A couple of weeks ago, I was having a chat with a friend who has been investing in the stock market for the last 5 years.
During the 5-year period, he’s made some pretty good returns on his investment following sound investment strategies.
He has been a disciplined investor where he buys only after he’s done some extensive research on a stock and holds the stock for the long-term. He’s not a speculator or a trader. So, he doesn’t time the market or follow any particular market trends.
He simply buys good companies with a good business model, good growth potential or good dividend yield, and run by good people.
However, in 2007, when the Singapore stock market was still in a bull run (the bull started in 2006), he started to speculate, hoping to make some quick bucks when he saw a few of his friends doing well riding the wave.
He did make some money initially. But as he moved in pretty late in the bull run, good times didn’t last long before things started to turn bad.
To make a long story short, he lost all that he’s made from his initial speculation and lost a further $60,000, all within a span of nine months. To rub salt into the wound, he was forced to sell part of his long-term investments to fund his loss.
In life, it is always easy for us to get distracted by the so-called ‘opportunities’. Although options are generally a good thing, you must not let them distract you from what’s already been working for you.
If you already have something that’s working for you, stick to it. Make it your goal to master it. Don’t start losing your focus the moment something flashy comes along.
There are certainly different ways or strategies to make money in the stock market; but the best way is to find a strategy that resonates with you and then seek to master it.
Being focused is the key. Seek to become a true master in a specific field rather than a jack-of-all-trades. That is the true way to success.
Cheers~
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on Jun 18th, 2009 at 2:53 am
This is a great point. When something is working for us, we’re often quick to ignore it or even abandon it. You make a greae point here in reminding us that we need to focus on what works. In a way, highlight our good qualities.
on Jun 18th, 2009 at 3:34 am
@Positively Present – Absolutely. We need to highlight our own good qualities so that we don’t forget what helps us to achieve what we want to achieve in the first place.
Cheers~
Mark
on Jun 18th, 2009 at 5:26 pm
I agree. Even within the business I have chosen like internet marketing, I need to focus on a niche and not be all things to all people.
on Jun 18th, 2009 at 5:58 pm
Sounds like your friend got a little greedy
It’s very often that we find we suddenly want to ‘try’ something because other people are making money and it seems so easy or effortless.
I say ‘try’ because it’s usually a case of copy without thinking, and not really trying or understanding how it works.
Good point Mark!
on Jun 19th, 2009 at 2:08 am
@Charles – Thank you for dropping by The Big Dreamer and leaving a comment. I appreciate that.
@Tristan – You’re right. My friend got greedy and greed/fear is the cause of an investor’s or trader’s downfall. When it comes to investing or trading, you can’t afford to let your emotions rule over you. Easier said than done. But you still gotta find a way to get a strong hold over it.
Cheers~
Mark
on Jun 19th, 2009 at 3:14 pm
Yeah you’re rite Mark! But I always can’t focus on what’s really making money for me. I always want new method that makes more money!
on Jun 19th, 2009 at 9:32 pm
@YingHang – Thank you for visiting The Big Dreamer. A lot of people are always running around seeking out the next big opportunity when they already have one right before them, so you’re not alone. I’ve written on this issue before. Check out my article:
The Power of One Great Idea
Cheers~
Mark
on Jun 20th, 2009 at 7:36 am
We are all bombarded with lots of stimulation – sight, sound, smell, taste, & touch – that’s the best and the worst of the time that we live in. It is vital to maintain focus and clarity.
There is a difference between being a big dreamer and a dream chaser; like the difference between chasing the wind and harnessing the power of the wind.
on Jun 20th, 2009 at 8:19 am
Hi Melody,
I agree we need to maintain focus and clarity so that we’re able to concentrate all our energy into becoming a master in a specific field. Nobody has been able to achieve any real success chasing opportunity after opportunity without first achieving any real result from the earlier opportunity.
Cheers~
Mark
on Jun 20th, 2009 at 2:35 pm
I visited your blog because i really like the name of your blog – BIGDREAMER
With regards to your post, it’s so true that people should stick and learn to the area they are already in, this helps gain experience and goes a long way in the future
Very good Post!
Cheers
Sandeep
on Jun 20th, 2009 at 8:30 pm
@Sandeep – Thank you for visiting The Big Dreamer. I’m really glad that you like the name. I really like it too.
I’m working to turn this blog into a community of Big Dreamers, so if you’re one, I sincerely hope you’ll join in the community discussion (a.k.a. commenting) more often.
Cheers~
Mark
on Jun 21st, 2009 at 10:09 am
Mark, fantastic point!
“Being focused is the key. Seek to become a true master in a specific field rather than a jack-of-all-trades. That is the true way to success.”
That is so true. We are seduced by the sexy and the get rich temptations.
on Jun 21st, 2009 at 8:06 pm
I agree. Focus on something that works will yield long term result.
hopping around will bring us to no where.
Do you think Adam Khoo’s teaching works?
on Jun 22nd, 2009 at 3:02 am
@Stephen – Thank you for dropping by! I’ve learnt the need to be focused in whatever you do through a friend’s experience which I’d written about in another article – The Power of One Great Idea.
@Relax – Thank you for dropping by my blog! Yes, I think Adam Khoo teaching works. In fact, I’ve written a series of posts on what I learnt at his Wealth Academy workshop. You can read about the lessons I’d taken from the workshop here – Millionaire Secrets Series.
Cheers~
Mark
on Jun 22nd, 2009 at 5:20 am
Hey Mark, sorry to hear about the predicament of your friend. I totally agree on the importance of focusing what’s already working. We should continue to use what’s been driving our success even as we expand to other opportunities.
By the way, I just changed my domain to http://celestinechua.com, so I was wondering if you can update my link in the side bar. Thanks a lot Mark!
on Jun 22nd, 2009 at 6:03 pm
@Celes – My friend has gotten over it and I’m glad that he’s taken a positive attitude towards his loss as a big lesson learnt. So I’m sure he won’t make the same mistake again.
OK, I’ve changed your link. Check it out!
Cheers~
Mark