Fearless Investing
For many investors out there, it must have been a nightmarish experience for the past few months given the massive stock market decline. During this Chinese New Year long weekend, many Singapore investors and bloggers took this opportunity to take a break and recharge their batteries. Many choose to stay away from the stock market because they cannot bear to face the reality that a huge portion of their wealth just vanished into thin air.
Panic. Fear. Self doubts. Depression. Anger. These are the common emotions that have been displayed over and over again in many investors during the many stock market corrections. Unless you are a robot, you would have experienced some of these emotions if you have been vested in the stock market in the past few years. To be successful in investing, you must take the emotions out of investing. Not many people, including me, are able to achieve this. To achieve fearless investing, you must really be a disciplined investor and set entry and exit levels for every stocks that you purchased.
To be a fearless investor, you must have knowledge of the market and be precise in your execution. To do so, you need data for decision making. And knowledge is king in the world of investments. However, the problem in today’s Internet age is not the lack of investment data. Rather, it is the overwhelm of data that makes the average investors lost and confused. In my point of view, you need at least three important data to be fearless in your investment.
Firstly, you must understand the business aspects of the companies you invested in. These data can be retrieved from the quarterly or annual reports released by the companies. Secondly, you need knowledge of whether there are insider trades or company shares buy-back. You need to be wary if the directors are offloading their shares in huge amount because there might be many underlying reasons for them to do so. Conversely, if the companies buy back their shares, it means they have a lot of confidence in the companies’ growth prospects.
The most critical information is knowledge of the Big Boys’ movement. Typically, they are the movers and shakers of the market. They can dominate and influence the movement of the market. If you think that tracking the Big Boys’ movement is akin to herd mentality, then you are wrong. This is because no matter whether you like it or not, you are not going to out-wit the Big Boys, who ultimately control the game. By going with the flow, you are swimming with the whale (the Big Boys). Going against the tide will only destroy your wealth. In essence, by joining the side of the Big Boys, you have become the predator and not the prey.
With the first and second set of information listed above, you can probably win the market 50%. With the third set of information, you will have added confidence and be a fearless investor, regardless its bull or bear market.
If you knew that the Big Boys had taken positions to bring down STI to 1800 level several months ago, what position would you take? There are three ways to deal with this situation. You can choose to avoid investing in equities and buy safe haven products like bullion. Or you can choose to join the side of the Big Boys and short the market indices. Or you can opt to go against the Big Boys. The last option may not be wise because unless you have some information which the Big Boys are unaware of, it is unlikely you can win them.
To this end, SG Wealth Builder is pleased to join force with Dave. Watch how the guru strategize and learn from him on how to trade. This blogger has a passion in trading and like me, understood the importance of respecting the big boys’ movement. Some features of his membership website:
1)My Daily Potential Trades
2)My Daily Trend Analysis
3)My Spotting of Big Boy’s Movement – Unique and Powerful!!
4)My Weekly Trend Analysis
5)My Weekly Dow Component Analysis
6)My Recent Trade Summary
7)Strategies to use in different situations
8)Entries, Stop Loss and Targets
9)Exclusive Articles of unique movements
10)Wealth eBooks specially written for VIP Traders
The unique portion of his site is that he combines Technical Analysis (on charts) and the movement of the Big Boys (as seen in the derivatives market) to form powerful trades. I was inspired by Dave and realize the importance of learning and earning. So I encourage readers to subscribe to his membership site as VIP Trader. Remember to quote the discount code: “sgwealthbuilder” to enjoy discounted subscription of USD49 per month.
Magically yours,
SG Wealth Builder
