Thursday 11 February 2021

Happy Chinese New Year!


You all stay safe and chill OK?

And enjoy the moment with people that matters.

万事如意, 家家平安!

Friday 5 February 2021

Inflation and Gravity


I've always thought gravity is the force that pulls me down to Earth. If not, I would have floated into deep space.

Then as I watch more documentaries about Cosmos (I love to watch documentaries), I realised its in fact the curvature of spacetime that's pressing me down to Earth!

Its a subtle difference.

The same goes for inflation.

If you define inflation as things getting more expensive, you'll probably accumulate more money to combat inflation.

But if you define inflation as money getting smaller and smaller as in worth less and less, would you still be accumulating more money to combat inflation?


Tuesday 2 February 2021

Great! They are moving on to the asset I own!



Monday saw a quick gap up on the asset I've owned for years now.

Friday evening there was already chatter that the "avengers" crowd - retailers looking out to punish the establishment elites - are targeting the asset I'm vested in.

Sure enough, on Monday morning, the futures price gapped up like a rocket!

To show how volatile it is, if I had entered a small speculative futures trade Monday morning on a pullback, I would have been quickly up a few hundreds by noon. And by the time it reached US opening time, I would have been up a few thousand dollars. 

(Of course I've left out the heart stopping up and down gyrations that would have stopped-out anyone who practice money management as in using stop orders - especially on leveraged instruments.)

When I woke up this Tuesday morning, guess what? 

I would have stopped-out at breakeven right out of the gate when the market opens as prices tanked - I've got this trading rule to never let a winning position turn into a loss.

But the current price is still higher than Friday's closing price.

No, I sitting this one out from the trading side.

I can't participate when the price volatility is too wild for my money management rules....

But I do own this asset (not tiny size either) - that's the non-leveraged side in my investment portfolio. 

My entry price is a lot lower than current prices. 

So can withstand the current volatility. In fact, I welcome it! 

Who doesn't love higher prices on assets that we own?

I'm now focusing on how to profit best from this interesting mania episode emanating out from US.

Hope I will be as good as those who owned Bitcoins at below $10K. 

You know, sell a portion near the intermediate top around $40K, and buyback at current prices around $32K?

Make a spread of $8K, but still retain the same long term core position after buying back to ride Bitcoins all the way to $100K?

Of course not easy!

In case you didn't know by now, the selling or taking profit part is how we tell apart the pros from the amateurs. Wink.

No, I don't want to reveal what's that asset class; I don't want to talk up my own book.

If you're following what's going on in the US markets (not a STI only koala), you'll know what's the asset I'm talking about anyway.

No one so stupid to tell others that this stock good, better, best for investing/trading without first getting vested at much lower prices.

Similarly, no one so dumb as to so well meaning warn others this stock is a possible fraud/scam without first selling or getting short before hand at higher prices.

So when you believe 100% what institutions tell you, you're not as bright as you think...

And if you believe totally what other anonymous bei kambings (some are wolves in sheep clothing) in the internet forums say, you're probably not as wise as you think too!

Readers may want to read: No, you're not their customer

I guess those "avengers" customers in the States found out who the real customers of Robinhood are the hard way.

I mean they never stopped to think how do brokers make money when there's no trading commissions???

How about social media forums, blogs, or well meaning friends and acquaintances? 

Well, if you have been practicing others buy I buy; others sell I sell - just look at your portfolio or trading account.

Nothing beats when tire meets the road reality!

Look, if I'm looking into selling a portion of my asset holdings to take advantage of this current "avengers" mania in US, would I be telling you I don't think this move up is sustainable?

For anyone not vested, it would be better to wait for a pullback to a longer term support at much lower prices if you want to get started on slowly accumulating for a long term position?

No, I would be telling you anytime is a good time to invest!!! (That's the dead giveaway that person is probably a snake oil)

Better buy now! Wait prices go higher! You'll miss the boat! (Double confirm)

Long term investing is about buying cheap and selling when its expensive (its not buy and hold). 

It can't be cheap when everyone and anyone is buying or talking about it.

Trading is about finding the greater fool to offload your positions onto.

Do be offended if others like to offer you "free" advice. Yup, they're probably treating you as their greater fool!


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