Tuesday, March 11, 2014

Redefining Business and Investments - Technology

Advancement in technology has revolutionize opportunities.FREE Trading platforms accessible to commoners and no longer restricted to price quotes from REUTERS or BLOOMBERG for different global exchanges made opportunities readily available to us instead confining to bankers and fund managers.

The media coverage of the different types of fund managers known as investors and hedge funds draws a parallel line that prosperity is within reach if one focus on the right market(s).

To own and operate a brick and mortar business, there are many variables to consider or manage - 1.Physical location (lease or buy), 2.labor, 3.license, 4.currency volatility, 5.commodity volatility, 6.seasonal factor, 7.competition, 8. credit terms 9.laws, 10.inventories, 11. thefts, 12. security and 13. INCOME TAX.

To own and operate a personal investment business you can avoid all the above. All you need to do is to have a proper strategy to swim with the market cycles.

The returns on brick and mortar business is generally slow given that one has to invest in capital to prepare the site and time. In short, you have lost your money first before you receive any income which can be a few months to a few weeks or a few years before you break-even!

When one venture into the financial markets, the expectation of patience to break-even for a brick and mortar business is immediately changed to STOP LOSS!  Profits are INSTANT if you get it right.

Irrespective of operating a brick and mortar business or private investment business, one is subjected to RISK. The risk factor in financial market is easily managed if one has the proper and good strategy. When one has master the art of simple analysis, you will realize that one can achieve much substantial return per dollar in financial investments than brick and mortar business.

Until we fix out mindset, we will never be able to see and think properly the vast opportunities before our eyes. When one is willing to capitalize a few hundred thousands to start a brick and mortar business, the same person will be reluctant to invest a few hundred thousands in financial markets!   

My bias towards financial markets is not without much thought and considerations. I have thought over deeply the advantages and disadvantages. Having personally develop, build and operate physical brick and mortar business and running along financial investments in parallel, I have decided to unwind most of the physical business that demands a lot of my time and capital diverting most of my attention to financial markets which are more flexible and exciting.                 

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