Achieving A Passive Income Through Value Investing (Part 2 of 2)

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Everyone I spoke to wishes to have a passive income, but, most of them commented that they have very little capital to start with. Not only that, they are concerned with losing that capital. 

I understand it totally. Let me share with you my story:

When I joined the stockbroking industry as a Remiser in July 2007, the equity market was experiencing a super bull run. Almost everyone could make a decent profit trading stocks. It gave any amateurs the wrong impression that they were experts, and making money from the stock market was a piece of cake.  

 After a few months into the job, I got a little aggressive. Having read news that Singapore Exchange (SGX) had record earnings, I bought this counter big time. That same evening, I attended a talk conducted by my company’s top Remiser. There he was, advising us to sell because the market was toppish. What?! You can imagine my surprise! I had just bought this counter, SGX, on grounds of good earnings yet this person told me he has sold this stock instead! In fact, he shorted (selling without having the shares of a particular counter on hand) this counter. I wanted to cry out loud there and then. Truth be told, the price of that counter dropped from the moment I bought. Eventually, I cut my losses. It was a painful $16,000 loss.



There was a BIG conclusion I had drawn from this episode:
Do not think you can make easy money from the market without going through the hardship of learning some skills. If there is any chance of winning, it is pure luck. And luck will definitely run out. Most people lose money than winning. Needless to say. I.felt.lousy.

I have learnt my lesson, a hard way. 


From then on, I attended previews after previews of workshops and seminars, and eventually signed up for a few credible courses, each costing me a few hundreds to a few thousands. I know, if I don't pay to learn, I will just keep paying the market.

Of course, there are many investment/trading courses in the market, how would one know if they are credible or not. Because I was working in the industry, I was able to discern who are the real gurus and who are the self-professed gurus. And because it is so easy to sell you a get-rich-soon idea, there are really many self-professed gurus out there selling you nonsense courses. If you are not careful, you are not only going to give your hard earned money to the market, you are also giving your money to these undeserved self-professed gurus.

Over the last 12 years, I have learnt from a few masters who are of high integrity. Looking back, without attending their courses and their mentorship, I may still be giving money to the market instead, or may be I would have stopped trading and investing totally. But I am still doing both now, and I love the freedom that comes with them. As I honed my trading and investing skills over the years, I also got wiser when it comes to scrutinising these market gurus.


If you are interested in learning how to invest, to get a secondary source of income, and managing the risk of it, may I invite you to join me in this workshop that Pauline from Value Investing College is conducting on 10 July 1.30-5.30pm. Seats are limited, so register yourselves early to avoid disappointment, the link is here.


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