Lesson of the day

When comes to investment and making money, everyone has different preferences. Some goes for high risk high return financial products, some choose to stay with low risk thing. I've been learning to diversify my portfolio in the past few months, but one thing I've learned from the lesson: be disclipline and go for it if you know this is what you want.

The market came all the way down in February 2010, it was the time I've missed in shorting futures, and since I've missed one opportunity, I thought, it's not too late to invest in other products. I've been thinking about buying Euro dollar; since the Europe Debt issue, the Euro has came all the way down. Of course, just like the 2008 financial crisis, no one knows what will happen to Europe or Euros, and no one will know when is their recovery. Apart from Euros, Singapore Dollars is one of favourites, giving the fact that I go Singapore every often nowadays. Apart from that, two of my target shares were Air Asia, my favourite "everyone can fly" budget airlines and CIMB, one of the blue chip banking share in Malaysia.

Imagined if I followed all my plans, today I've been making money. Time frame, just in 5 months time. In reality, I only bought Singapore dollars but not others. Did I really missed out the opportunity of making money? In a way, yes; but on the other hand, I think I've learned a good lessson.

These investments takes time to see the money grow. In a fast money world, like what I've been doing in palm oil futures and a virtual Hang Seng Index market. Yes, I could have made more money within a few days or a few hours. But bear in mind, easy money easy goes. One very good lesson in trading fast money market-- always know when to cut loss when market is against you and always know when to protect profit or realize profit when in the money.

Lesson of the day, It is very important to be DISCLIPINE in any kind of investments.