Articles
WHY should we invest?
In the past, economists advised against investing money in homes as they believed inflation would decrease their value over time. They recommended depositing money in a bank to earn interest to offset inflation. However, today, economists advise against depositing money in banks as the interest earned does not cover inflation. Though the numerical figures increase with time, the buying power decreases, resulting in negative growth in consumer power. To achieve real growth in consumer power, everyone needs investment, regardless of their wealth. Rich people aim to grow their wealth, while poorer people need money to meet their basic needs.
Regardless of one’s occupation or position, it is common for people to desire extra income to fulfill personal goals and aspirations. This desire for additional income is what is known as the Invisible Hand, a concept that originated from Classical Economics. By investing, individuals not only work towards their own financial goals, but also contribute to the development of their city as a financial center, ultimately benefiting society as a whole. Therefore, investing is not only beneficial for oneself and their family, but also has a positive impact on the wider community.
WHEN should we invest?
When a product has a low price and is stagnant, people are less likely to buy it even if it is cheap. However, as the price surges, people begin to flock to it, even if it becomes very expensive. The problem arises when investors have to decide whether to buy early when prices are low and wait for a long time, or to chase high-priced stocks with the potential for immediate profits. However, if you chase those high price products, there is quite a high risk as it may adjust suddenly to a great extent since it has been rising for a long time and potential growth is quite limited. So what should we do?
Investors who have friends working for “Big Shots” and have access to reliable insider news may have an advantage, but most do not have such connections. One strategy is to spend more time on chart analysis to track the movements of market Big Shots and determine whether they are buying or selling in bulk. This approach can help to uncover potential trends without relying on insider news or rumors.
Even experienced investors sometimes face challenges such as buying a product at the wrong time, resulting in a drop or sudden rise in price. These situations can be avoided by studying Wave Theory, Chart Patterns, Technical Indicators, and Candlesticks, which can help investors make more informed decisions and overcome these dilemmas.
In summary, investing requires careful consideration of risk and potential return. While there are no guarantees in the market, by studying market trends and taking advantage of available resources, investors can improve their chances of making informed decisions and achieving success.
WHICH products should we invest in?
Apart from Time Deposits in banks, there are three common investment options. Firstly, buying stocks in full payment; secondly, buying commodities such as currency, gold, silver, petroleum, or agricultural products by paying a partial amount or margin. Thirdly, purchasing valuables like gold bars, coins, or diamonds to keep in a safe box, suitable for pensioners or senior citizens who want to keep their assets for life and wait for the value to increase gradually.
The second option allows investors to use the leverage system and use only part of their capital to buy products worth 20 times greater in price value. Although it is flexible, the profit and loss are enlarged 20 times more, and the risk is also 20 times higher, making it unsuitable for beginners. This option is best for experienced corporate investors.
The first option, buying stocks, has several advantages, with over 2,800 listed companies in the New York Stock Exchange and 3,800 in NASDAQ. Choosing the right stock is not just about earning money, but it’s also a validation of one’s foresight. Moreover, investing in US stocks requires a broader eyesight than local stocks as everything under the sun affects the US stock market, and all world markets are impacted by US stocks, including currency, agricultural products, petroleum, and precious metals.
WHAT should be our attitude towards investment?
When it comes to investing, it’s important to have a realistic approach and not expect to become wealthy overnight. Instead, it’s best to treat investing as a part-time job that can help fulfill your daily life goals. A good strategy is to divide your capital into four portions: one for short-term, two for medium-term, and one for long-term investments. Short-term investments are designed to be held for weeks, while medium-term investments are held for months. Long-term investments should make up a smaller portion of your portfolio, as investing a large amount can increase your risk. Be prepared for short-term investments to become medium or long-term investments due to increased risk.
In Asia and Europe, it is common for people to invest in US stocks during their free time, without using their office hours. However, it’s important to avoid discussing investments too much in the workplace, as it could lead to misunderstandings or negative assumptions about your work performance. It’s best to limit investment discussions to one or two close friends. When placing an order for stocks, it’s also important to do so discreetly, as coworkers may assume any negative performance in your job is due to distractions caused by your investments. While investing in local stocks may require using office hours to place orders, investing in US stocks can be done during your free time to avoid workplace gossip. However, it’s important to remain vigilant, as gossip could still become an issue in the future.
WHERE is the best place to invest?
Daniel Yue, our Chief Mentor, has 40 years of experience in various aspects of the financial market and has been running a successful financial internship since 2006. His students come from universities located on 5 continents, and his academic background and practical teaching experience make him an excellent resource for investors. The team members at Stalfin are also globally diverse, coming from both the eastern and western hemispheres, allowing us to cater to the needs of a broad range of clients. Our electronic handouts and teaching videos are comprehensive and unique, and we often provide live lectures both locally and abroad.
When purchasing an electronic handout, clients automatically become members of the Stalfin Club. As a member, you will receive daily commentaries on the US stock market, along with the best stock suggestion of the week. We also provide notifications about our activities, including live lectures in Kazakhstan, Europe, or Hong Kong.
Investing in the financial market can be stressful and often induces feelings of nervousness or anxiety. At Stalfin, we recognize the importance of maintaining a clear mind to make the right decisions, and therefore we offer unique resources to help investors relax. In addition to his financial expertise, our Chief Mentor, Daniel Yue, is also a Music Therapist and pianist. He has created a CD of piano music with arrangements of Five Chinese ancient elements that can help investors release tension. This CD is not for sale and cannot be purchased in a store. However, members of the Stalfin Club are entitled to receive this unique CD as part of our commitment to taking care of our clients’ mental health.
