Saturday, 30 July 2016

Photos Taking vs Investing ( STE Photos sharing )

I like to take photos though I am not a professional photographer but what to do with Photos taking and investing ? Is there any similarity between these two ?

Patient !  Yes , both required patience to have good or better result. To snap a good photos , one need to be patient . 

Friday, 29 July 2016

About me .. STE

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Hi Everyone !  is me STE, I would like to start a blog to pen down and document my thoughts on stocks investing and also “talking to myself “ on some issues relating to investing ideas / world . I will try not to mention any particular stock in my blog post as it is very hard to do any “prediction or forecast “ of future or stock's movement and also this may attract unnecessary dispute / incident if anything goes wrong .. I will be using more graphic / chart / table / quotes to explain my thought and ideas as “ pictures worth more than thousand words “ ,, the most important things is …I don’t really good in explaining things in words.. haha .

Wednesday, 27 July 2016

Buying your first stock...

Image result for magnum 4dIf you are investing in any stocks market , you will have experienced on the stock you first purchased in your investing life . For me , it was a counter call “ Magnum Bhd “ ,a company who operate and manage 4-digit numbers forecast betting in Malaysia. ( yeee.. a sin stock !) . Yap , indeed ,it is a “sin “ stock with quite decent dividend .

There was a story on why am I investing in such counter as a start in my investing life. As you may notice from my post on “ About me “ , I came from a big family with 7 siblings and my father was a construction worker. We are poor and most of my siblings don’t even have chance to complete their primary school ( I am just the lucky one who have chance to complete my tertiary education ).

My father like to buy 4-D and he has won quite a big sum in early days ( around RM10K ) in 35 years ago .  It would have considered as huge sum of money at that time , but since then ..he lost all the money he won plus much more in subsequent years . Obviously , that was my primary intention for me to buy into this counter as it was giving good dividend and recession proof counter. I hope to gain back some money from what my father lost to them ( sounds funny right !).

Experts have identified many reasons which try to explain why people are addicted to gambling or buying 4D/TOTO …. reasons such as greedy / excitement / risk taking / social or peer influents / escapism and of course glamorous when they win BIG were cited among the factors causing people to gamble.

Our Mind …

“Neuroeconomics “ try to explain this in term of our “brain design “ and evolution . Neuroeconomics is a new born field – a hybrid of neuroscience , economic and psychology “ which studies peoples action or reaction when we need to make decision on matters related to economics like investing and choices .

This is one of the book in my early days of learning on the “Behavioral and Psychology “ of investing . The more we understand on how our inner brain react to our decision making in investing , the more we will avoid the “pitfalls or traps “ in investing world.

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Quote : “One of the themes of this book is that our brains often drive us to do things that make no logical sense, but make perfect emotional sense. That does not make us irrational, It make us Human
Our brain were originally designed to get more of whatever would improve our odd of “survival” and to avoid whatever would worsen the odds. Emotional circuits deep in our brains make us instinctively crave whatever feels like to be rewarding-  and shun whatever seems like to be risky “.
Our minds is much capable to form “ pattern “ and objects in our imagination instead of doing the complex calculation e.g. “probability “.

Now , close your eye and try to imagine the scene of “things “ you would like to buy if you strike a TOTO Big house , Rolex watch , holidays to exotic place , sumptuous food “ One can vividly imagine that and make us excited and the release of “ dopamine “ after unexpected reward i.e. “win lottery “ make us wiling to take more risk.
Again , close your eye and try to imagine the “probability or odds “ of striking TOTO … 1/ 13,983,816 .

Well , it just a bunch of figure and we can’t really imagine or calculate how “ difficult “ it is to strike the TOTO . Therefore , we will tend to think that striking TOTO or 4D is easy ( just 4 numbers ,,, forget the probability of 1/10,000 in striking 4D .

For the case of my father , he has the bias of “ over confident “ once he have the first strike in 4D … and think odds may be with him again … same for investing , one should avoid “over confident “ once we have some gains in particular stock , it might be due to “Luck “ and not our capability of identifying all the winner most of the time.

I shall try to explain more about “ behavioral gap and psychology impact “ in investing in my future blog post .. stay tuned…

How about you ? do you still remember which counter you bought as your first stock ?

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Quote : Investing is about probability :
"Investors want certainty, and we cannot give them certainty. We can give them high probability; we cannot give them certainty" ,,, by Charles William Hamilton