Tuesday, September 13, 2016

The Super Investor Debate



The Super Investor Debate



Along the journey into the investment world, one would have experienced  winnings and losing from time to time. Unless you are one who only  trades once in your lifetime, then either you are a clear cut winner or loser. But of course most of us do not trade once in our lifetime, rather many times over the periods of years.

The question is do you make more money from your profitable trades or lose more money from your losing trades? Only the individual will know this to himself and no one else. After all, not many people are keen to tell or share to others how much they made from investment or the other way round.

Even a spouse might not want to tell his other half of his winnings from stock market because the wife might want to "impose her income tax" on his winnings. Ha ha, I am just joking although this is true for certain couples when it comes to ringgit and sen issue.

This brings me to the question of if you have been winning more than losing, can you consider yourself a Super Investor? What is the definition of a Super Investor? Is there a clear spelt out written statement that one must win this or that amount to be considered a Super Investor?

Clearly, I can't find a clear definition of it although numerous accord of this prestigious title has been given to so many world famous investors such as Warren Buffet (Check names again) being the top on the mind of most of us. We also have our own locals Super Investors too although it remains to be seen whether it was universally accepted by the majority or minority.

Recently too, a blogger posted about the debate of comparing Super Investors to another one and the lists keep going on. In the end, her views were that there should not be comparison to one another at all. I couldn't agree with her more. Everyone of us here is somehow a super investor in her own way one way or another. As long as one continues to make more  money than losing money, one is on the right track to increase his wealth faster than just keeping inside the bank.

But how many of us can make more winning trades than losing trades over the times? And it is not about winning trades. A few of the winning trades must be Big Winners such as rising more than 100% or at least a ringgit and above. Achieving a few Big Winners can make a very big difference to your winnings' margin.

Then also it is not about losing a few trades. The losing trades must also not be a massive one or else it will be very difficult to recover back your winnings ones.

To simplify this, one must make a few Big Winnings trades among those normal winnings trades and must also NOT LOSE at all any BIG losses in those few losing trades. If one can achieve this more often in the stock market, one is going to see his wealth increasing at a faster pace than he can imagine.

One way to monitor this is to record all those buying and selling details and keep them in a record to that one can see clearly whether one has been winning or losing in a big or small way.

By keeping records, it lets you see clearly how much you have been losing or winning and thus let you realised how much progress or (the other way round) you have been faring with your investment in the stock market. This also let you know if you have been more consistently right with your judgement/analysis/strategies you have applied in your approach.

Then you can safely say to yourself if you earn the title of Super Investor or Super Investor when it comes to losing, haha.


Looking for stable high dividend stocks

Stable companies that continue to pay regular good dividends that are on par or even better than banks' average fixed deposit of 4% are companies that will always be in vogue from time to time.

Several articles appeared through online by several bloggers and by print that appeared in The Edge Weekly and Focus Malaysia from time to time always catch the attention of many, especially conservative investors who are looking not so much for growth, but rather a stable consistent flow of dividends credited into their bank account. I have kept several shares of these companies for many years, a few are more than ten years old and it is always a joys when these money are credited in.

In the early days, the joys were through by post when you received them through cheques. I still remembered those days when I gleefully got it and write down my name and account number behind and have it banked in.

For someone like me who should be retiring comes February 2017, but thanks to the Revised Retirement Age to 60, I would be having the option to whether to continue or decide to retire anytime I wish to.

At my age, I am looking for even more such stocks to invest and hopefully to receive dividends more compared if I keep them in the banks. Of course I am also practising asset allocation too, meaning I would not be all my money into stocks, I still need to keep some in banks just in case stock market might go through another world major crisis.

Anyway, I am searching for more such stable stocks to be added into my Basket of Defensive Stocks from time to time. There are plenty, but I am just practising patience to buy them at appropriate time.

Keep in touch.



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