Personal Investing - By Ooi Kok Hwa
WE have been asked by many readers on ways to improve their investment skills. In fact, for all of us who invest, it is one of the essential skills that we need to acquire in our lifetime. Like it or not, we need to have it if we need to generate returns for our investment.
All investors want good returns from their investments. However, most of the times, instead of generating returns, retail investors are suffering from losses from their investments. We feel that one of the key differences between an intelligent investor versus a normal investor is that the intelligent investor will be aware that he may make mistakes in some of his investment decisions while a normal investor tend to overlook the fact that he will make wrong decisions no matter how good he thinks he is.
Despite extensive research on certain listed companies, due to some unforeseen changes in certain fundamental factors, even good value companies may suffer losses. Under such circumstances, an intelligent investor will admit that he had made a mistake in his investment decision and will cut losses fast.
However, the problem with most investors is that they refuse to face their mistakes; some are not willing to cut their losses even though they are aware of their mistakes.
Hence, rule number one in investing is that we must be fully aware that regardless of whether you are an investment guru or an average investor, everyone will make mistake in his investment decisions. That’s why some experts say: “When somebody mentions that they have more experience than you, they mean that they have incurred more losses than you in stock market.” The key is to learn from our mistakes.
In order to avoid incurring losses in stock market, we need to develop our own investing system that suit our needs, skills, knowledge and risk tolerance level. The investing system can be adopted from the fundamental analysis, technical analysis or combination of both. If we ask some remisiers, they will most likely tell you that they need two to three years to develop their own investing system that can help them to generate returns from stock market.
One of the fastest ways to acquire investing knowledge is through reading books relating to investment. There are many good investment books in the market. However, since every investor has different preferences, the best way is to visit bookstores and look for investment books that he or she can understand and can offer the skills needed. For beginners, always start with some basic investment books that explain well on key investment concepts.
Here are some good investment book titles for consideration: The Intelligent Investors (by Benjamin Graham), The Essays of Warren Buffett: Lessons for Corporate America (Warren Buffett and Lawrence A. Cunningham) and Rule #1 (Phil Town). For advanced investors, you may consider Security Analysis (by Benjamin Graham and David Dodd), which is still one of the best investment books in the world.
Apart from reading books, investors need to read more business news in newspapers and magazines to keep themselves updated on the latest happenings. In addition, many newspapers, magazines and websites also publish good articles for the purpose of educating general public on investment. For example, investors can get good investment knowledge from website like www.min.com.my, by Securities Industry Development Corp.
Reading analysts’ research reports will enhance our understanding on some issues and factors in valuation as well as comments on some corporate strategies and developments. This knowledge is crucial in helping us making better investment decisions. Besides, for those serious fundamental investors, they may consider buying books like Stock Performance Guide (by Dynaquest Sdn Bhd) and Shares (Pioneers & Leaders (Publishers) Pte Ltd), which will provide all the essential investment information like companies’ background and some key critical investment information.
Another way to acquire investing knowledge is through attending investment training classes. There are many types of investment training classes, for example, classes on fundamental investment, technical analysis, currency trading or option trading. Given that a lot of these classes are quite expensive, we need to check whether investment training suits our needs. We believe some of those classes may be able to help investors generating returns, however, they require higher level of discipline and commitment.
Before we start investing with “real” money, one of the ways to gain experience and at the same time test out our skills is by building up a “virtual” portfolio and investing using “virtual” money. We can always try out our investment skills through playing a simulated investment game and monitor the investment returns before putting the real money into the stock market. Besides, we should also start young. If we acquire these investment skills at younger age, the losses that we may incur will be much lower than trying them when we are getting nearer to our retirement age.
● Ooi Kok Hwa is an investment adviser and managing partner of MRR Consulting
Wednesday, February 10, 2010
How to Improve Your Property Investment Buying Skills
Investing in real estate is your first step towards a productive life. So if you want to rack up large sums of money without having to face big risks, the first thing you should do is to go on a property investment
buying spree.
Despite the current economic crisis, real estate investing has never lost its appeal among many people. In fact, the number of real estate investors continues to grow and it looks like this trend is likely to last for the next few years. However, because more and more people are seeking to invest in real estate, you should learn how to outsmart the competition for you to succeed in this business.
One way to boost your knowledge of real estate investing is to do some research. As we all know, education is important in our lives because it teaches people new things and boosts their skills. So if you want to become a great real estate investor, you shouldn’t stop educating yourself just because you have managed to land a great deal on your first try.
A good strategy to improve your knowledge of property investment buying is to join the local real estate investing association or club. Setting the competition aside, befriending your fellow real estate investor can do a lot for your career. By surrounding yourself with individuals who share the same interests as yours, you will be able to obtain valuable information that you wouldn’t learn in books.
If you are truly interested in investing in real estate, then you should know the latest happenings in the housing business. Browse newspaper or surf the Internet to keep yourself informed of the latest market trends. This will help you make better decisions when buying investment properties.
The World Wide Web is also a treasure trove of ideas and information about real estate investing. There are numerous websites that offer valuable tips about buying investment properties. Many real estate gurus are also sharing their knowledge online with those who are just starting out in the business. So if you want to become better at what you do, just launch a browser and explore the Internet.
Meanwhile, there is a website the offers quality real estate education for those who want to learn more about property investment buying. REIWired.com is home to dozens of nifty articles, sound files, and videos that can bring out the great investor in you. So if you want to feed your brain with quality real estate content, visit REIWired.com.
Retrieved from "http://www.articlesbase.com/business-articles/how-to-improve-your-property-investment-buying-skills-1412870.html"
buying spree.
Despite the current economic crisis, real estate investing has never lost its appeal among many people. In fact, the number of real estate investors continues to grow and it looks like this trend is likely to last for the next few years. However, because more and more people are seeking to invest in real estate, you should learn how to outsmart the competition for you to succeed in this business.
One way to boost your knowledge of real estate investing is to do some research. As we all know, education is important in our lives because it teaches people new things and boosts their skills. So if you want to become a great real estate investor, you shouldn’t stop educating yourself just because you have managed to land a great deal on your first try.
A good strategy to improve your knowledge of property investment buying is to join the local real estate investing association or club. Setting the competition aside, befriending your fellow real estate investor can do a lot for your career. By surrounding yourself with individuals who share the same interests as yours, you will be able to obtain valuable information that you wouldn’t learn in books.
If you are truly interested in investing in real estate, then you should know the latest happenings in the housing business. Browse newspaper or surf the Internet to keep yourself informed of the latest market trends. This will help you make better decisions when buying investment properties.
The World Wide Web is also a treasure trove of ideas and information about real estate investing. There are numerous websites that offer valuable tips about buying investment properties. Many real estate gurus are also sharing their knowledge online with those who are just starting out in the business. So if you want to become better at what you do, just launch a browser and explore the Internet.
Meanwhile, there is a website the offers quality real estate education for those who want to learn more about property investment buying. REIWired.com is home to dozens of nifty articles, sound files, and videos that can bring out the great investor in you. So if you want to feed your brain with quality real estate content, visit REIWired.com.
Retrieved from "http://www.articlesbase.com/business-articles/how-to-improve-your-property-investment-buying-skills-1412870.html"
Tuesday, February 9, 2010
Different Colors Describe Happiness vs. Depression
By Stephanie Pappas, LiveScience Contributor
Color Wheel for mood:http://i.livescience.com/images/mood-color-wheel-100208-02.jpg
People tend to pick different colors to describe different moods, according to research published Feb. 8, 2010 in the journal BMC Medical Research Methodology.
Are you in a gray mood today? How about a blue funk? Maybe you're seeing red, because you're green with jealousy. The colors we use to describe emotions may be more useful than you think, according to new research.
The study found that people with depression or anxiety were more likely to associate their mood with the color gray, while happier people preferred yellow. The results, which are detailed today in the journal BMC Medical Research Methodology, could help doctors gauge the moods of children and other patients who have trouble communicating verbally.
"This is a way of measuring anxiety and depression which gets away from the use of language," study co-author and gastroenterologist Peter Whorwell of University Hospital South Manchester told LiveScience. "What is very interesting is that this might actually be a better way of capturing the patient's mood than questions."
Colors are often used as metaphors for moods, but no one had systematically researched color associations, Whorwell said. To investigate, he and his colleagues picked eight colors — red, orange, green, purple, blue, yellow, pink and brown — and split each into four shades. They then added white, black and four shades of gray for a total of 38 options. After meeting with focus groups, the researchers decided to display the colors in the form of a wheel.
Next, they recruited 105 healthy adults, 110 anxious adults and 108 depressed adults and mailed them printouts of the color wheel. Each person was asked to pick their favorite color, as well as the color they were most "drawn to." Finally, they were asked to pick a color that described their day-to-day mood over the last several months. Another group of 204 healthy volunteers classified each color as positive, negative or neutral.
Whether depressed, anxious or healthy, people liked blue and yellow. Blue 28 on the color wheel was the most popular favorite color among healthy people, while Blue 27 (which is a little darker than 28) got first place among people with anxiety and depression. Meanwhile, Yellow 14 was picked as the color most likely to catch the eye.
But when it came to mood, the groups diverged. Only 39 percent of healthy people associated their mood with a color at all. Of those who did, Yellow 14 was the most popular choice, with about 20 percent of the votes. Meanwhile, about 30 percent of people with anxiety picked a shade of gray, as did more than half of depressed volunteers. In comparison, healthy volunteers described their mood with a shade of gray only about 10 percent of the time.
The researchers also found that when assigning a mood to colors, saturation matters.
"A light blue is not associated with a poor mood, but a dark blue is," Whorwell said. "The shade of color is more important than the color itself."
Whorwell is now testing the wheel on patients with irritable bowel syndrome. He's hoping that color choices can reveal patients' attitudes and predict how well they will respond to treatments like hypnosis. Because people are embarrassed by gastroenterogical symptoms, Whorewell said, non-verbal methods of getting information are sometimes preferable to conversation. And, he said, with additional research, the wheel could be used in medical fields from pediatrics to surgery.
"You've got an instrument now," Whorwell said. "Now people have to play with it and find out the applications."
* What Color Fits Your Mood? http://www.livescience.com/php/multimedia/imagedisplay/img_display.php?s=health&c=news&l=on&pic=mood-color-wheel-100208-02.jpg&cap=People+tend+to+pick+different+colors+to%0D+describe+different+moods%2C+according+to+research+published+Feb.+8%2C+2010+in%0D+the+journal+BMC+Medical+Research+Methodology.&title=
* 7 Thoughts That Are Bad for You: http://www.livescience.com/health/090911-7-bad-thoughts.html
* Top 5 Keys to Happiness: http://www.livescience.com/health/080822-top5-keys-happiness.html
Color Wheel for mood:http://i.livescience.com/images/mood-color-wheel-100208-02.jpg
People tend to pick different colors to describe different moods, according to research published Feb. 8, 2010 in the journal BMC Medical Research Methodology.
Are you in a gray mood today? How about a blue funk? Maybe you're seeing red, because you're green with jealousy. The colors we use to describe emotions may be more useful than you think, according to new research.
The study found that people with depression or anxiety were more likely to associate their mood with the color gray, while happier people preferred yellow. The results, which are detailed today in the journal BMC Medical Research Methodology, could help doctors gauge the moods of children and other patients who have trouble communicating verbally.
"This is a way of measuring anxiety and depression which gets away from the use of language," study co-author and gastroenterologist Peter Whorwell of University Hospital South Manchester told LiveScience. "What is very interesting is that this might actually be a better way of capturing the patient's mood than questions."
Colors are often used as metaphors for moods, but no one had systematically researched color associations, Whorwell said. To investigate, he and his colleagues picked eight colors — red, orange, green, purple, blue, yellow, pink and brown — and split each into four shades. They then added white, black and four shades of gray for a total of 38 options. After meeting with focus groups, the researchers decided to display the colors in the form of a wheel.
Next, they recruited 105 healthy adults, 110 anxious adults and 108 depressed adults and mailed them printouts of the color wheel. Each person was asked to pick their favorite color, as well as the color they were most "drawn to." Finally, they were asked to pick a color that described their day-to-day mood over the last several months. Another group of 204 healthy volunteers classified each color as positive, negative or neutral.
Whether depressed, anxious or healthy, people liked blue and yellow. Blue 28 on the color wheel was the most popular favorite color among healthy people, while Blue 27 (which is a little darker than 28) got first place among people with anxiety and depression. Meanwhile, Yellow 14 was picked as the color most likely to catch the eye.
But when it came to mood, the groups diverged. Only 39 percent of healthy people associated their mood with a color at all. Of those who did, Yellow 14 was the most popular choice, with about 20 percent of the votes. Meanwhile, about 30 percent of people with anxiety picked a shade of gray, as did more than half of depressed volunteers. In comparison, healthy volunteers described their mood with a shade of gray only about 10 percent of the time.
The researchers also found that when assigning a mood to colors, saturation matters.
"A light blue is not associated with a poor mood, but a dark blue is," Whorwell said. "The shade of color is more important than the color itself."
Whorwell is now testing the wheel on patients with irritable bowel syndrome. He's hoping that color choices can reveal patients' attitudes and predict how well they will respond to treatments like hypnosis. Because people are embarrassed by gastroenterogical symptoms, Whorewell said, non-verbal methods of getting information are sometimes preferable to conversation. And, he said, with additional research, the wheel could be used in medical fields from pediatrics to surgery.
"You've got an instrument now," Whorwell said. "Now people have to play with it and find out the applications."
* What Color Fits Your Mood? http://www.livescience.com/php/multimedia/imagedisplay/img_display.php?s=health&c=news&l=on&pic=mood-color-wheel-100208-02.jpg&cap=People+tend+to+pick+different+colors+to%0D+describe+different+moods%2C+according+to+research+published+Feb.+8%2C+2010+in%0D+the+journal+BMC+Medical+Research+Methodology.&title=
* 7 Thoughts That Are Bad for You: http://www.livescience.com/health/090911-7-bad-thoughts.html
* Top 5 Keys to Happiness: http://www.livescience.com/health/080822-top5-keys-happiness.html
Subscribe to:
Posts (Atom)