Investment Style

On June 16, 2010, In Action, By Ukey Hoo

The correction over the past month or so might have come to an end, in the midst of World Cup 2010, a historically period of low trading volume. In taking stock of your finances over the past month, has your net worth fallen in tandem with the market, or had it increased? That’s a tell tale sign of whether you are suited for your current investment style.

Over the past month, I had been fortunate to enter into 2 positions while the price was still low. Over the past month, I’ve a close friend who had traded stocks in the United States and made a significant amount of money. I’ve also friends who had lost money.

Each successful investor has his own specialty, and preferred vehicles for investment. Not everybody is suited for trading, and not everybody is suited for value investment.

While investment styles are widely varied, they are divided into 2 basic camps. Long term investment and short term investment. Long term investors generally look at the current pricing, and if its fundamentally attractive to make the purchase, they will consider the purchase. These investors generally have lower risk tolerance, and are adverse to short term fluctuations. For example, I would only buy a market if it’s fundamentally cheap, and the downside potential is limited, while the upside potential is high, which will generally depend on market cycles. I will tend to ignore market fluctuations, or even losses at the onset of investment, unless it breaks my stop loss limit of course.

Short term investors are generally traders, and would tend to ride on the current momentum. During the last month or so, for example, while the market was undergoing a correction, traders have already opened short positions, and maintained them through the worst of the correction, and closed them once its past their comfort zone. With an attempted rally in place from yesterday’s actions, these same people would probably have opened long positions in the market, and will be monitoring for the correct time to close their positions over the next week or so. Short term investors generally are more risk tolerant, and view market fluctuations as a number game only. Emotions seldom come into play to adversely influence their decision powers. They are perfectly willing to open and close a position within a day, and are comfortable having many losses with tight stop loss limits, so that they can make a killing over a few huge gains. They seldom have a single position at any one time, but would take up multiple positions to spread the risk.

Of course, after your style comes the instruments you are interested in, as each instrument interacts with other instruments in different ways, and that’s another topic altogether!

Hope you can find your investment style soon!

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Negotiations

On April 10, 2010, In Action, By Ukey Hoo

Negotiation is a part of life.  Not everybody understands this, but we do negotiations everyday!  When we negotiate with our loved ones on what to eat tonight, with our colleagues on who’s to do a particular piece of assignment, when we negotiate with our child whether he can skip class for the day, even with ourselves on what we should wear today.

We negotiate when we want a date, where and when we will go for holidays, what we are going to do during the next holidays, and never give a thought to them.

And when we go to what we call the real negotiation, for a new house, for a new car, for a computer, for a new business deal, to ask for a raise, thats when we realize that we are negotiating and suddenly freeze up.  Why’s that?  Since we negotiate for almost everything else with no though given to it, why do we freeze up during negotiation meeting?

Harv’s blog at http://www.harveker.com/2010/04/a-closed-mouth-never-gets-fed/ discusses about this, and ofers some solutions to it.  So far, I’ve attended his course Guerilla Business Intensive twice, and both times, the negotiation skills he taught are the most important points I took back, which is why I wrote this post.  There’s no need to be afraid of negotiating so long as the outcome desired is a win for both parties.  If one side is to lose, why bother to negotiate in the first place?  So when you get to the negotiation table, just be yourself, and look for a win-win for both parties!

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Passive Income

On April 9, 2010, In Action, By Ukey Hoo

Creating passive income seems to be the way to wealth. Everybody who’s in the process of seeking wealth is looking to build passive income. But is passive income real? What is passive income? Generally, people’s impression of passive income is money that will come in regularly without you having to put in any efforts or work into, as opposed to active income.

If you currently have any form of passive income, however, you will know that it is not possible to get constant or even increasing income without putting in effort, albeit minimal as compared to active income.

Let me give an example:- the easiest passive income stream to be obtained is probably fixed deposit. Anyone can just open a fixed deposit account in his country, and get interest on a monthly basis. But what happens at the end of the term? Interests rates for various terms differs from each other, and depending on market conditions, getting the best deal would be obtained from different terms. If rates are set for an increase, for example, the shortest term would be best applicable. If its set to fall, the longer the term, the better. So if you set renewal options as auto-renewal, you would miss the best possible deal for you, and the result may be a fall in passive income.

Obviously, the more variables, the more work has to be involved. If you hold your fixed deposits in different countries, not only do you have to check the interest rates, you would also need to check the foreign exchange rates, and move the money according to the market conditions.

This report focuses on the various passive income vehicles that should be monitored currently, and some are ready to be purchased into, while others are requiring more signals. 

In summary, don’t mistake passive income to be stagnant and constant.  To make it consistent and constant, or to increase it, additional efforts need to be put into the investment!  Complacency will cause loss of money!

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Leverage – one of the keys to success

On March 28, 2010, In Action, By Ukey Hoo

Leverage is something you will always need to achieve success, be it in your career, your small business, your B business or your investment (yes, all 4 quadrants of the cash-flow quadrant).

I’m especially interested in the use of it in investment, as people generally do not use the term leverage heavily in investment, with the exception of using margin for their trading.  My definition of investment, however, is something that you hold on to for the long term, so margin is not a particularly useful tool to me personally.

The leverage I’m talking about here is the leverage of your mind, the leverage of your team, and the leverage of other people’s money.  Let me elaborate further.

Knowledge and information is the most important here, and that is why the leverage of your mind is so important.  It’s only with specialized knowledge and skills that you can be a successful investor in the long run, and it does not matter which arena you are in.  The person with the correct skills/talents/temperament set who’s equipped with the most relevant and current information will be the one who makes the most money in the long run.  As I had mentioned in the previous post, I’m in the midst of preparing the information I am using to further my investment needs, and this will be in the form of a report.  That’s where the money will be made.

T. Harv Eker has just posted his thoughts on his blog as well, and you can see it from here.

Your team is another important aspect of leverage, and its something I use in my real estate investment in the US, as I am a foreigner who live in another country.  I have to depend on their expertise to get the investments, the correct market report, the correct market, the right real estate, the right tenants, and suitable maintenance for the job to be done.  But basically, once your team is set up there is really limited things for you to do, except to wait for the money to come in.  That’s the power of leverage of your team.

Leverage of other people’s money is an equally important tool, and it is not limited to your banker’s money.  No matter how rich you are, there are always time to depends on friends and family, or other people who know and trusts you for funding of an investment, whether your purpose is purely to help them invest or for your own gains.  For example, if you need to bank financing for your investment property, there is always a portion where you need to finance from your own resources.  This portion can either come from your own pocket, or from other people’s.  hence, this is the third and final tool i am discussing for this post.

In summary, when you invest, you have to leverage to make the most money with the least effort.  While you will never get something for nothing, there is nothing that states that you need to do everything yourself to achieve results.  Similarly, while you need money to make money, no one said it had to be your money in the first place.  So take heart, and leverage yourself to success!

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Process of Manifestation

On March 26, 2010, In Action, By Ukey Hoo

The process of manifestation, as I learnt from T. Harv Eker comes in the following form:-

Thought -> Feelings -> Action -> Result.

In the previous post, I mentioned that one of the ways to make use of periods of low energy is to reflect on yourself.  And this will help push yourself out of the period.  The outcome of this reflection will be determined by your own inner thoughts and feelings, and whatever the outcome is, it is time to give action to the outcome.  And not just action, but massive action.

This post came from my own personal reflection, and the verdict of which is that I will provide readers with the investment vehicles I’m using, and am contemplating to use based on current economic situations.  As you can find out from my free manual “Thrive in Your Job”, this is in line with the method I use to make 53% annual returns for the past 5 years.

So its time for me to give massive action to the plan I have for myself.  In fact, I already have the name in mind “Buy Low Investments for the first half of 2010″.  Have you started giving manifestation to your own thoughts and feelings as well?

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Anthony Robbins “Date with Destiny 2010″

On March 23, 2010, In Action, By Ukey Hoo

Date with Destiny 2010

Date with Destiny® 2010, Tony Robbins’ Signature Program, will be held in Bali, Indonesia in Apr 2010.

Tony Robbins, an amazing speaker who had helped millions of people across the world change their life will be coming to Asia to launch his flagship program, Date with Destiny®.

His ability to generate high energy among participants and his specially designed course allows you to have a life-changing experience to find out and create your destiny in life, complete with your own mission and values, to embody your destiny at the deepest level within you.  At the same time, he shows you how to create lasting bonds with your loved ones at a deeper level than ever before.

To find out more about his program, click on Date with Destiny® now!

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The Secret to Get Rich in Your Job

On March 22, 2010, In Action, By Ukey Hoo

Getting rich is hard work, at least at the start.  Once you’ve gotten a working system, however, things become simple, even boring.  The thing is, you can get rich in whatever arena you are in.  What’s needed is an understanding of how things work, especially in the area of finance.

The reason business owners can get rich is because their income earning ability has no limits, as business owners are experts in using other people’s time, resources and money.  When you are in a job, however, there is only one way to to increase the limit on your income, and that is to be an expert in investing, and start earning passive income to replace your working income.

So the question is, “how can a person with a job start getting rich?”

I’m glad you asked.

This manual shows you the way I have used to move myself from a penniless engineer in my first job after graduation, to my 1.5 years of living on my passive income made since my first forage into the investment world 5 years ago.

Its not about the rich getting richer , but about an average wage earner who made his money from pure investment, and still manage to become financially secure.  Whats more, the manual is totally FREE, so click on the link NOW to find out how to get the manual, totally FREE.

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