Posts

Showing posts from August, 2008

Market Down – How to Survive

Image
Most of the investor knows the theory, “buy low, sell high.”   However, with the fear of an economic slowdown the market now moving up and down – volatility is back. The rapid downward movement makes it difficult for investors to fulfill the buy low sell high strategy. If you are not selling high, you are not freeing up cash to invest in the bargains that are becoming available in generally falling market.   However, there’s always active cash machine – dividend paying stocks become popular and powerful in down market. Those dividends get paid regardless of what direction stocks move. Less know, but important, is that dividends themselves can give you a tremendous rate of return, with no stock gains required. So even market stay flag or down for years, you can still get a decent return on your investment --- dividends. The true power and returns from dividends come from the rise over time as the companies behind those dividends grow and prosper.   In the down market, you can re

Investing is similar to taste of Strong Wine

Image
Many people like to ask, how much money should one invest into Stock Market is considered appropriate with good return? There’s no definite answer, to me, if one can afford to loss money in Stock Market and he can still enjoy the meal with good appetite, then it should be fine.   Most of people enjoy drinking, not only one bottle, but kind of few bottles in one short. I don’t know how people really enjoy with this kind of bottom up drinking, but for sure, if buying Share with this kind of behavior, your pocket is going to bottom up! (Chinese say Gang Pei , let the glass empty)  Actually, buying share is like tasting of X.O., little by little, with this slowness drinking, one can enjoy the process, taste it at least. Normally if drinking too much too fast, the only possibility is vomiting.   One should only invest with the money that intended to keep in Bank’s Fix Deposit account, say about 40% of net worth. Every month review the investment result before making any decision, i

The purpose of Investment

Image
Many people when ask why they invest… the first answer is to earn money. Yes, many of the advisor or instructor when given speech on investment, the answer is “Making Money”. Is that so simple? Few years ago, there’s an old man migrated to America , he felt life was boring there. As he didn’t know English, didn’t know how to drive, life was meaningless until he meat a man who told him to invest in Stock Market. Temple Pagoda... God never promise sky will always blue!    At the years of eighty, he start to invest part of his money, about 100 thousand in stock market. Investing in stock market has changed his life. First, he started to read news paper. He subscribed to 3 news paper and search the dictionary on any word which he didn’t understand. After 3 years, his English standard had improved a lot! Beside, he start to listen to TV news in order not to miss out any important event. This had improved his English literacy as well.  Quite strange, the hearing problem was being