may reduce maybe 10% but anything more you may compromise the quality of life you have for your family. With inflation, the costs of goods are going to go up thus the same income that you are receiving each month are buying lesser items.
That means, it is wiser and better to start a 2nd or 3rd tap of income as soon as possible. That way, when catastrophe like Covid-19 comes, you are not so affected. Read here
For me, trading is by far the best online business and it can be profitable if one is willing to put in time and effort to learn. It has so low barriers to entry and minimal capital to open an account that I think, if you do not give yourself an opportunity to try out, you are doing yourself a great , great disservice.
But it is the same reason that can be easy to make money that lures many people into this game. And the greed and fear takes over , resulting in erratic performance. The psychology of trading as I had mentioned in my other posts highlighted the key ingredients to successful trading. It is a business that requires no inventory (imagine you are operating a fashion boutique shop and stuck with all these inventories because no one is coming out to shop), rental (zero rental for trading), employees wages (you are the boss and employee), operating costs (your trading losses, a laptop or mobile phone which most would have one anyway regardless you trade or not).
Think about it, to be an Amazon seller online or even if you attempt drop shipping, you need to find the products that customers want (lots of research), promote your site (no promotion needed in trading), cut throat pricing to beat competitors (no need to worry about pricing strategies),etc. So much work involved ! Nothing wrong with this model if you can make it work but all I am saying is trading is transparent, simple to operate and clean. The challenge is not not able to make money but to make money consistently.
And if you truly understand how trading works, you would not be afraid not scared to have more competitors as buyers or sellers. Because you need them to make your profits, simple as that.
If enough people believes my trading idea on Tencent is going to go up and they long together with me, then the scale is going to tip over the sellers and we win and make money. It is a volume game, there is no competitors as the market is like the sea, full of abundance. There is no need to worry that there is no enough shares of Tencent to buy or run out of AUDUSD long contracts to buy ,etc. For traditional business, you need to be fast, especially items that are trendy. You want to be the first few to have it sold online so you can demand a higher price before others start noticing and follow you. There is hardly any competitive advantage in it except chasing for the next trendy items. It is really tiring but so long you like it, then it is fine.
I hope this write up encourages those who are perhaps being retrenched, looking for jobs, in between jobs, etc to consider taking up trading. Take it as a hobby, a project, for fun to challenge yourself. Imagine making profits to cover the costs of your mobile phone bills or netflix subscription. How's that ? Then , move up the ladder slowly till more and more of your expenses can be covered by trading. At that time, you are not as worried like now for your full time job.
Life always offers us choices and it is the particular choice we made that determines our mood. Do not blame it on external circumstances , that is what we cannot control - anger, frustration ,etc would not solve the problem. Think strategically and get around the problems so that you are in control.
And when you are in control, you have peace of mind.....
In a way, I can say this Covid-19 has brought forward many underlying issues that many people faced in today's competitive society. The issue of "LACK OF"
Lack of money
Lack of love
Lack of resources
Lack of relationships
Lack of connections
Etc
There is a saying that goes something like this - when we point one finger one, 3 fingers are pointing back at you. That means, it is just as necessary if not crucial that we do a self reflection on the problems that we have.
Let's talk about lack of money since we are in this personal finance forum, others another time, another space. If money is constantly an issue in your life, then it is necessary that one takes ample time to diagnose the problems.
Savings - it is said that many understand the importance of savings but so few carried it out consistently. That is the word. It is not about saving 50% or one lump sum once and forget about it. It is better to set aside 15-20% each month for savings. The excess of 6 months savings to meet emergency needs (perhaps like now) are to be channeled into investments
Investments - with today's low interest rates offered by the banks, it is becoming a sin to still queue outside the banks and ask them to take your money. Even buying bonds offer you a higher yield (maybe not now)
What to invest, how long to hold, etc - it is better to consult your Financial adviser.
Income - this to me is the key. If you have a full time job that pays you monthly salary, then you have no excuse not to save x amount per month. If can't, then either you adjust your expenses lower or find a job that pays you higher. To do the latter, you need to assess the skills that you have that the Employer would find value in.
Gone are the days when we can rely on one single source of income and retire comfortably. We must diversify and have multiple streams of income. Some examples :
1. Your full time job - active income
2. Weekend - take on part time projects that pays you. In Asia especially Singapore, the common part time jobs include food delivery, tuition, swimming lessons, taxi driver,etc. I would include trading here as well.
On weekday during the nights, make an effort to take up some courses that are relevant to your day job so that you are keeping abreast of the industry development. That also open up opportunities for you to ask your boss for bigger responsibilities. And when the right time comes, you can ask for a pay raise and/or promotion.
I am often asked which is easier - to reduce expenses or increase income ? My take is the latter because it is infinite. Expenses especially the fixed ones like mortgage loan, education, transportation, utilities, groceries ,etc - you may reduce maybe 10% but anything more you may compromise the quality of life you have for your family. With inflation, the costs of goods are going to go up thus the same income that you are receiving each month are buying lesser items.
That means, it is wiser and better to start a 2nd or 3rd tap of income as soon as possible. That way, when catastrophe like Covid-19 comes, you are not so affected. Read here
For me, trading is by far the best online business and it can be profitable if one is willing to put in time and effort to learn. It has so low barriers to entry and minimal capital to open an account that I think, if you do not give yourself an opportunity to try out, you are doing yourself a great , great disservice.
But it is the same reason that can be easy to make money that lures many people into this game. And the greed and fear takes over , resulting in erratic performance. The psychology of trading as I had mentioned in my other posts highlighted the key ingredients to successful trading. It is a business that requires no inventory (imagine you are operating a fashion boutique shop and stuck with all these inventories because no one is coming out to shop), rental (zero rental for trading), employees wages (you are the boss and employee), operating costs (your trading losses, a laptop or mobile phone which most would have one anyway regardless you trade or not).
Think about it, to be an Amazon seller online or even if you attempt drop shipping, you need to find the products that customers want (lots of research), promote your site (no promotion needed in trading), cut throat pricing to beat competitors (no need to worry about pricing strategies),etc. So much work involved ! Nothing wrong with this model if you can make it work but all I am saying is trading is transparent, simple to operate and clean. The challenge is not not able to make money but to make money consistently.
And if you truly understand how trading works, you would not be afraid not scared to have more competitors as buyers or sellers. Because you need them to make your profits, simple as that.
If enough people believes my trading idea on Tencent is going to go up and they long together with me, then the scale is going to tip over the sellers and we win and make money. It is a volume game, there is no competitors as the market is like the sea, full of abundance. There is no need to worry that there is no enough shares of Tencent to buy or run out of AUDUSD long contracts to buy ,etc. For traditional business, you need to be fast, especially items that are trendy. You want to be the first few to have it sold online so you can demand a higher price before others start noticing and follow you. There is hardly any competitive advantage in it except chasing for the next trendy items. It is really tiring but so long you like it, then it is fine.
I hope this write up encourages those who are perhaps being retrenched, looking for jobs, in between jobs, etc to consider taking up trading. Take it as a hobby, a project, for fun to challenge yourself. Imagine making profits to cover the costs of your mobile phone bills or netflix subscription. How's that ? Then , move up the ladder slowly till more and more of your expenses can be covered by trading. At that time, you are not as worried like now for your full time job.
Life always offers us choices and it is the particular choice we made that determines our mood. Do not blame it on external circumstances , that is what we cannot control - anger, frustration ,etc would not solve the problem. Think strategically and get around the problems so that you are in control.
And when you are in control, you have peace of mind.....
Note
in 3 mins time, we will see this counter goes south as all other counters in HK stock exchange.Note
not that i like my analysis to come true as I am vested in this counter.Note
praise lord, congrats to those who followed.Note
praise the lord , congrats to those who followed all along .cnbc.com/2020/05/14/tencent-shares-hit-a-more-than-2-year-high-after-q1-earnings-beat.html
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.