Happy Lunar New Year!

Dear friends,

If you're reading this, I'd like to take this opportunity to wish you a very happy and prosperous Lunar New Year. If you're Chinese and follow the tradition, may you have a great time visiting and spending time with your family members and friends! If you aren't, I would also like to wish you an awesome extended holiday with your family and friends! 😁

(image credits: clipartfox.com)

Remember to stay happy, and calm!

During this festive season, I do know that there are investors out there who buy (for good luck) and also those who sell (due to the increased demand!). I would just like to remind everyone (including myself) that whilst doing this, remember to make prudent and informed choices!

The stock market is much about human psychology after all, and when prices go up and up, with the markets being in the green, it becomes "easy or good to buy" to non-holders. On the other hand, holders are tempted to sell. During such times, I suppose it is important for both non-holders and holders to think again; about their investment thesis for the counter in question: has it changed? (well of course this is assuming that you are a medium-long term investor and not a trader.)

If the answer is no, then there you have it. You don't have a good reason to buy or to sell. Excessive buying and selling can potentially lead to regrets due to the opportunities lost (e.g. oh no i sold the shares of the company that I was very confident in and the price went up!), and also due to the heft brokerage fees incurred (> $20 generally for each trade is a lot of money!). I thought of the second point as I do know of a friend who makes many many trades and still end up holding shares in the same company. And this is without making any profit from the trades, coupled with some losses incurred due to the fees involved!

This argument does not just apply to this festive season but also to every other occasion in the year which influences short term investing decisions and hence the overall market direction. So, remember to keep calm when making your decisions!

That is all from me today, once again, I'd like to wish everyone a safe, happy, and prosperous 2017 ahead.

Best Regards,
A 😁