WHY should we invest?

In the last century, economists advised people not to put money into their homes, it would decrease in value as time goes by because of inflation, even the numerical figures stay the same but buying power would decrease. Therefore, it is better to put your money in a bank to earn some interest in order to cover inflation. Nowadays, economists would advise people not to put money in a bank, even if some interest can be earned but still cannot cover inflation. The numerical figures are really larger as interest is added gradually, but buying power is lesser as time goes by. Superficially, assets are increased but practically buying power is decreased resulting in negative growth in consumer power. In this era, everyone needs investment in order to have real growth in consumer power, no matter how rich or poor people are. Rich people of course want their wealth to grow more and more; poorer people are in need of money more than the rich. Everyone has their own occupation, but it is not enough no matter how high or low the position, everyone wants to have extra income to fulfill their wishes. This is what we call an Invisible Hand, it comes from Classical Economy. So, when you are investing, you are not only working for the benefit of yourself and your family, but also developing your city as a financial center and indirectly working for the whole society itself.

WHEN should we invest?

When a product has a low price and stagnant status, people would not like to buy it even if it is very cheap. But, as the price surges up, people would flock together to buy it even if it is very expensive. There comes a problem, if you buy earlier with a low price, you have to wait for a long, long time and just watch other people earn money by buying high priced stocks which can make profit promptly, and you will lose a lot of opportunities. 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? If you have a friend working for a Big Shot and can have reliable insider news, congratulations! But most of us do not have such a chance. If you can spend more time on chart analysis, you can track and trace the movements of market Big Shots to discover whether they are collecting (bulk buying) or distributing (bulk selling); therefore, there is no need to worry about the effects of insider news or smoke news. Meanwhile some people will also complain to themselves after they have bought the product; perhaps the price dropped or price rose at once. These cases do not only happen to beginners, even experienced investors sometimes face this issue. How can these situations be avoided? Not by luck or by chance, we should have a deep study of Wave Theory, Chart Patterns, Technical Indicators and Candle Sticks so as to overcome these dilemmas.

WHICH products should we invest in?

Basically, there are three common venues of investment besides Time Deposits in a bank. Firstly, buying stocks in full payment; secondly buying products in the form of commodities where you only need to pay partial payment such as currency, gold, silver, petroleum or agricultural products. Thirdly, buy some valuables like gold bars, gold coins or ornaments or even diamonds and keep them in a safe box. The third method should be for pensioners or senior citizens who want to keep their assets for life and wait for the value to increase gradually. The second requires you to pay part of the payment or what we usually call a “margin”.  It is quite interesting that by using the leverage system, investors can use only part of the capital to buy products 20 times greater in price value. Therefore, for a product worth $100, you only need to pay $5 for trading and the profit and loss is the same as that of $100. It is very flexible, but both the profit and loss are enlarged 20 times more, and risk is also increased 20 times more which is surely not suitable for beginners. However, they are for corporate investors or people who have had abundant experience and have gone through various struggles already. The advantages of the first choice (stocks) is that there are 2,800 listed companies in the New York Stock Exchange and 3,300 in NASDAQ, if you can choose the right stock you will be very happy not just earning money: it is a confirmation of your eyesight. Meanwhile, investing in US stocks has a broader eyesight than local stocks. Everything under the sun has an effect on the US stock market, and all world markets are affected by US stocks, whether it is currency, agricultural products, petroleum or precious metals.

WHAT should be our attitude towards investment?

The attitude towards investment should not be daydreaming about becoming rich in a single evening, instead it is better to treat it as a part time job which can fulfill your wishes of daily life. The most ideal method is to divide your capital into four portions, one for short term, two for medium term and one for long term. Short term just aims at weeks, medium term for months. Long term capital investments should be less; if you invest a large amount there is increased concern. Be prepared for short term investments to become medium or long term, with increased risk.  For the long term, just pay a small amount and keep it for 10 years and compare it with your medium term and short term investments and you surely will find something special. 

In Asia and Europe, people invest in US stocks and they do not need to use their office hours to do so. Unless you work in an investment firm, do not talk too much about investment in your work place, just one or two intimate friends are enough. Especially when you place your order, try not to let other people watch that moment, or else when you have any dissatisfactory performance in your job, they will link it to your investment and blame you because you might be distracted, no matter what the actual case is. If you invest in your local stock, you will always need to use office hours to place an order, but US stocks will be free to use after office hours enabling you to avoid gossip. Be wary; even if gossip had not been an issue in the past, it might occur in the future.

WHERE is the best place to invest?

Chief Mentor, Daniel Yue has 40 years’ experience in various aspects of the financial market, he has been running a financial internship since 2006 and his students are from universities spread over 5 continents. His academic background and practical experience of teaching and live market struggles should be a great help to investors. Team members of Stalwart Finance are also quite global and from the eastern and western hemisphere, so they know your needs. Our electronic handouts and teaching videos are unique and comprehensive and often have live lectures both locally and abroad.

Each Electronic Handout is accompanied with a teaching video, after purchasing, clients will automatically become members of the Stalwart Finance Club, and are  entitled to receive daily commentaries on the US stock market with the best stock suggestion of the week. Members also can receive notifications about our activities including live lectures in Kazakhstan, Europe or Hong Kong. 

The financial market has enormous pressure and a tendency to make people nervous or anxious. To release this tension you should have a clear mind in order to make the right decisions. The Chief Mentor of the internship Daniel Yue is also a Music Therapist and pianist; he has issued a CD of piano music with arrangements of Five Chinese ancient elements to help investors relax. This CD is not for sale, it cannot be bought by money, you cannot buy it in a store, but members of the Stalwart Club are entitled to obtain this unique CD. We are the very few finance companies that can provide relief for tension. We take care of investors’ mental health.