Taken from : 30th DEC 2008 post
Written by me : A novice who lost lots of money in Mac 2008 and Sept 2008. I was merely one year old in KLSE.
Well, being the last day of the year 2008, I know I have learned a lot about investing and trading. It will be a challenge to share with everyone on everything I have done. Some may sound so silly, some so tedious, but ... we all have our own way of LEARNING. That is EDUCATION to me.
Is the end results important? YES! Is the results everything? NO!
Results are NOTHING!!
PMR results just released and you could ALWAYS see our students getting better and better results each year!! Ever wonder WHY? 6% obtained ALL "A"s. Hmm ... I m one RARE lecturer who DO NOT bother what my students get. Not that I don't care, but I know their results are just a passport for the next level of Education. If they learn NOTHING else except GOOD results, they are a REAL failure to me. Of coz their parents and our STUPID society might want to argue about this.
Hey, ever heard of all those excellent students in PMR, SPM or whatever level living GOOD and HAPPY in their lives? Ok ok ... they might be doctors, engineers, accountants or whatever their PARENTS want them to be, but ... don't deny that YOU feel STUPID(regretting is too late, ok?) forcing your kids to get all the "A"s. Not forgetting spending TONNES of $$$ for their "education". What they obtained are called PAPER qualifications in order for them to WORK for others. Do you think they are SMART enough to earn THAT amount of $$$ you so-called invested in their 'education"? Get it right ... you are PAYING the price of that passport for them to work. Pathetic!! Many can't even be independent enough to THINK. Hmm...
I m not going to spark a debate with anyone about how I see my stupid surrounding parents(some are really pitiful as they REALLY thought excellent exams results are EVERYTHING!!) struggling to understand the whole meaning of education. Well, those of our students WILL be parents soon and they will REPEAT what their parents done to them!! Unless one fine day their minds open, the stupidity-cycle continues ... I have argued with my fella-teachers and recently with the head-master. KITA mahu semua pelajar dapat pangkat A, jika boleh. (We want ALL out students to get A, if possible). Stupid. Period.
Education is a journey
Ok, I m not going to expose your stupidity(and ignorance in terms of education). I m more into EDUCATION for INVESTING. As you could see, we DO NOT need high IQ people to excel in INVESTING. Ask Warren Buffett!!
I admit that I might be at the higher end of the IQ normal curve. Our average Malaysians IQ is at 98, lower that Singaporeans at average of 104 and Hong-Kies at 108. That is the stats I obtained years ago. I m not sure if there is a decrease in our population average in IQ(some of our MPs DEFINITELY below 98), but I wont be surprise. Afterall, every year we producing SO MANY scoring "A"s without appreciating the journey of their education!!
Higher IQ just giving me a slight advantage ... that is ability to analyse a little faster and could see clearer the whole pictures of the situation. BUT that is all the advantage, I could say. Also, being strong in my Mathematics helps a little. I could comprehend charts/graphs easier than normal humanoids. I could calculate the averages faster and could understand the meaning of compound interest and its wonder, just a little better than normal. I m NOT being humble here, but stating a fact that IQ and MATHS do not play a big role in INVESTING!!
What are the ingredients then?
Control your thoughts
I believe we have READ enough to know how crucially important our CHARACTERS and ATTITUDES in our lives. Some books used the term EQ(Emotional Quotient) and some said it is FQ(Financial Quotient). So, we need to recognise that to be SUCCESSFUL in investment, we don't have to be a rocket scientist(or Astro-naut). Just a normal IQ is needed and essential. Well, i have to say that many of our Malaysians IQ below 90(those without many simple common-sense) ... chances will be slimmer to succeed in investment.
For example those queue-ing in a LOOONG queue at TOTO/MAGNUM, in the cramped non-aircond shoplot while smoking!! You can't help this LOWER cow-dung head person, even if you want, can you? Yeah right, enlighten when they strike jackpot. Hmm ...
Anyway, we need recognise the importance of our EQ and FQ. You can't STUDY from text-book about PATIeNCE, can you? Or pro-active or taking initiative? How do you READ from book to be HONEST? In your MORAL subject in SPM? Haha. I m such a cynic. Hehe
THINK POSITIVE in every aspect of our lives, including when we invest/trade. So, help yourself with many many motivational books ...
The Education just begin ...
Once you could do that : Welcome to investment world. It is NOT the other way round. You may be an Economic guru, but if you do not have the RIGHT mentality, you will NOT know how to apply your theories. Ask Economics lecturers/teachers(surely they cant be millionaires?).
Here I would like to list the books I read for past one year. To me, it is an INVESTMENT in myself, my education.
1. Rich Dad, Poor Dad by Robert T. Kiyosaki
2. The Millionaire In Me by Azizi Ali
3. How You Can Get Rich from Property and Stock Markets by Milan Doshi
4. Idiot's Guide to Reaching Your Goals
5. Personal Financial Planning in Malaysia by BK Lee and Andy Ong
6. The Money Book by CAP
7. Money Is My Friend by Phil Laut
8. Cash Is King by Yeo Keng Un
9. I Love Stocks by Pauline Yong
10. Investing During Bull and Bear Markkets by Dr Othman Yong
11. Essential Stock Investment Strategies by Ho Kok Mun
12. Everything Technical Analysis by Jacinta Chan
13. How You Can Invest Like the Very Rich by Martin Wong
14. How You Can Strike Rich in Stocks by Bill Wermine
15. Millionaire Exit Strategies by Bill Wermine
16. Secrets of Millionaire Investors by Adam Khoo and Conrad A Lim
17. Guide To Investing by Robert T.K and Sharon L.L
18. Top Moneytips For Malaysians by KC Lau
.... and many more from library. As for magazines, I only buy the weekly THE EDGE(stopped since last week!!) foor a year, without a miss. Other magazines, I will read it in the library such as Business Malaysia, Economist, Personal Money and such. Of coz I read a lot through internet. Also reports from broker houses : OSK, CIMB, JPMorgan, UBS.
With that said, my EDUCATION reached 20% of what I m setting out to obtain. 20% as I m setting my GOAL for 5 years. Yes, well-planned ahead. Of coz I do know MANY in KLSE much longer than me but do not see the needs to educate themselves. We all have our own goals, k? To me, I love Education ... so, I want to end-up teaching some about INVESTMENT, or may be trading(I won't charge high fees as by then I SHOULD gained much from the markets?).
Hence, while I m learning ... I m also teaching here in my BLOG!! Hehe. The lessons are FREE. It is meant to be shared as I believe WE ALL learn from each other. Some experienced ones will share their opinions ... Thanks again for those help me along. God Bless.
Make this your RESOLUTION : I WANT TO LEARN ABOUT INVESTMENT. You will not regret that as next year the global economies present us the opportunities to gain, financially. DONT DREAM ... start doing. ASK around, or ask me how to start ... JUST DO IT.
HAPPY NEW YEAR, 2009.
p/s: Sorry as I might sound a little FRUSTRATED when I mentioned about EDUCATION. I m living with so many un-educated people around in education line?