By Editorial Team The Active investing vs Passive investing war has been going on for years. Proponents of the active camp insist that it is better to invest with fund managers who will proactively put your money to good use. After all, they are the professionals who have deep knowledge of… …read more
By Lionel Yeo
So the wifey and I were at the supermarket this weekend (because that’s what married Singaporean couples do on weekends, amirite?).
As you know, I’m fascinated by the psychology of sales. So while we were shopping, I started to observe the promoters who were scattered around the supermarket.
You know the ones I’m talking about: Those earnest-looking folks who have a little pop-up stand next to the aisle, hired to give out free samples and convince passing aunties to buy a particular brand or product. I’d never paid much attention to them before, but today, I started wondering:
- What’s their job like?
- How do they get paid? A fixed hourly pay, or a commission for every product they sell?
- Do they get frustrated? I’m pretty sure 90% of customers just want a free sample
- And most importantly: What can I learn from them?
The Millennial Promoter
Let’s take Exhibit A: A young promoter for Magnum ice cream. He couldn’t have been older than 22, and looked like he was just passing time during the school holidays.
We wandered over to the ice cream tubs and started looking really interested at the ice cream. Our promoter slided up next to us, smiled and started with a, “Yep, we’re actually having …read more
In the world of trading, I’ve learnt from painful experience its better to take a quick and small realised loss than to suffer a conviction sapping and margin eroding unrealised loss.
Once I have cut loss; I feel relieved.
Money can lose; but presence of mind cannot.
Same goes for the investment side of my portfolio.
Not taking profit can mess with our minds too.
Take for example – M1, a stock I’m not vested in.
If you had bought in at $1.50 during 2009, you would be a most happy retail investor during March 2015 – M1 hit $3.94!
That happiness was short lived as by May 2015, it broke below $3.50.
Some of you wily old fox retail investors may have sold all or half your position here.
Any lingering doubts whether you have done the right thing are all cleared out during August 2015 when M1 broke below $3.00.
This was your last chance to protect your 2 bagger winnings.
Want to guess how the person who didn’t sell at $3.00 is feeling now?
Would he join others in adding to M1 at below $2.00 since its “so cheap”? Or would he be more likely to “capitulate” and sell if M1 drops down to $1.80? Surely he is not …read more
It’s quite easy for us trading veterans to sniff out whether a blogger is writing from personal experience or just copy paste (more polite word for plagiarism) from some other official sources.
By Lionel Yeo
What are some of your most deep-seated assumptions?
You know, stuff that you’d never even think about questioning. Like:
- “You need a college degree to be successful”
- “Investing is about how well you pick stocks”
- “Donald Trump will never win the election”
How about this one: “Credit card fees are a waste of money”
Are they really?
Let’s think about this for a sec. Sure, no one likes paying annual fees, but what if I told you that it could help you travel on First and Business Class at a fraction of what other people are paying?
In this post, I’ll show you how to do exactly that, using a strategy you can start implementing today.
The Miles For Fees Strategy
When I got my first credit card, all my friends said that I should NEVER pay the annual fee.
“Just call the bank and ask them to waive the fee! It’s just a way for those rich douchebags to eat up even MORE of our money!!!”
And so I followed their advice. For the first few years, I’d faithfully call up Citibank to ask them to waive the fee. (I was using the Citibank Clear Card back then, with the sole reason that it gave me free entry to Zouk. Because …read more
By Editorial Team Aspiring dividend investors aim to create a dividend income stream from their investments. In order to create a sustainable income stream, we are often challenged to look for companies that are able to sustain their dividend payouts regardless of how well the economy is doing…. …read more
The highest interest a fellow blogger got from his peer-to-peer lending “investments” is 18% interest per annum.
Already a sizable “discount” from the 25% that credit card companies charge for unsecured “loans” from individuals…
But if we compare against high yielding junk bonds, 18% is a lot better than the 6.5% yield Swiber bond holders got.
Well, so much for accredited investor “status”…
Some learnt the hard way that seeking out a vehicle yourself that you bought into is not the same as the one you were sold to.
Bond traders were once upon a time known as Masters of the Universe.
I personally think they still are.
There is a reason why there are so few retail bond investors/traders out there.
OK, I’ll concede the minimum $250K a lot is one deterrent. But we have the retail friendly Singapore Savings Bonds. Why the lack of retail interest?
I think we know the answer intuitively.
To be in the usury business, we need to be smart. Not just smart; but brilliant …read more