How To Identify Bullshit Investors Say

How To Identify Bullshit Investors Say

This might be an uncomfortable read for some. If you might take umbrage at what you are going to read, I suggest heading to other friendlier parts of my website such as “what’s holding us back in our wealth management journey”.

The market don’t really make sense on a day to day basis. Benjamin Graham, father of value investing famously said this. “In the short run, the market is a voting machine. In the long run, the market is a weighing machine.” Personally, I agree with this and that you should really invest in the companies you want to see grow in the long run.

Alas, in real life we have plenty of distraction coming from our friends, “Gurus“, Gamestop, Bitcoin, Elon Musk (just to name a few).

On the ground, here is a story of bullshit that I hear one investor says and here’s how to identify them.

How To Identify Bullshit Investors Say
How To Identify Bullshit Investors Say: Hulk Says BULLSHIT!

 

There are 4 stages of Bullshit that you get to hear. It follows very closely to the market cycle.

4 Stages Of Market Cycle
4 Stages Of Market Cycle

The most noise happens typically at stage 3. One recent example would be the market crash of March/April 2020. Let’s start here.

Stage 3: This time is different. Wait for confirmation.

As Sir John Templeton puts it, this time is different is the 4 most dangerous words in investing. During March/April 2020, the stock market crashed. People were pulling money out of the market because they felt that COVID19 was going to have a significant impact of the economy.

During a crash, the best thing to do is to keep calm and learn how to endure the correction. As easy as it may sound, it is not easy to do. I know of people who are pulling out or adopting the stay at the side saying “this time is different”. The crash will be longer than usual and this is the first time (not really) that a virus has made it’s way worldwide. Every sensible country is in a lockdown. The entire economy is in a standstill. This situation will drag on. It is better to keep some in cash.

Most people don’t do anything (if they have the capital) or they may take losses to protect their capital because “this time is different”. This is bullshit because this is the best time to invest in companies you always wanted to.

Stage 4: Some leverage is good debt. Let’s 10X our capital.

Things are recovering right now. People are starting to enter the market. At this stage, most people would be making money from the stock market easily. If you know someone who have invested from May 2020 to Dec 2020, they will be bragging how they can be financially free in no time. They are looking into leverage instruments because they are looking to 10X their capital!!

This is the time to go long because economies are recovering. Some sectors have benefited and it is obvious (in hindsight) that they are benefiting (WFH stocks like zoom). You are a little late but there is still some time to enter. People all around somehow are making money and you don’t want to left out.

More bullshit because greed is now fueling the stock market. This is the easiest time to make money no doubt. Talk is cheap, people are showing off their results on Facebook. Almost everyone is making money here.

Stage 1: Value Investing is Dead. You got to pay more for quality.

This the most scary part of the cycle (in my opinion). The market is over-heated and valuation are rich. The narration here is “you got to pay more for quality”. As more and more people starts to pay more, the price of the stocks starts to go higher and higher. Cathie Woods starts taking central stage here in 2020 with her ARK funds outperforming all major indices. People starts to buy into the idea and invest with higher prices.

The ultimate bullshit because prices are going to the moon now. No one is concern about fundamentals. Everyone is waiting for the stock to gap up and celebrate until…

Stage 2: You need to have diamond hands. Valuation is everything.

For some reason, earning beats don’t increase the stock price anymore. Although the results are fantastic, stock prices are dropping. Stock prices drops and people start to think that there is a “sector rotation”. Here, you will need to have diamond hands as you have bought the stocks are “good prices” already.

However, stock prices continue to drop. Warren Buffett takes central stage again. Gurus are saying valuation is everything. Prices continue to go down and people gets worried. People begin to sell in companies that they have less conviction in.

Bullshit because it is too late to notice that valuation was too rich before.

 

Final Thoughts By Wealthdojo

The cycle continues on. I heard this bullshit in the last one year all from the same investor. I cannot imagine how inconsistent his/her investment strategy is and how many people have lost money because of him/her.

To put things into context, the above advice are good advices except that it is adapted conveniently to sound smart in the market. Investment is not all rosy and sunshine. It comes with rains and storms. We need to learn when is the best time to plan the seeds, when is the best time to wait and when is the best time to celebrate. A far sighted plan is needed to prepare oneself in their investment journey. Average investors learn from their own mistakes over time. The best ones learn from other people’s mistake using their time and experience. Investment is not complicated. You just need to learn from the best and apply it.

All the best to everyone enduring this correction.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

3 Things I Learnt About Gamestop Wall Street Bets VS Hedge Fund Short Sellers

3 Things I learnt from the Gamestop Saga

It is 29 Jan 2021. Gamestop (GME) share price is $325. It has gone up a long way since early January when price is around $17. The battle is still on. Several brokerage companies like Robinhood has started to restrict trading on GME. So much for a company that believes that everyone should have access to the financial markets. With this, I believe there might be more interest going towards Bitcoin.
If you unsure what happen, do check out the first article How Gamestop is better “investment” than Tesla, where we explain the hype on GME.
Disclaimer: I do not have any position in GME/Bitcoin. Indeed, I have “missed” out on the huge runs of those companies but time will tell. Here at Wealthdojo, we seek to understand what has happened fundamentally. Even in the insane movement in the stock market, we aim manage our wealth in a logical and systematic way.
3 Things I Learnt About Gamestop Share Price
3 Things I Learnt About Gamestop Share Price

 

The Update

Things were not pretty over the last few days.

  1. Hedge Funds had to closed their short positions taking in huge losses. Melvin Capital (the guys that have shorted GME) have not announced how much losses they suffered but Citadel and Point72 have infused close to $3 billion into Melvin Capital to shore up its finances. They have also deny going into bankruptcy but supposing have been bailed out.
  2. Several brokerage companies started to restrict trading. On 28 Jan, they only allowed people to sell their shares of selected companies. On 29 Jan, they allowed people to buy only one share of selected companies. This came as an outrage as if you restrict people to only sell. There is only one direction the company can go.
  3. Robinhood started to draw up to $600 million from their line of credit. They have also raised more than $1 billion from existing  investors. It is to pay customers who are owed money from trades and also fulfil regulations. They probably did not manage risk properly by allowing those shorter to short too much.

From this episode that is still ongoing, I hope to share 3 important lessons that we can learn as retail investors.

 

Leverage

Time and again, this word comes out to haunt the financial market. If you can remember the 2008 financial crisis, lines of credit is so easily available that even a prostitute can take a dozens of mortgage loan (Unverified information from Netflix: The Big Short).

When you leverage, you are using money that you don’t have to purchase a stock.

Leverage example:

You have $100,000. You want to invest in ABC shares (assume it is $1) because you believe the share price will double for whatever reason in the next few days. You leverage by borrowing another $100,000 to invest paying an interest (we are going to ignore interest in the calculations). You buy 200,000 shares using your $200,000.

When ABC shares doubles (now $2), you would have $400,000. You pay back $100,000 and your portfolio is now $300,000.

If you didn’t leverage and borrow, your portfolio only grows to $200,000.

Your money grows “faster” when you leverage.

However, if ABC shares drops to 0. Your original $100,000 is now 0. However, you now owe $100,000.

If you didn’t leverage and borrow, your portfolio just suffers the maximum lost of $100,000 but you do not owe people’s money.

The above is a 1:1 leverage. It is possible for you to have a 50:1 leverage in the financial market. Imagine how scary it is if the trade don’t go according to plan. That’s 50x of $100,000.

 

Investing with margin or leverage is the fastest way to lose all your money. We won’t deny the fact that it is also the fastest way to make more money. Ideally, you should only invest with the money you already have. I believe we will see how this spans out in the days ahead especially if there are big hedge funds using leverage in their GME positions.

Prisoners Dilemma

I never thought I would see this happening after my university days. Readers of Wealthdojo will probably know I’m a behavioral economics fan. Seeing prisoners dilemma play out in real life is somewhat very fulfilling.

Let’s set the context first. When the brokerage stopped people from buying. All you could do was to sell the stocks. Hence, it became a situation of sell or don’t sell among the retail investors.
3 Things I Learnt About Gamestop Prisoners Dilemma
3 Things I Learnt About Gamestop Prisoners Dilemma
I have created a payout table to facilitate the discussion on the prisoners dilemma.
3 Things I Learnt About Gamestop Prisoners Dilemma Part 1
3 Things I Learnt About Gamestop Prisoners Dilemma Part 1

Shareholder #2 best response is to sell. This is because if Shareholder #1 were to sell, Shareholder #2 is better off selling than not selling (2 > 1). If you sell but other investors don’t sell, you win but other investors lose. If Shareholder #1 were to not sell, Shareholder #2 is better off selling than not selling (5 > 4).

3 Things I Learnt About Gamestop Prisoners Dilemma Part 2
3 Things I Learnt About Gamestop Prisoners Dilemma Part 2

Similarly, Shareholder #1 best response is to sell. This is because if Shareholder #2 were to sell, Shareholder #1 is better off selling than not selling (2 > 1). If Shareholder #2 were to not sell, Shareholder #1 is better off selling than not selling (5 > 4).

3 Things I Learnt About Gamestop Prisoners Dilemma Nash Equilibrium
3 Things I Learnt About Gamestop Prisoners Dilemma Nash Equilibrium
The Nash Equilibrium for this game is for both of them to sell getting a payoff of (2,2). Logically, both shareholders will sell.
Although (4,4) is the most ideal for them, it requires all the GME investors to coordinate and don’t back out on the deal. It will certainly play on the motivation on the GME investors to stick on with don’t sell.

Motivation

3 Things I Learnt About Gamestop Wall Street Bets VS Hedge Fund Short Sellers
3 Things I Learnt About Gamestop Wall Street Bets VS Hedge Fund Short Sellers

I have learnt that in investing, different people will have different motivation. I find it bizarre for people to randomly ask someone on their opinion and whether to invest in the stock market at this moment of time.

If you ask a trader, he will say yes because the S&P is upward trending.

If you ask a value investor, he will say no because valuations are crazily rich.

If you ask a growth investor, he will say yes because there is still growth.

If you ask Warren Buffett, he will just buy back his own shares.

If you ask Elon Musk, he will tweet Gamestonks!

If you ask me, I will sit at the sidelines and continue to collect excellent companies and a sensible price.

For the people at Wall Street Bets, they are there to send a message.

 

If you decide to follow any of them, make sure they have the same motivation as you. Otherwise, you might find yourself in an awkward position.

 

Final Thoughts By Wealthdojo

When you thought 2020 was an epic year, 2021 came as another surprise. This episode definitely hasn’t closed yet. Who knows this might be a trigger for another financial crisis. If it comes, the question is “are you ready?”.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

 

Short Squeeze

How Gamestop is better “investment” than Tesla

It is official. Gamestop (GME) is now giving a “better returns” than Tesla (TSLA). GME returns stand at 3300% vs TSLA 691% over the past one year. It is even better than bitcoin which is giving a 257% returns over the past one year. Just how did it happen? Is it too late to invest in bitcoin, Tesla or even Gamestop?

Here at Wealthdojo, we seek to understand what has happened fundamentally. For example, the impact of raising $5 billion from Tesla offering. We then see if it makes sense to invest in it or just speculate. Even in the insane movement in the stock market, we aim manage our wealth in a logical and systematic way.

Disclaimer: I do not have any position in Bitcoin, TSLA or GME. Indeed, I have “missed” out on the huge runs of those companies but time will tell.

Tesla VS Gamestop
Tesla VS Gamestop

 

How did this happen?

It happened for TSLA. It is happening for GME. This movement in the stock market can be summarised into 2 words.

Short Squeeze

What is a Short Squeeze?

A short squeeze happens when there is a (1) sharp rise in the price of an asset. For traders who previously short the asset, they are (2) forced to close out their positions. As they are forced to now (3) buy the asset at that current price, this tends to send the prices even higher.

In simpler words, a strong buying pressure “squeezes” the short sellers out of the market.

 

Example of a Short Squeeze

For example, stock ABC price has been falling over the last 2 years. Let’s assume that it is now $10. Short sellers (people who sell the stock without having them) sell the stock ABC at $10 hoping to profit from the decrease in prices. (In a hypothetical example, if price becomes $1, they just buy it back at $1 and profit the $9 difference).

However, something happened. This could be a favorable earnings or simply a tweet. The price (1) rapidly increase. Let’s assume prices is now at $20. They are now under pressure if they are on margin (2) to buy back the stock at $20 or risk having the price going up further. At this moment of time they would already be losing $10. They scramble to close/buy the stock (3) at $20 sending the price even further. This keeps escalating until all the short sellers are pretty much out.

 

Case Study of Short Squeeze

In July 2020, the dollar value of all shorted Tesla shares is close to hitting $20 billion. No US stock in history has ever been that shorted. On 23 Oct 2020, TSLA reported a profitable quarter. When the (1) share price increase, the short sellers were forced (2) to buy Tesla shares. This in turn send the price even further (3).

Another example is Volkswagen in 2008.

 

How to identify a potential Short Squeeze?

There are many indicators to identify a potential short squeeze and I will try to explain it in a quantitative and qualitative way.

Quantitative: Short Interest

Short Interest is number of shares that have been sold short but have not yet been covered or closed out. Short interest, which can be expressed as a number or percentage, is an indicator of market sentiment. The larger the percentage, the more shares that are being shorted.

Quantitative: Hated Company / Movement Driven

The 3 above are just an example of strong emotions in retail investors. The more someone “hate” the company, the more he is committed to short them. This can be seen from Tesla cult-like investors who either love them or hate them.

After that, it is just waiting for the right moment for it to pop.

 

Can you profit from a Short Squeeze?

You definitely can. This screenshot has been making it’s way on the internet and this isn’t the final profit that he has. The current price of GME is $209 (27 Jan 2021) and the last price in this screenshot is $65. He has amplify his returns using options so god knows his returns now.

However, I would advice otherwise from chasing this return. This is purely speculative and nothing short of a gamble.

GME Short Squeeze Profits
GME Short Squeeze Profits

 

Final Thoughts By Wealthdojo

Short Squeeze
Short Squeeze

The market is an representation of the collective human behaviour. I personally think that it is an amazing run for GME. However, I rather sit on the sidelines along with Warren Buffett to watch this play out. Congratulations for those who profited.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

 

 

2021 New Year Revolution

Start a Financial Revolution Not Resolution in 2021

It is 2021. I find it annoying that there are still tons of articles out there will tell you to write down New Year Resolutions such as paying off debts, spend less than you earn, set a budget, drink less Starbucks etc. It is 2021. You already know that. In the new era, it is not about finding information. It is also not just about finding the right information (6 Steps Wealth Karate). In the new era, it is making use of the right information easily.

Some of readers have shared with me they fall short of their 2020 financial resolution because they have the lack of clarity or strategy. I wish to take this one step deeper. It is not that you did not know what to do. It is also not that you did not know how to do. However, psychologically it is not easy.

In this article, I will be writing how to start a financial revolution so that you can create the right environment to win psychologically.

Now, all this can only be done after done this: You can only start 2021 properly after doing these 3 things. Start here first.

 

2021 New Year Revolution

2021 New Year Revolution
2021 New Year Revolution. Photo from Huffpost.

To put yourself in the right environment, you need to first understand yourself. I summarized this by a quote that I frequently used.

There are three things extremely hard: steel, a diamond, and to know one’s self. ~ Benjamin Franklin

After understanding yourself, then you can create the right environment for success. You want to create a system that is psychologically easy to win. Here are 4 ways to put things in your favor psychologically. I bet you will not be able to find this easily elsewhere.

 

#1: Set Weekly Budgets Instead of Monthly Budgets

Ever wonder how we could save so much when we were students but not now? The trick is that most of the students are given a weekly allowance instead of a monthly one. When students then track their budget on a frequent basis, this creates a saliency effect. The more we noticed something, the more we are aware about it, the more we will review it.

For majority of us, we are now following a monthly budget. We don’t review it as often and so become surprised when we overspend during the 3rd or 4th week of the month. If budgeting is an issue for you (psychologically), set weekly budgets.

If you are planning for big ticket items, you can consider using this to help you. If you have spending issues, do read our Ultimate 4 Quadrants Shopping Guide.

 

#2: Audit Your Finances

Just like teachers marking the examinations paper for students, or MAS checking the quality of consultant’s advice, we feel a certain pressure and would want to make sure that our work is correct. It is the same for finances. It has came to my attention that most people don’t audit their finances at all. This means we will not know if we are on the right track when it comes to finances.

Auditing your finances is very simple. Just like a teacher marking each question, ask yourself if an expenditure is reasonable. Notice that I mentioned reasonable rather than “correct”.

For example, one of my friend have been subscribing to Spotify for $9.99 a month. He initially subscribed to Spotify because he wanted to listen to ads-free music on the way to work (I think that’s pretty reasonable). However, in March 2020 he has started to worked from home and he realised he has forgotten about it and is continuing to pay for Spotify but have not been using the service for the past 7 to 8 months. He has now stopped the payment but will be taking it up again when he needs to travel to work again.

I recommend you to audit your finances once every half a year. Spot those that are “unreasonable”. They could help you save a lot in the long run.

Financial Revolution 2021 Audit
Financial Revolution 2021 Audit: Source: CIA

 

#3: Allocate More

Do this only after you have already prepared your emergency funds. After that, yes. Allocate more.

It is very natural to feel happy when you see your bank account increasing. However, you will only realised the effects of inflation after many years. I strongly recommend you to allocate more when you have the opportunity. Whether it is an insurance policy, an endowment policy, an investment policy or buying into stocks or property, I encourage you to add more when the time is right.

To psychologically help you, you can employ certain tools such as regular saving plans to deduct a similar amount every month. This automation will help you allocate more and yes be on your journey to financial freedom.

 

#4: Sell Things That Are New That You Don’t Want

Look around your house right now, I believe that there will be some items that have been there sitting in the cupboard for a while. Be it a gift from a friend or a book that have not been touched or a lucky draw that you have won, there will be some item that has been around but have not been used.

Take this opportunity to do some spring cleaning and make some money. Put it on carousel. You will be surprised at how much money you can make out of your own room.

Before selling them, ask yourself 3 questions.

  1. Have you used it for the last 3 months?
  2. Will you use it for the next 3 months?
  3. Does it have sentimental value?

If those answers are no, those items will not be missed. This is where I personally sell my own items. Check out my Carousell items to give yourself an idea.

 

Final Thoughts By Wealthdojo

Don’t start a resolution, start a revolution! If you haven’t been successful in your financial journey, just pick one of the above and commit to it for the next 3 months. I assure you that you will look back at 2021 and be proud of yourself.

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

 

Trace Decay Theory

You can only start 2021 properly after doing these 3 things

Oops, is it 2021 already? If you are like me, the last few days was like a blur. A combination of Christmas, New Year and wine probably pushed the thoughts of wealth management to the back of our minds. But that’s alright, that’s what Wealthdojo is here for. In 2021, Wealthdojo will focus more on emotional finance (something that isn’t really talked about among financial experts).

But wait!

Before you get busy into life (again), take a step back. Don’t be a hamster in a wheel and start grinding/hustling. Take a step back and ponder on what worked last year, what kind of fruit your hustle bore and also your achievement you had. It is easy to continue forward. I challenge you to take the next 15 minutes for this exercise. I guarantee you that the next 15 minutes will set the stage for your 2021.

 

#1: 13 Milestones of 2020

It is very human of us to forget after we finish something. According to Trace Decay Theory: The theory that if memories are not reviewed or recalled consistently, they will begin to decay and will ultimately be forgotten.

Trace Decay Theory
Trace Decay Theory: Did I watch this movie last year?

We quickly forget about projects we completed whether professionally or personally. One very popular response I get when I remind someone of their achievement is this.

Me: “Remember you achieve XXX in 2015?”.

Someone: “Got meh? Now you say it, seems very familiar”.

Today, I challenge you to write down 13 milestones that you have accomplished in 2020. This is very important because we tend to discredit ourselves for things that we have done. By writing down our wins (even small ones), we are training our brain to appreciate the success we are achieving. It is also a strong intrinsic motivator for ourselves. Whether it is big or small, write it down. It is your milestone for 2020 and no one will be there to judge you. For those of you who have more, go beyond 13.

If you wish to read more, I will share 3 of my milestone in 2020.

 

First Death Claim

One July evening, I was having dinner with my friends when I received a text from a client, David (fictional name to protect the identify of the client).

“Hi Chengkok. My wife passed away this morning.”

I stared at my phone for a few minutes before my friend poked me in the ribs. I was slightly dazed and felt as if my mind was floating. I excused myself to go to the toilet still thinking of what to say, how to reply and whether to call David. With what felt like hours, I could only muster a simple “My condolences to your family. How are you?”.

“I’m fine. Could you help me with my wife’s death claim?”

I doubt David was fine that day. During the day when I met him, I could see the dark rings under his eyes. His eyes were puffy and seemed unfocused. It was a hard conversation even for me. I repeated to him what his wife shared with me when she first bought the policy. It was a policy that will mature in a few years time, the time when their children will be all grown up and she was hoping to use the money for their retirement holiday. It wasn’t much. The maturity was in the range of few thousands but she was very enthusiastic about it. I heard a big sniff and a very soft “Thank you”.

In the next couple of weeks, I settled the claim for his family. In the financial services industry, I am no stranger to death, critical illness or hospitalisation. I have done numerous big claims and small claims amounting up to 7 figures and in the course of it impacted and changed many lives. However, my first death claim stirred many emotions in me and reminded me how fragile life was. It was really my pleasure servicing you.

 

First Roadtrip in Australia

It is strange that having a first road trip in Australia is a milestone. For the many drivers out there, you might think this is a joke. Except for someone, who had a driving accident before.

Breakthrough
Breakthrough

In Nov 2016, I was young and wanted to “save time in my itinerary”. The result was a very tired driver (me) and a crashed car. I was alone in New Zealand when I crashed. I was very tired and fell asleep on my wheels. One second. One second was all it took. I nodded off and the next thing I knew, I was skidding down into a rocky path. I honestly thought I would die. When I crawled out of the vehicle, I was trembling. As I sit down on the rough rocky road, I couldn’t help but notice that the surrounding was so beautiful. Thank goodness it wasn’t my turn to go.

Ever since then, I had a fear of driving. My senses will be heighten whenever I had to drive. Driving a mere 10 minutes felt like running a marathon. I knew I was holding on to a high amount of mental tension.

In 2020, it was decided that I would go on a road trip in Australia. The first day experience was extremely tense. I was horned at, the cars around me was going very quickly and I felt paranoid from the constant pressure from the car behind me gave. However, after 2 days, I felt more comfortable and more confident driving. Though I still feel the tension, I learnt to be aware of the tension but not let it overrun me. It was certainly a breakthrough.

 

First MDRT

I got a surprise when my Director called me up to share with me that I was very close to MDRT (Million Dollar Round Table). During the time, we were in the midst of the circuit breaker. COVID-19 literally paused the entire economy in Singapore and World Wide. I thought this would be year of survival. Never would I thought this is the year I would achieve my first MDRT.

For those who are new to this term, it represents a milestone for financial consultants as it means that we are among the top 5% of consultants world wide! I never dreamt of achieving such accolades in my career. My intention was to help the Educated Poor elevate themselves to achieve the financial success they would given the right tools (6 Levels Wealth Karate) and right mindset.

This success is build on trust and referral from my clients and friend. A big thank you for helping me achieve this milestone in 2020.

MDRT Chengkok
MDRT

Hope you enjoyed the read. Now it is your turn, what are your milestones for 2020?

 

#2: 20 Things to be Gratitude for

Our brains have been trained to look out for threats and worries. That’s how the human race has survived for the many years. It is not difficult to think about something that we are worried about. However, remembering what we are grateful for can help to tip our brains to thrive instead of survive.

I challenge you to make a list of 20 things you are grateful for in 2020.

These are a few of mine.

  1. Healthy (no major sickness)
  2. Can work from home
  3. Self invented tofu sleeping technique (to sleep within 5 mins)
  4. Trust and referrals
  5. Having a listening ear
  6. Parents fast technology adoption rate

What’s yours?

 

#3: Who do you want to be?

In the last 10 years, I have been taught to write out your goals, what you want to achieve in the upcoming year and our New Year Resolution. However, these New Year Resolution rarely make it pass February. The reason why it is so difficult to “lose that weight”, or “save that amount of money” is because these are tasks that we have to complete.

As human beings, I believe we are lazy in nature and these tasks (especially if they are difficult) tend to be put off until the last minute or the next year. Instead of having goals/tasks, I challenge you to write out who do you want to be list. Create an identity that you can be proud of.

Instead of “Lose 5kg”, consider “I want to be fit”.

Instead of “Save $10,000”, consider “I am accountable to my money”.

Instead of “Read 10 books”, consider “I want to upgrade my brain”.

The actions will follow. Personally, I want to be a thought leader in personal finance. I want to be an inspiring leader and I want to be physically active and strong.

What’s yours? Share it in the comments below.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

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