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Tuesday, 4 June 2013

Photography, Trading, and Investing


HK trip May 2013


If you look at the photo above, do you feel uncomfortable? Like something is unbalanced?

As are a trader, do you see an opportunity to fade the market? If everyone is on the same side of the trade, taking the opposite side of the trade can be extremely uncomfortable, and profitable. Others talk contrarian; you act.

As an investor, you believe in putting all your eggs in one basket. Focus and concentration. You swing for the fence when the opportunity arises!   



HK trip May 2013


Visually, this 2nd photo looks more pleasing. But I would rather submit the 1st photo if I'm entering a photo competition. No one takes a 2nd look at "pleasing" photos...

As a trader, can you see a good risk/reward trading setup? I'll pass. It takes discipline not to trade. (OK, if you force me, maybe there's a momentum trade possibility...)

As an investor, you believe in the Modern Portfolio Theory. You spread your asset across different asset classes, and you rebalance them from time to time to ensure no one asset upsets the balance of the whole portfolio. 

Lucky I am not US investor - stocks near all time high, US treasuries' interest rates moving up... How to rebalance between the classic stocks and bonds mix? Emerging markets high yield debt? But you need to hedge against adverse currency movements against the USD. Shit, have to understand currencies!?    

What? You invest in equities only? Then you are no different from the investor in the 1st photo - yes, even if you own 100 individual stock counters. Just look how your "diversified" equities portfolio performed during the 2008 melt down. 

It's one basket no?



23 comments:

  1. The greatest risk or threat in investing/trading is not meeting our yearly goals and achieving our ambitions for doing it.

    Final measure of success?

    ReplyDelete
    Replies
    1. CW,

      I can understand your fascination with goals. I believe in measuring; but no more goal settings for me liao.

      I now care more about being in the moment. No forecasting or planning for the future. Letting go of the past.

      1. The greatest risk in trading/investing in my humble view is thinking that I know...

      2. Success? If the doctor says I got 3 more months to live, I no crying or complaining why me? I am at peace as I've lived. If I pass this test, I not sure it's a success; but I go smiling. And not looking back :)




      Delete
  2. It's ain't over till it's over (Till you say "Sayonara").

    ReplyDelete
    Replies
    1. temperament,

      Or till the fat lady sings ;)

      No offense; but I sometimes wonder why retirees in their 60s are still punting in the stock markets...

      I got the answer when I see 80 plus aunties and uncles queuing to buy Toto.

      You are right - it ain't over till it's over.

      Delete
    2. Why 80+ still punting the market?

      Keep punting the stock market as it will keep our mind and heart very active

      Read? How to prevent dementia?"

      :-)

      Delete
  3. Replies
    1. Ha ha!

      Good one AK!

      Anyone who listens to the wisdom of Hokkien songs is definitely down to earth and not pretentious.

      I think we can be happier if we do less "benchmarking" ;)

      Delete
    2. Hi SMOL,

      Er... Simi benchmarking? Marking benches in Singapore is big time offense hor unless we own the benches lah. Vandalism, I think it is called. I always make sure I don't leave marks on benches one hor. So, to anyone who is reading this, please don't do benchmarking in Singapore. It is illegal!

      Delete
    3. haha, i seconded AK,

      always used so chim english, my dictionary also don't have.

      Delete
    4. 1) Hey! Kenna bummerang!

      You very funny AK... (%&&#$@!!^@*@!*)


      2) Coconut,

      Opps! I am guilty as charged.

      Must give chance la!

      Cannot always tell girl she pretty. Must vary and mix it up once in a while. Next time try telling your significant other she looks scintillating ;)




      Delete
    5. Hi SMOL,

      Funny meh? The funny ones are those who don't leave marks on benches but decide to stick chewing gum on them lor. Definitely not scintillating! But I can come up with some scintillating expletives!

      &$^#%@*!KNN&$^#%@(!)KNS#^&@(!

      @_@

      Delete
    6. AK,

      Wow! Slipped in KNN and KNS.

      NS has served you well ;)

      Delete
    7. Hi SMOL,

      Simi NS served me well? I served NS well hor!

      @*$&@#!K_NS^*&%$#!

      Delete
    8. AK,

      My apologies!

      (Mental note to myself - never quarrel with soldier)

      Snigger, snigger

      Delete
  4. Hi SMOL,
    CW8888 is right. Even now if i have more $$$ than "enough" i will still learn all about investment. Of course i think i should even do better because i can "pang sim" punting the market liao. If not i will be looking at sky and the sky looking back at me, daily.
    Ha! Ha!

    ReplyDelete
    Replies
    1. Yes temperament and CW,

      I agree.

      It's a rhetorical question since all of us need a reason to get up in the morning.

      To some it's hope. To others it's responsibility or work. Some because of love. Or any other myriad reasons that matter only to us.

      We are like the bird with no legs.

      We need to keep flying. The day we don't feel like flying; it's the day we forever rest...

      Delete
    2. of cos of cos, then why you think the stock market comes from? to fullfil our inner desire to take risk!

      gambling is good!

      Delete
    3. coconut,

      Only you can tell the truth so bluntly and blatantly so!

      The truth is it's better to build a business and then take it public and SELL shares to the public.

      But most people are too lazy or too afraid to strike out on their own. So we BUY shares to give us the illusion that just because we own some fractional shares in a company, that makes us "business owner" too.

      Little lies we tell ourselves.

      Delete
    4. very funny, today market down a lot but i'm not too busy, afternoon still can take a nap.

      i don't know about you and others, i buy share but i don't feel like i'm the biz owner, i'm in for capital gain with no emotional attached to it.

      ofcos thats a wrong way to approach in investing, and that is why i'm a bad investor. i began to have the feeling that i hated business all the while, what a "cheating" game!

      Delete
    5. i'm in business before, a piece of bread that cost less than 20 cents, i sell them at $1.50! people are willing to buy, who cares.

      if thats not cheating, wait! thats how i feel when people gives me their money for the bread, then what is cheating?

      Delete
    6. how, is that "truth" enough? haha

      Delete
    7. coconut,

      There you go! Those who owned business will understand:

      Money is made by SELLING a product or service to others.

      If you add some fancy packaging and print a foreign sounding brand on your bread's packaging, you can sell them for $6.00!

      Willing buyer; willing seller.

      Most would not admit (I admit with hands up), but most of what we buy (and that include stocks) is because we have bought the "sales pitch" by marketers or pressure from our peers.

      How I wish I can do more independent thinking!

      Delete
    8. ya, knowing it does not means i'm against it, i love capitalisim, i'm just no good at it, period!

      i'm a willing and understanding sucker haha.

      Delete

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