I used to work in a bank. While I loved my job and the people I was working with, I figured that the compensation would not help achieve my long-term goals in life. I set higher and loftier goals than most. When I was a kid, I was already envisioning of grander things. I came across this saying that have stricken me for many years now that "If you aim for the moon, you might hit an eagle, but if you aim for an eagle, you might hit the rock." I believe in this like a biblical truth.
At the age of 42, I realized that everything I have done so far comes nowhere close to hitting the eagle. The reason is because I have been aiming for the eagle and not the moon all my life. There I was comfortably sitting in my desk doing office works, receiving my company-paid salary every 12th and 28th of the month. While I was earning good by any standard, the salary that I was paid was just sufficient to pay for every expense of a family of three including all those little luxuries life has to offer.
I reckoned that if I have to realize my lifetime goals, I need to do something drastic and different; something that will leapfrog my earning capacity from being a fixed-income, salaried employee to a self-employed man earning a variable income that has the sky as the limit. No, in fact, the moon is the limit.
I was introduced into stock market investing more than two years ago when a friend convinced me to get my money out of my savings account and into stocks. The logic was simple. Savings account earns you 0.5% annually and the fixed interest is just enough to buy one scoop of low-grade ice cream. On the other hand, the Bank earns 10%-12% on your money. While you work hard for the money, the money does not work hard for you. Reading Robert Kiyosake's book, "Rich Dad, Poor Dad" hits the nail for me. So one day, I withdrew all my money from my savings account and opened a securities account. I did not regret my decision. My average ROI for two years was 24% way, way above the 0.5% that my savings account provided me before! I thought to myself that I should have done this ever since landing on my first paycheck.
The performance of my stock investment was encouraging even when my knowledge about stock investing is very limited. I only have one guiding principle which comes from Warren Buffet, the sage of Omaha, "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." Simply put, this means buy stocks when everybody is selling and sell stocks when everybody is buying.
When the Bank that I was working for offered an early retirement program, I applied for it. The timing was perfect as if made in heaven. Three years before, I was already planning to go full time into stock investing but the money that I had then was not enough to do it full time. In 2010, I was already feeling restless in my job. While I was still working as much as the first time, the enthusiasm and the excitement were no longer there. The fire in me was dying out. When I heard of the early retirement program, I immediately applied for it. From then on, there was no looking back.
I am now more than one month into full-time stock trading and investing. I am finally out of the pond and swimming in an ocean of possibilities. I either sink, swim or get swallowed by the sharks. So far, so good. I am learning new concepts, new ideas, new techniques. Every day, I am excited. The stocks I am following are going down three weeks in a row now. Good news for me. It is time to be greedy when others are fearful.
At the age of 42, I realized that everything I have done so far comes nowhere close to hitting the eagle. The reason is because I have been aiming for the eagle and not the moon all my life. There I was comfortably sitting in my desk doing office works, receiving my company-paid salary every 12th and 28th of the month. While I was earning good by any standard, the salary that I was paid was just sufficient to pay for every expense of a family of three including all those little luxuries life has to offer.
I reckoned that if I have to realize my lifetime goals, I need to do something drastic and different; something that will leapfrog my earning capacity from being a fixed-income, salaried employee to a self-employed man earning a variable income that has the sky as the limit. No, in fact, the moon is the limit.
I was introduced into stock market investing more than two years ago when a friend convinced me to get my money out of my savings account and into stocks. The logic was simple. Savings account earns you 0.5% annually and the fixed interest is just enough to buy one scoop of low-grade ice cream. On the other hand, the Bank earns 10%-12% on your money. While you work hard for the money, the money does not work hard for you. Reading Robert Kiyosake's book, "Rich Dad, Poor Dad" hits the nail for me. So one day, I withdrew all my money from my savings account and opened a securities account. I did not regret my decision. My average ROI for two years was 24% way, way above the 0.5% that my savings account provided me before! I thought to myself that I should have done this ever since landing on my first paycheck.
The performance of my stock investment was encouraging even when my knowledge about stock investing is very limited. I only have one guiding principle which comes from Warren Buffet, the sage of Omaha, "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." Simply put, this means buy stocks when everybody is selling and sell stocks when everybody is buying.
When the Bank that I was working for offered an early retirement program, I applied for it. The timing was perfect as if made in heaven. Three years before, I was already planning to go full time into stock investing but the money that I had then was not enough to do it full time. In 2010, I was already feeling restless in my job. While I was still working as much as the first time, the enthusiasm and the excitement were no longer there. The fire in me was dying out. When I heard of the early retirement program, I immediately applied for it. From then on, there was no looking back.
I am now more than one month into full-time stock trading and investing. I am finally out of the pond and swimming in an ocean of possibilities. I either sink, swim or get swallowed by the sharks. So far, so good. I am learning new concepts, new ideas, new techniques. Every day, I am excited. The stocks I am following are going down three weeks in a row now. Good news for me. It is time to be greedy when others are fearful.
Good for you, Rex! I've always thought of investing either in real estate or on stocks. I have little knowledge of securities, as well. I am now looking at mutual funds. I was thinking when we have enough surplus we should invest there. Good move! I'm happy for you. Are you studying trading now?
ReplyDeleteShalom