Hello Modest Money fans! My name is Victor Chiu, author of the new book, Wall Street Kitchen – The Recipe Behind a Housewife’s 1000% Stock Return.
This new book I recently wrote contains the true story of how my mom was able to produce a portfolio with a 1000% return through the 2008 financial crisis over a 6 years period with nothing more than a high school education. Not only did she not attend post secondary, but all her returns were produced from the single laptop of hers on the kitchen table! Here, I’ll share with you some of her investing principles she swears by:
You must go long:
She’s studied the movements of the market for years and have realized that day to day movements are based on the unpredictability of how people react to the market. No logical explanations can explain how the market moves in short run (days). For the long run (months and years), however, market fundamentals take over to reveal the true value of a stock. More people lose by betting on the short run than people who aim for the long term.
Discipline, discipline, discipline:
Never let your emotions dictate your actions. By preventing emotions to get involved, it allows you to think with a clear head. Rash investment decisions are usually made based on emotions. My golden rules of discipline: to stay focused; to not be greedy; to be patient; to observe; to never panic.
Plan and KISS – keep it simple, silly
Keep your investment strategy simple and stick to your plan no matter what. Constantly improve it, tweak it, make it more efficient, but don’t change it. 90% of people fail to make money because either they don’t have a plan or end up not following one. Patience is virtue – devise a simple plan in writing and follow it. Remember, the simpler the mechanics of your plan, the less that can go wrong.
Quick money is not investing
Rome was not built in a day, neither is your wealth. To achieve success, it begins brick by brick, one investment decision at a time. For the same reason why Rome took years and years to become what it was, you cannot expect your portfolio to hit stellar returns in a few days, that is not investing if you are seeking those kinds of returns. Simple does not mean easy! It takes years of discipline and commitment to make it happen – no portfolio is an exception. If you haven’t started yet, start now. Learn at your pace and take baby steps towards your achieving your investment goals.
Mom says, “Your money is in the market for the long run. Once your money is in, pretend it’s gone. Only then can time work its magic to turn your money into a fortune. The more time you give your money, the more money time will give you.”
So there you have it! By applying these simple things you can really create a positive difference for you and your portfolio. As the saying goes: Mom knows best!
The book has already received a 5-star rating from Lisa Brown-Gilbert of Hollywood Book Reviews saying it’s “…an empowering triumph for the average person – especially women who may believe that success with stock market investing is out of reach “ and is chosen as a nominee for Dan Poynter’s 2017 Global eBook Awards for Self-Help Non-Fiction category.
This book will rekindle your hunger for DIY investing and is an ABSOLUTE must-read for everyone wishing to find success in the stock market. After all, Mom knows best!
Pick up your copy of Wall Street Kitchen today at:
About the Author:
Victor Chiu is an active stock and real estate investor. Victor graduated from the University of British Columbia in 2005, where he studied economic geography to obtain his B.A. A contributor to business media, he has been featured in the Harvard Business Review and U.S News & World Report. He is a member of The American Association of Individual Investors, American Economic Association, and a member and frequent contributor to Canadian Money Forum. Victor enjoys camping, playing golf and badminton, and eating almost anything Mom cooks.