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Winning the Game of Stocks: A Simple Guide before Playing the Game
Aspire | 31 August 2015
By: Chen Xushuang
Articles (26) Profile

If you have watched the Game of Thrones, you might have found the plot shockingly unpredictable. The “game of stocks” is similar in terms of its unpredictability. Speculating the movements of the stock market is hard. Its emotions can be volatile, irrational, and indecipherable as they are affected by the emotions of millions of players in the market.

Pictured: Reaction towards the sudden stock market crash

Does that mean that one should simply keep away from investing in stocks forever? Not necessarily. What one should do, however, is to go to the game prepared, and this means being armed with the knowledge of what the stock market is about, how it works and why so, as well as the appropriate methods and mindset to get closer to success. Needless to say, these areas will all be covered in Adam Khoo’s book “Winning the Game of Stocks”. The book serves as a comprehensive guide to investing in stocks, and the concepts are explained in a way simple enough to be understood by the average reader.

Easy Intro to the Stock Market

Readers who are new to finances and stocks will appreciate the chapter  “A Crash Course on the Stock Market”, which offers concise and clear-cut definitions of stock market terms and explanations of how it works. The chapter also introduces readers to two main approaches to tell a stock’s potential increase, namely, the logical approach (fundamental analysis) and the emotional approach (technical approach). This teaches readers how to analyse stocks in both the long term and the short term respectively. On top of that, the book also teaches readers how to read and interpret stock charts and candles, identify changes and trends, and make meaning out of moving averages. With the help of the well illustrated and clearly labeled charts that the book provides, such tasks seem much less daunting. It is also encouraging to know that one does not need to be a finance expert to be able to identify uptrends and downtrends, and decide when to buy and sell.

Know Your Game, but Also Know Yourself Here is a quote from The Art of War by Sun Tzu: “If you know the enemy and know yourself, you need not fear the result of a hundred battles.” Apply this to investing and you will realise that being knowledgeable about the relevant financial concepts and well informed on stock picks is not entirely sufficient to building a portfolio that works. You will also need to know yourself, and this means that your portfolio should be aligned to your lifestyle and risk appetite, as recommended by Adam Khoo. He even provided examples of different types of stock portfolios with combinations that vary based on whether you are conservative, moderate or aggressive in your investment style. In fact, he stated “Mind” as an integral part of the three keys to success (Method, Money & Mind). He explained that in real-world investing, wins and losses might not come evenly distributed all the time (even with an effective strategy), and thus it is important for one to have the emotional discipline to manage drawdowns. In many ways, the game of stocks is also a mental game, and thus Adam Khoo also makes it a point to teach his readers how to manage their mindsets.

Winning the Game of Stocks is not a crystal ball that gives you a glimpse into the future stock market scene. Neither is it a recommendation guide that promises absolute investment success, even though the author of the book is an experienced and successful investor himself. However, it can be a useful tool when it comes to helping readers become more financially-educated such that they can make more informed decisions before engaging in the game of stocks. Adam is conducting a FREE 3-hour seminar on 2 Sep 2015 (Wed), click on the button below to find out more. Talk to Adam Khoo face-to-face!

As a Communications Studies graduate specialising in journalism, Xushuang is keen to observe and explore issues that readers want to know more about, and to deliver quality content through engaging writing.

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