Nenix Dreams

Read more on value investing if you wish to "beat the market". That's one good way of building wealth slowly, instead of in a hurry. Rash decisions never make for good investments.

Decisions to buy or sell should be made under objective, rational conditions. Proper temperament and detailed computations are required to earn a decent return on investment. Read up more on Warren Buffett and Benjamin Graham if you are keen to find out.

Good luck !

 

does he look like he is contented with being a millionaire at 40? he seems far more ambitious than that, just that 40 seems to be a good buffer in case anything goes wrong which i presume will be in the near future. it is apparent he can;t stop trading despite the market going downwards.

 

The market is going upwards, not downwards. That is the reason why more and more people are trading instead of investing.

 

Thanks musicwhiz for pointing out. I guess I should calm down a bit. And after my exams, I will consider incorporating fundamentals into trend following. Will read those book you recommended, i think my bro has it.

Ideally though, maybe riding on trends backed by strong fundamentals will reduce uncertainty. Maybe fundamental factors can act as a mechanism such that equities with very good fundamentals need not be so fully tied to the trigger point.

To the anonymous user, I have in fact cut on my trades. February and March has been a crazy time for me, like I mentioned, suffered from over trading and over diversification. Being a millionaire (inclusive of all your assets) is not an unreachable target in my opinion. Right now, I'm putting in $100 a month into my investment pool and I'm doing relatively ok, despite losing to the market at the moment. When I graduate, I will have more capital for investments, which will be a good thing.

Right now, I am only a small time, low net-worth retail investor whose blog is being overhyped in CNA forums. (Not a bad thing I suppose, as I have received valuable feedbacks)

 

Hi Nenix,

Actually, my take is that being a millionaire is not easy at all. Firstly, remember that most Singaporeans are tied down by debt (whether it be car loan, housing loan or credit card loans). This means that the value of your home cannot be fully realized as it is usually on loan and belonging to the government (e.g. HDB flat) or it is a depreciating asset (e.g. car).

I think the most prudent thing to do for most people would be to aspire to be financially free (i.e. having net tangible assets instead of net tangible liabilities). Personally, I myself am trying to clear my housing loan debt through investing and slowly building my wealth through investments and savings. Remember when you start work that saving more than you spend is of utmost importance. Don't be too rash in deciding to buy that new car or new gadget with your first pay packet, as it usually leads to a vicious cycle of instant gratification first. Ultimately, it may lead to financial difficulties if not controlled.

Once I have achieved my objective of having more cash than liabilities, then I can concentrate on building my wealth. Even then, a million would seem a lofty goal. For me, as long as I can achieve 100-200% returns on my investment, that would be a very good result already. Currently, I have S$40k (cost) invested in the market.

 

I agree.. Loan debts will be an issue in the future.

And while I said that its attainable, it is by no means easy. What I think I have advantage over the others of my age at the moment is that I don't have any study loans, laptop loans etc to clear when I graduate. So i can focus on asset accumulation now. I feel I could be better though.