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Tortoise and the Hare

Here is the DMG Singapore Jan 2013 strategy and the UOBKH 2013 strategy for your bedtime reading.



I am sure you have heard the story of the Tortoise and the Hare. In the end the Tortoise won the race by being "slow and steady".

If I may add on the analogy, the Tortoise is like Investing and the Hare is like trading. Why do i say that?

I have mentioned in my blog that you have to know yourself and the time frame which you are in.

People who likes to trade are usually impatient. I took up trading because i want money fast. But money that comes "easy" also go away easily. You make $1,000 easily, you also spent that $1,000 easily. You forget to keep that $1,000 as equity for future "losses" and capital draw down. It is like the hare that "run quite fast" and then decided to "take a break". So you spent the $1,000 on shopping, holidays and meals. People who trade are earning an 'active income'.  Don't be mistaken, it is possible to make money from trading but it is just that you take a "higher risk" due to the bigger position and that you are constantly looking for the next trade and you are "glued" to your chair closely monitoring your position. 

People who invest slowly are like the tortoise. They take time to build up their capital slowly and in the end, they are able to build up a strong foundation where the amount of passive income they receive each month is sufficient to pay for their monthly expenses. They are able to withstand the market shocks and reach their goal of being "financial free" one day and actually finish ahead of the hare.

If you have not taken the first step towards investing, it is time to think about your future and plan for the future to create a portfolio that will allow you to retire early and you don't have to worry about the "colour" of your boss's face everyday. :)

Happy investing. It is a lifelong passion.

6 comments:

  1. Long-term investors can still do some short-term trading; but trading for a living (income) is really tough and probably a full time job as chart watchers

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  2. Welcome back Mr. 8888. I am sure you are one good example of long term investing with short term trading. :)

    You trade stocks full time?

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    Replies
    1. I have failed badly for trying to trade for income. :-(

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    2. I agree it is not easy la. The pressure will be quite big if need to use it for daily expenses.

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  3. Yeah, this is really nice analogy, i tried trading for 1 - 2 years but doesn't really come to anything after all the fluctuations in ups and downs.

    In contrast, i think i earn more from the longer-term investing.

    Thanks for the post :)

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  4. Hi James, look forward to more good posts on your KISS blog too :)

    ReplyDelete