Something you need to know before you start to invest in stock market

10 Maxims, from Sir John Templeton, a person who was a well-known investor and mutual fund manager. He became a billionaire by pioneering the use of globally diversified mutual funds. He is noted for buying 100 shares of each company for less than $1 ($16 today) a share in 1939 and making many times the money back in a 4 year period ( but I hope my customers can earn money 4 times period per month :P, learnt from my manager). However, he rejected technical analysis for stock trading, preferring instead to use fundamental analysis. He was named as " arguably the greatest global stock picker of the century" by Money Magazine.

There are 10 things we must keep in mind while trading in stock market, either using fundamental or technical analysis. These are very useful as we can minimize our risk. Always remember that, stock perfomance is basically from the emotional outcome of the major investors (players). We are not able control our emotion easily. For instance, when the good news come out, people would normally loss their control and follow others to buy the particular share, but they wont know that, when they bought the share, there are actually someone who already took profit and left the game. So, just read these 10 maxims from Templeton, and try to recall back, are you doing the same mistake again and again ?   

1. Invest for real returns
The true objective for any long-term investor is maximum total real return after taxes.

2. Keep an open mind
Never adopt permanently any type of asset or any selection method. Try to stay flexible, open minded and skeptical. Long term top results are achieved only by changing from popular to unpopular the types of securities you favour and your methods of selection.

3. Never follow the crowd
If you buy the same securities as other people, you will have the same results as other people. It is impossible to produce superior performance unless you do something different from the majority. Buying when others are despondently selling and selling when others are greedily buying requires the greatest fortitude and pays the greatest reward.

4. Everything changes
Bear markets have always been temporary. And so have bull markets.

5. Avoid the popular
When any method for selecting stocks becomes popular, you will need to switch to unpopular methods.

6. Learn from your mistakes
'This time is different' are among the most costly four words in market history.

7. Buy during times of pessimism
Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.

8. Search worldwide
To avoid having all your eggs in the wrong basket at the wrong time, you should diversify. When you search worldwide, you find more better bargains than when you monitor only one nation. You also benefit from more safety thanks to diversification.

9. Hunt for value and bargains
Too many investors focus on outlook and trend. Therefore, more profit is made by focusing on value. In the stock market the only way to get a bargain is to buy what most investors are selling.

10. No-one knows everything
An investor who has all of the answers doesn't even understand the questions.

These 10 maxims are actually extracted from a blogger, "HowTze浩知". He also like to share something relating to the investment and finance.

sir john templetons 10 maxims

Ideal suggestion for Sales Manager

"Challenge" !!!
SALES TARGET: 2,3,4 times of your basic salary??
NO ENOUGH !!
I want 5 times or even 10 times !!!



Sucker Punch

A meaningful sentence I'd like to share with those salesgirls or salesmen.
The word "Stressed", is actually a "desserts" after you overcame it. Don't believe?
Just reverse the word "Stressed" then you can find out the answer.

Challenge ~~



25歲前你應明白的25句話

Just read an article, quite meaningful, especially for those who are getting into "Social University" .
非常有意思的25句话：

1.用快乐去奔跑，用心去倾听，用思维去发展，用努力去奋斗，用目标去衡量，用爱去生活。
2.嫉妒是一把刀，最后不是插在别人身上，就是插到自己心里。
3.停下休息的时候不要忘记别人还在奔跑。
4.一个输不起的人，往往就是一个赢不了人。
5.年轻的朋友，请不要把生活当作风景画来欣赏，也不要把生活当作沙发来坐卧。
6.对朋友的失败，请闭上你的眼睛；但对他的劣迹，请睁开眼睛。
7.大海若没有千尺深度，哪有如山浪头。
8.雨骤，打不湿鸭子的翅膀；狂风，吹不灭萤火的灯光。
9.不生气要争气，不看破要突破，不嫉妒要欣赏，不托延要积极。
10.心态决定状态，心胸决定格局，眼界决定境界。
11.过错是短暂的遗憾，错过是永远的遗憾。
12.机会从来就不会失去，你错的别人会接住。
13.朋友落难的时候，主动伸手拉一把，自己不顺的时候尽量不要去麻烦朋友。这是交友之道，也是为人之道。
14.成功者总是在处境不佳时振作起来，从而改变处境；失败者总是在处境不佳时自暴自弃，结果处境更加糟糕。
15.沉默不是简单地指一味不说话，沉不住气的人容易失败，适时的沉默是一种智慧、一种技巧、优势在握的心态。
16.性格本身没有好坏之分，乐观和悲观对这个世界都有贡献，前者发明了飞机，后者发明了降落伞。
17.若要优美的嘴唇，就要多讲亲切的话；若要可爱的眼神，就要看到别人的好处；若要苗条的身材，就要把你的食物分给饥饿的人。
18.真正的好朋友，并不是在一起有说不完的话；而是在一起，就算不说话，也不会觉得尴尬。
19.在思想上大手大脚，在生活上适可而止。
20.当你认为自己一无所有时，你至少还有时间，时间能抚平一切创伤，所以请不要流泪。   
21.对亲人最大的爱，是看好自己，别惹事。
22.木桶最短一截决定其容量，铁链最弱一环决定其强度，人最大缺点决定其是否成功。
23.人生为棋，我愿为卒，行动虽慢，可谁见我都会后退一步。
24.不是生活决定何种品位，而是品位决定何种生活。
25.爱人是路，朋友是树人生只有一条路，一条路上多棵树，有钱时候莫忘路，缺钱时候靠靠树，幸福时候别迷路，休息时候浇浇树。

From : 25歲前你應明白的25句話

Why do we need to do investment ?

I found that, nowadays, some people are not really aware of the importance of the investment, or, they dont really understand "the nature of the investment".

In most cases, when talking about "investment", people would probably answered me" I have no money". After 5 years, I asked them the same questions. more than 80% of them answered me the same answer; 6% of them began to have interest on investments; 10% told me that they have already invested and in the learning process; the rest, no comment (perhaps they have made alot of money from investment and they are socalled low profile person).

However, have you ever thought that, five years ago, RM1 for 1 "teh ice" (Ice tea in english, 50% of teh, 50% of ice), now RM1.50 for 1 "teh ice" (70% of ice, 30% of teh), and sometimes we even need to request for "kurang ice (less ice)" ! What happened to those "mamak" ?! 

Time erodes money??



Then now, have you ever imagined that, 5 more years after, RM2 for 1 "teh ice" (? % of teh, ? % of ice). You might say that, "Malaysian economy is growing lah, that is why!" But, think about your salary, is this increasing year by year? If yes, you need to invest more. If no, you still need to do investment. 

So, what the hell investment is?

Quite simply, let your money help you to earn more money without physical overexertion. 

Have you imagined that, you need to pay installment for your car every month, suppose it is RM550 per month, you dont need to pay this by using your montly salary but your investment instruments.Through the investment, you will get extra RM550 ( or more than this amount) to pay your car loan.



When dealing with these factors, you are just a "little flower"



First of all, I need to clarify one thing, investment instruments I mentioned ARE NOT involved in any pyramid scheme or direct-selling. Im not going to promote the advantage of direct selling or pyramind scheme. The investment instruments I mentioned are those securities products like share, unit trust, futures & options, commodities (example: gold), currency, treasury products, bond, Dual Currency Investment (DCI) and even Fixed Deposit (FD). 

It is just a simple concept for the investment. How does it work for your daily life and early retirement plan.  



Is his stomach looks like your wallet now?



  



You are saving money or feeding the monster of Inflation?



Are you ready to fight with Inflation ?

*Next post: What types of investors you wanna be? Winner or losser ? What method can you applied in investment ? Just stay tuned...

It starts ...

I'm not use to write diary before. Because I dont hav this kind of habbit. Unless I was forced by secondary school teachers due to the weekly homework, or went into 1 n half month PLKN in year 2010, July.

One day, however, I found that my "memory space" is getting full n I cant really memorize or recall back what I hav done before. Ehlo, dont get me wrong, Im not a dementia patient or amnesiac, I just want to record, write and dwell on the past`, we called it "History".


Therefore, I started to create a blog at blogspot.com. It almost killed me when asking me about the "blog-title". It is very difficult like asking me to name my children. Firstly, I named it " Lim Investment Mind (LIM)", but I was afraid that people will treat it like somewhere promoting, sharing or even advising people investment ideas; After that, I put " The way to success", oh shit man! This is not kind of motivation blog, and at the moment im not a successful person, and whatif I cant achieve my goal in the future (touchwood) ? Ughh, it is really killing me. So...any idea for this blog's name ? Do feel free to PM me or email to my mailbox. hehe.

Finally, I named it as "I-blogger", the word " I " got many meanings. But for me, myself, it is just a place where I could write down my life, share something regarding the market, investment, the country, the world and bla bla bla...

Opps! I havnt introduced myself yet. My name is Elson, and currently working at OSK Investment Bank Bhd as a dealer representative. I do enjoy the job, my life, the moment spent with family, Yily, friends, colleagues, and customers.

Life is great, while you have found something you are really interested in. Guys, have you found it?