When Uncle8888 read this in the morning, he smiled!
That was more than one decade ago when he poked late local "Guru" whose life goal was to make 10,000 people millionaires through his investment training course! But, Uncle8888 still respected late "Guru" who had never ban or moderated him in his forum despites occasional poking - Chun bo?
Read? Made 10,000 People Millionaires???
Posts
CW,
ReplyDeleteMakes us, the 2 dots in the Tao symbol, less in negative light hor?
LOL!
Critical thinking is hard.
For eg, if someone "sells" you over a 10 year period, spreading your investment in dividend paying stocks has a low probability of losing money, pray tell WHY they only "flex" their investment returns over a 3.5 year period beating this and that?
No alarm bells ringing in your heads?
If we get to choose our best performing time frames, you and I can also show we can beat STI by a mile too! LOL!
Even that bei kambing newbie, who got an unrealised return of 20% for his 1st month in investing, can also "annualised" that performance and tell everyone he has just beaten Warren Buffett, Peter Lynch, Temasek, GIC!!!
Or yi or! I Tarzan or what?
See? My system works!
You want to learn my system?
Come attend my MasterClass!
Sign up fast! First 50 participants will get an early bird discount of 50%!!!
What are you waiting for?
This is true Secret to making passive income in Singapore to FI or FIRE!
DeleteIf you want $X in passive income; you come to the market with $33X of investing capital! So easy! Bom pi pi!
Hi Uncle8888,
ReplyDeleteDuring the lockdown & more WFH environment, had more chances to meet up with relatives & friends.
I was surprised at how many so-called financially successful & financially comfortable people (e.g. doctors, lawyers, business owners, directors, senior civil servants, etc) were still looking for fast gains in the financial markets.
While most were seasoned enough to ignore those stock & property "gurus", they still flocked to private bankers & RMs. And it seems that the flavour of choice for many years has been structured equity notes (essentially packaged selling of naked put options) gunning for 10%-30% returns on 2-6 months tenor and at $100K to $1M a pop.
The banks get 1%-2% commissions that they are happy to pay.
I asked them what happens if they get "put" the stocks (often overpriced volatile tech stocks that have crashed ... maybe temporarily) ... do their RMs or bankers put in place a system of selling covered call options to help them generate income while waiting for a chance to sell at a better price?
Nope. They're stuck with the shares on their own & most will hang on till "breakeven" or at least a bounce to cut at smaller loss. They will then psycho themselves that with the interest, their loss still small.
My own encounter with RM Read? Bank RM"
ReplyDeleteNo need to make any decision on the spot. Go and cool off or seek financially savvy friend or relative for second opinion.
Of course the banks need to take a cut, and in order to provide CAGR above 20%, they go with high beta stocks or some other securities.
ReplyDeleteYou'd be surprised at some of these HNWIs ... they can spend years & decades getting professional degrees, navigating career & companies, climbing the corporate ladder, growing their businesses, accumulating multiple-properties portfolio.
But when it comes to the "markets" ... they want $100K "interest" on $1M of "investment" within 2 months with principal paid back. And yes, most of the time that's what happens. But every once in a while the "investment" blows up in their faces.
The point is that they can easily replicate what the banks are doing on their own, if they bother to put in a few hours of homework. With the mature & liquid US options markets, they can use short expiry naked puts/covered calls on "safer" companies that can still generate high single digit or low double digit yields.
And even if forced to take delivery of those stocks in a down or bear market, it can still be managed to produce ongoing income & eventual profitable sale. Instead of the lottery win-or-lose approach by the private bankers.
Due to the bad reputation of the financial training industry, some trainers like to invent stuff to self-motivate and make themselves feel useful. One of them is help 10000 people become rich millionaires.
ReplyDeleteThink deeper. Trading/investing in secondary markets is a zero-sum game. When you make someone rich, you also have to make someone else poor.
Try to see things as they are. No need to make it moral to make one feel good and useful. You like it, you do it as long as no one else is harmed.
By the way, I'm grateful to that financial trainer Dennis Ng for his personal finance advice. It applies to everyone. Can't say the same for his investing/trading advice because many people simply are better off not touching financial markets.
Good advice on personal finance to earn, save and invest to build wealth is never same as investing/trading advice to make millions from the stock market with $XXX,XXX as capital and then FIRE!
ReplyDeleteHi temperament,
ReplyDeleteAlthough speculation in secondary markets is zero sum game, it has some social value. I don't say this as little lies to make myself feel good.
In the stock market, the liquidity generated by speculators make stocks attractive to investors and help make the stock market a good place for entrepreneurs to raise capital to create socially useful companies. In the commodities futures market, speculators help commercial hedgers transfer risk so that hedgers dare go ahead to produce more commodities for world consumption.
If a person makes good money from the markets, no need to show off as if he is a role model. It's after all a zero sum game.