It is a fact that the local market condition is very hard to predict since it is affected by both global and local factors. As an investor, it may not be possible to predict what is going to happen next, but there are certainly ways to learn from people who have succeeded in riding the waves of good and bad times throughout the years.
In the book ‘The Winning Investment Habits of Warren Buffett & George Soros’, Mark Tier listed out 23 winning habits, based on the habits of these two of the world’s richest and most successful investors. Summarized below, are four main key habits that you might want to adopt as the fundamentals to successful investing.
Markets all over the world rebounded last week after moving into a bullish trend correction in the last two weeks. A month ago, the Europe market, bench marked by the FBMKLCI breaks out from a correction when the index was at 1,200 points and went as high as 1231.49 points before pulling back to test the Bollinger Bands’ middle band. Then it rebounded from this middle band, which is a 20-day moving average to settle at 1230.09 points on October 8. The FBMKLI increased 28.2 points or 2.3% since last month. The market is currently testing an immediate resistance level at 1,230 points.
Daily FBMKLCI Chart
Trading volume was disappointing as it only increased slightly in this last week when the market rallies after the rebound. The average daily trading volume last week was 750 million shares and the previous week’s average was 662 million. Average daily trading volume below 1billion shares are considered weak. The market was slightly bullish because of positive leads locally and internationally. Locally, industrial production and export numbers were growing on-month and jobless rate fell. World Bank confidence about having a positive GDP in year 2010 and increasing foreign participation in the local equity market boost confidence further.
While properties can make you a lot of money; they are often the source of many problems as well. Thousands of property investors have found this out the hard way. Instead of generating income, the property is generating them endless problems: tenants problems, vacancy problems, maintenance problems, broken promises by the developer and perhaps the worst problem of all, uncompleted and abandoned properties.
So yes, property investment is a tricky business. To be successful in it, there are numerous factors that one must consider. One obvious factor is the financial aspect: the price, down payment, financing, interest rate, etc.
For example, engineers are much disciplined and are good at following rule-based systems. When they follow a rule-based back-tested system, this can help control emotional behavior. Emotions play a large part in financial markets.
Medical doctors are scientific and base their decisions on logic and evidence. Successful investors weigh the facts and a doctor’s thought process will give him an edge over those who make decisions based on emotions.