I am simply an average-Joe to finance and investment

  Monday, January, 23rd marked the official start of the Chinese New Year.

 Dragon entered into 2012 Chinese New Year.

 I was eating lo mein.

I was told that long noodles represents for longevity.

I did not know that till now.

 I also took oranges as they symbolize luck and wealth according to the predictions for 2012.

 I was also reading the CLSA Asia-Pacific Markets annual Feng Shui Index.

Invoking a Chinese proverb that says you can never see a dragon’s head and tail at the same time the Index hinted that 2012 will have “very fat moneymaking opportunities (but) the time frame is very short, so expect most of the gains to be over by December.”

 I was also told that displaying a bowl or 8 or 9 oranges on your kitchen counter represent as a symbol of prosperity at the start of the Chinese New year.

I was also told to treat myself to have a new red wallet for Chinese New year. Why. The reason is Red represents the Feng Shui fire element that will balance the water in this Dragon Year and help protect your finances.

 Those are all customs and beliefs and represent collective wisdom of thoughts followed over the years.

At the same time I have certain bottom-line thoughts on simple management of one’s savings and investments.

That is what I wish to share on this Chinese New year day of 2012.

Follow me.

My management school taught me only the text book definition of finance and investment.

 On the ground level I have noticed many of my friends practically learnt and burnt what it is.

They define investment as the balance between greed and fear.

If it gives you peaceful sleep it is ok.

If it churns your stomach then you’re in for confusion or trouble.

I have not seen what they are.

They are simply psychological.

Then where is the sweet or sour spot.

Some say it is there in your risk tolerance.

 I cannot ask any one that show me or find me one. 

 I am simply an average-Joe.

Most of the time an average-Joe like me would face an outcome that he would not otherwise expect especially with his finances and investments.  Because mostly  we try to follow the herd!

Then what one can do to avoid the decision dilemma?

You ask yourself the depth of your risk taking ability before either to buy shares, junk bonds, invest in commodities or in options–futures or buy homes on monthly installments. Otherwise don’t attempt any investment ventures with half baked mind and willingness.

What I feel is beyond access to resources your personality plays a vital part in the decision making chain both in the short and in the long run.

 How do you trust your instincts that normally lead you to the decision taking point?

Individual’s funds availability, age cycle and need cycle may dictate what type of investment risks he or she should make.

No one would guide you on this.

 Any investment and financial decision making at a personal level is a different ball game.

I suggest avoiding being herd or overambitious to reserve a space in Forbes ‘richest persons’ list or to become in a short time titans of finance and wealth.

Any one prior to taking your investment decisions may read at least once about

Hetty Green: The Witch of Wall Street.

Hetty Green was the richest woman of her time and possibly the first value investor.