Saturday, 21 April 2018

Cutting down trees by using a small knife


Today I would like to review an old article that I wrote at year 2013,
and add some new ideas.

 Old article starts here:
Some people only own a small knife,
but still wants to use it to cut down a tree.
So they tried very hard to cut the down,
and put into a lot of times in studying the best way to cut a tree,
how much strength should I use?
Which angle should I cut?
Is it that I need to continuously cutting it 24 hours no rest?

 Actually................
the best way is to find a sharp axe,
then only can cut down the free faster and more efficiently.

 The key of facing a bear market,
is when it comes,
what will you be holding in your hand to face it?

 A small knife?
An axe?
A gun?
A pistol?
A submachine gun?
A Grenade?
A nuclear bomb?

 Not only that,
experience also plays an important role at facing bear market.

 If you are lack of experience,
even though you have a grenade in your hand when the bear appears in front of you,
but your hand keeps shaking and not dare to throw the grenade because you are lack of practice,
you can't survive the attack from the bear.

 However,
if you have a lot of experience and always practice how to shoot,
even though the bear appears suddenly in front of you,
you will not panic and just take out your gun to shoot the bear,
and kill the bear.

 That's why I think experience is important too.

 Someone with strong weapon and a lot of experience is the best.

 End of old article.
So.........
what exactly is the small knife?
How about the tree?

 I think a lot of people already figured out,
small knife meant low income,
tree meant a lot of money.

 Basically,
if the income is too low,
every month can only save two to three hundred dollars to invest,
but hoping to earn million of dollars in shares market,
is equal to try to cut  down a tree by using a small knife.

 Instead of spending most of the time in studying shares investment,
is better to spend those times in trying to increase the income or getting more investment capital,
throw the small knife and get an axe,
then can cut down the tree quicker.

 I learnt this not long after graduating from university,
that's why I never go to get a job,
for me the job salary is like a toothpick,
how many years and months I need to cut down a tree by using toothpick?

 Then investing experience is important too.

 Even though you have million of dollars,
but having a lot of money doesn't mean you automatically become a good investor.

 Let's say you bought a shares during bear market,
the shares price dropped again, and you sold it because you are scare.
Then you buy again, and sell again when it drops,
again and again,
you will end up losing all the money no matter how many money you have.

 The worst case?
Buying the worst company shares during bear market.

 So when will the bear market comes?

 I DON'T KNOW, I AM NOT GOD.

 Like what I mentioned in my article <<My investment strategy for upcoming General Election>> which published at 6th April 2018,
The important thing is to HAVE A PLAN.

 Plan well.
If bear market does comes, I will bla bla bla............
If bear market doesn't comes, I will bla bla bla..............

 I will show you some bad planning:
1)If bear doesn't comes, I will ALL IN in shares market, earn as much as I can.
If bear does comes, I will cry and complain everyday, then go find my mum for help.

 2)If bear does comes, I will use all the money I prepared to buy all the shares of good companies.
If bear doesn't comes, I will just keep on waiting, and ask people everyday the same question: Is the bear coming?
Wait for 10 years, all the people around me already gotten rich by investing in shares, and I am still waiting...........

 Those are the bad plannings in my opinion~

 Anyway,
think carefully, plan carefully,
then only invest.

 Investment is about doing own thinking, making own decision.

 Thanks for reading.
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