Invest how?

There are many ways to invest. And the truth is that they all work. Well, some are scams but notwithstanding that, there are multiple ways to make $ in the stock market.

However, some ways are better than others on average for the average person. Think value investing.

Be an intelligent value investor

Value investing is simple. Value investing, at its core, advocates that you take advantage of the stock market to buy good quality businesses at a discount to what they are worth. 

How hard is it to understand that you are getting a good deal by buying something undervalued? Not at all. 

And by limiting the investment universe to only good quality companies, your risk of losing money is reduced significantly.

And because the investment universe is small, you spend a lot less time researching on them. If all you had to choose was between a bungalow in Bukit Timah and another in Tanglin, you clearly have less research to do as compared to going through all the HDB, EC and private condos projects out there.

Which is why value investing is usually the best method for the man of the street. It is simple, it is relatively less risky and it requires relatively less time.

Be an intelligent speculator

For those who are more ambituous and who believe they are better than the average man, you can make it rich by being an intelligent speculator and flip pieces of paper in the stock market.

Again, there are multiple ways to do this. Most look at stock chart and try to divine patterns. Some just punt on stock tips, which is almost no different from going to the casino.

What few people do, is to combine the concept of value investing and motivations of market participants to make sound investment decisions. And which is what I do.

Its all about risk/reward

At the end of the day, the unifying concept behind all methods is the concept of risk/reward. Simply put - how many $ of profits can I possibly make for each $ that I may lose. A good method is one that achieve good risk/reward performance and puts risk management as its priority.

So what is the right method for you?

Here's the truth. Investing is not for everyone. It is only for those who are willing to put in some effort to learn how to do it. 

If you are lazy & greedy, join a get-rich-quick scam (see www.get-rich-quick-scam.com)

If you are lazy & ok with medicore returns, do passive investing (come for our free preview course, where we teach you how; contact jay)

If you are willing to put in some effort but not that much but want good returns (think 10% per yr, value investing is the way for you (we teach you how to do it step-by step at www.i3-institute.com). 

If you are diligent and greedy for high returns, learn how to be both an intelligent investor & an intelligent speculator (contact me here; we have something for you)

Have more questions on what value investing is? See here