Tuesday, July 26, 2016
#2 : Prepare cash
2.15pm : Got a comment ... and also an e-mail ... asking me, why do I need to sell 'everything'?
My next class is 2.45pm ... so, I hope I could answer in a shorter post. I m nearly 50 ... very cheong-hei type.
First of all ... my pointers #2 : Accumulation of bullets. If you have missed the post, I will try to find it and place it in 'page'.
One of the things I need to do is : SELL
I have three options : 1. Overdraft 2. Re-finance 3. SELL of my current apartment. It has doubled in price.
By selling it off, I could clear off my housing-loan and having some cash in hands!! Then, I will put the money safely into ASB (giving a good 7%) while waiting for crash!! Not to be used.
It will take me some time for me to be able to advertise, getting an agent and sell it off, anyway. So ... hope it wont take tooo long and market crashing before my cash is readied?
As for the office, decision to stop renting the office and sell off the furnitures (tables, chairs, whiteboard and everything!) so that I could re-coup some cash ... and not needing to pay monthly rentals(plus bills).
Whether it is worth or not ... I m still not sure. I don't know. I m just executing my plans ... preparing for the crash. Whether markets will crash or not, I do not know either. What I do know is ... IF ONE DAY market crashing down, I m prepared ... with cash/bullets to buy HUGELY.
Look ... there are two VITAL points to capitalise in market-crash :
1. SELL before it crashes
2. BUY when it is recovering
These simple points ... but 80% of retailers WILL miss ... and history will repeat itself.
Majority of retailers will STUCK inside stocks .... and could not cut-loss when market-crashing. A good example is O&G counters ... there are still SO SO many of them stuck inside. PROPERTY counters too ... the rally was over long time ago but they are still holding to the paper-loss. The PENNY-GST rally ... over too. The export-oriented stocks ... some still rallying ... some in downtrend.
MANY still inside .... buying yet failing to sell. Failing to cut-loss or sell befoe market-crash is a huge mistake as violated the pointer #1 : Capital Preservation.
Ok ... do let me know if anyone wish to buy my foldable bike for half-price ... or my books too. I will live my life frugally ... and in minimal-expenses ... and I told my wife/kids too. No more dinners @ restaurants ... no more expensive toys etc etc.
I need the CASH.
How do you see a RM10 note?
I m seeing it as RM20 to RM50 or RM100 ... as I could use it to generate profit ... during the crash.
So ... my RM100k might turn to be RM500k after the crash, see?
Do be prepared ... prepare as much cash as possible. SAVE ... be frugal. Live way below our means ... at least for this coming years .... I hope it wont crash soon too. I need to prepare .... more cash.
So ... I will be working at nights and Sundays too ... giving tuition and teach trading.
Time to go ... to give tuition ... to earn that CASH and SAVE inside the bank.