Wednesday, 25 February 2015

My Beginnings

Many people have hopes and dreams of being financially free or being able to retire early. But few people actually set out to learn how to be. Fewer still are those who eventually take action.

It all started with a thought. The thought of not having to work for a living ignited my interest towards the financial world.

I was introduced to “Rich Dad Poor Dad” by Robert Kiyosaki when I was still in the Army and subsequently the finance section in the library became my next best friend. It took a lot of effort as I always had problems staying awake with a book in my hands. But I persisted and borrowed more than 3 - 5 books at any time. Most of the time I would borrow books about Warren Buffett, dividends, trading, FOREX, REITs, properties and options.

While I was flooding myself with the information from the library, I was saving about 50% of my NS allowance (Army provided food, clothes, and bunks for 5/7 of the week and I have a simple girlfriend who does not spend much). I went over the newspaper and attended almost all the previews that I could find that talks about money. But I never paid to attend their courses as I wanted to grow my funds first.

In 2012, I deposited my first 5K SGD into my brokerage account and bought my first stock, Mcdonalds (I love to eat Mcdonalds since my Poly days). When I told my mum about it, she kept telling me how dangerous the Stock Market was. She also started sifting through the daily newspaper to look for scams/ fraud/ any other bad news about the financial world and put them on my table (talk about being committed). Thinking back, I was hoping my first stock to have a good start. I ended up holding Mcdonalds for a little more than a year with profits of $32.64 USD including dividends.

After I cashed out towards the 4th quarter of 2013, I paid for a Wealth Creation course after hearing a friend giving good reviews about it (That was the only paid course I attended till date).

Maybe because I was lazy, I only started applying what I learned in 2014.


31-Dec-13
31-Dec-14


Total
Long
Short
Total
Change
Cash
10,291.32
3,840.72
0
3,840.72
-6,450.60
Stock
0
7,429.46
0
7,429.46
7,429.46
   Total
10,291.32
11,270.18
0
11,270.18
978.86

Time Weighted Rate of Return
9.51%

Although I did not earn back my course fees yet, I have to admit that the course gave me the strength and conviction to continue my financial journey. I was more committed to striving for my own financial freedom. That was when I heard about options selling from 1 of my friend’s recommended previews.

It took me more than 6 months to understand and another 3 months to try on a demo account. Nonetheless, my options journey took off at the end of July 2014 (also the time when my bonus came in so there was another cash injection of 10K USD into my brokerage account).

The rest is as follows.

Investing Wolf 
Disclaimer: This is not a recommendation to buy or sell any mentioned stocks or securities in this blog. 


16 comments:

  1. a good start!
    ahead of your peers

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  2. Hi Investing Wolf

    Good start there.

    You'll slowly learn on the job over time as long as you are invested in the market :)

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  3. The most important step is the first step :)

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  4. Hi Investing Wolf,

    We have a very similar start. I embarked on my investing journey after reaching Rich Dad Poor Dad books and I too camped in the library reading books on Finance.

    My advice is not to worry about missing the market. Building a strong financial base and knowledge is more important.

    Wishing you the best in your financial journey.

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  5. Thanks for all your comments. Sometimes, I just feel I did not start earlier.:)

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  6. Hi Investing wolf, don't think you are starting that late, at least not as late as me ;-)

    Keep going and keep accumulating....

    ReplyDelete
    Replies
    1. Haha... don't we all just wish we could turn back time and start as early as possible and let our money grow to be big as we are.:D

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    2. Hahaha: kind of.. Yes! But then again, the result might be the other way around too... In any case, I am a person that like to look forward instead of backward.. So, let's keep going from here

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    3. Yea. Let's us all go forward together.

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  7. You had a great start! Just press on and you will be like the rest of the investors achieving your FI.

    ReplyDelete
  8. Hi Wolf,

    I enjoyed to read this post.
    I have to say our starts where similiar I also started with stocks, but it was a little bit to boring for me.
    I like to see volatility so I had to switch to something else my journey brought me from real estate tot binary options and now Forex.

    If there's one thing I can say:
    from the good opportunities we earn money and from the bad ones we learn valuable lessons!
    I'm eager to find out where your journey will lead you.

    Cheers,
    Jesse

    ReplyDelete
    Replies
    1. Hi Jesse,

      I agree with you that we all make mistakes and the most important thing is to learn from them and never commit them again. I too went into binary options recently and lost the initial capital.
      As of now I'm only into stocks and options.

      Glad you dropped by and I'm also eager to learn from you guys.

      Delete
  9. Hey investing wolf, what was the course you attended?

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    Replies
    1. Hi Dexter,

      Unfortunately I would not be mentioning the course (I would not want to be promoting or giving comments on the course provider based on my biased opinion).

      I have to say that I read as much as I could (thanks to the national library) and because I was still afraid, I paid for the course (to give me the courage to take the steps required).

      That being said, if you are interested, you should flip the newspapers to look for previews to attend and see which courses you are interested in. I attended countless previews since my army days and even until now, I still attend some new previews occasionally.

      The trick is not be enticed (or bullied) into paying for a course immediately. Always take notes of what the trainer is talking about, go back and do your own research. Most of the time you can figure it out yourself after going through all the materials you can find {if not you can always ask us [or me:) ]}.

      Investing Wolf

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    ReplyDelete