Tag Archives: recipe

Power of Compounding Interest: Secret to Financial Abundance

20 Jan

Often times, we heard someone lament how he/she wished that they are wealthy or came from a rich family. They often spend most of the time thinking and dreaming what they would do if they are loaded with cash. I believe most people do think of that at least once in their lifetime. After much toiling and failure to accumulate wealth, they started to think that financial independence is beyond their reach. They gave up their dream to pursue financial abundance. There were also stock investors and traders that had lose their fortune in the stock market. They too, gave up their hope to make their millions and started to see the impossibility to beat the market. Quite contrary to popular belief, financial abundance is actually within the reach of every single human being that is financially literate. If you are one of them, fasten your seat belt and join me in the journey to uncover one of the most wonderful discovery of the world and that is the discovery of the "Secret of Compounding Interest".

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Price vs Value – The key to successful investing

24 Nov

Most people won’t be able to distinguish the differences between price and value. To them, they are the same. In reality, it is not the same. If price and value is the same then we would not need to consider so much when it comes to purchasing anything in our whole life. We just walk to the stores and pay for what we need. In fact, the former sentence got a catch in between the lines. You see, what I need is not what you need. So how can the value be the same for everyone? Why is this question important in the first place? If we are able to answer this, we will be able to unlock the fundamental concept of value investing.

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Patience – The key to successful investing and trading

1 Jul

"Wait….. Wait….. Wait….. NOW!" this phrase is often heard in war movies before they strike the enemy. Patience whispers to us to wait for the right moment before striking. Patience continues its echo in nature and also in many aspects of our life too. This is the principles behind many successful people and this is one of the very important traits for investors and traders. It doesn’t matter whether you are investing for the long run or doing short term trading or even day trading, patience is the key to your success. I can’t stress enough on this. Let’s see how we could improve our investing skill and trading timing with patience as one of our virtue.

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Mathematical reason for cutting losses quickly

19 Jun

Let me tell you a bad news. Losses are inevitable. You are sure to loss some amount of money in your trading journey. If you think otherwise, then trading is definitely not suitable for you because 100% profits all the time is an illusion. However, the good news is that we can manage our losses in such as way it will not destroy us. In trading, we often times hear that we should let our winners run and cut our losses quickly. For most of us, we know it in our heads but not in our hearts. We human are creatures of hope and that is the main reason we are able to survive no matter how tough the situation is. However this habit of hoping is not good for trading. That is the main reason why many people are not successful with trading as a profession. Today we will look from the perspective of mathematics and see why we need to cut losses quickly.

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Success recipe for trading and investing

14 May

Many people are searching for the holy grail of trading and investing. Is there one out there? Surely there are techniques to give us a trading edge but that alone is not sufficient for us to be successful in the profession of trading. The way to be successful in this field is to take a holistic approach. I have break down the success recipe for trading and investing into 3 main pillars. They constitute the main ingredients for trading and investment success. Follow the recipe below to achieve your financial goals in the financial market.

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