2015 is over, now we are in 2016. This is time to seriously
look at performance of your personal investment, such as
mutual fund, or individual stocks holdings, etc. Does your
fund beat index last year? Does it beat index over past many
years? How are you doing with your own stock investment
comparing to SP&500 index?
If the answer is “great”, well congratulations. You have
your own way of beating market and making big money already.
1.Investing is the Proven Method to Make Big Money
in the Stock Market
I know that I’m going to catch a lot of flak for saying
this, and that many people will misunderstand what I’m
saying. There are certainly other methods of investing or
trading, which made people rich. There are certainly many
under- performing value mutual funds, which give people
wrong impression that value investing is equivalent of low
performance with less risk.
However, I want to emphasize that in fact value investing is
investment style that can obtain high performance with less
risk. I want to stand by my above statement for the
In the early years of my investment career, I have studied
and tried all kinds of well known methods of famous
investors or traders, Short term trading, Momentum trading,
Technical Analysis, CANSLIM, growth stock long term buy and
hold, Random Walk theory, etc. I have been there and I have
done there. Evidenced by my past investment performance,
value investing is the only method that delivered gigantic
investment return consistently for me over past many years.
2.To give up the dream overnight.You know how it is, you’re sitting in a traffic jam at some unearthly hour of a particularly wet and miserable morning, on the way to the same office you have sat in for too long to remember, and you’re thinking – there must be a better way – life shouldn’t have to be like this.
Your mind starts to wander and you find yourself thinking back to that stock you bought only a week ago, and how it skyrocketed giving you enough profit to takes the kids to Disneyland in the summer, and you begin to consider if you couldn’t make a fulltime living at this trading game. The advantages are certainly tempting; no more pointless meetings with the manager, hours to suit, holidays whenever you feel like it, and with your home-office – no more traffic jams.
Heck, come to that you could even make home anywhere you want it to be! By the time the traffic starts moving again. you’re busily calculating how much cash you could make if all your trades went like that last one – you’re almost ready to write your notice letter there and then!