A wise investor once said that "Chart-reading was like looking through a crystal ball for an investor".
Before anyone starts calling bluff or making noise, let me just put a disclaimer right now that NO ONE can truly predict the future.
But chart-reading is one of the most essential skills to have as an investor. To understand why this is so important and valuable, you need to realise that most savvy investors (businessmen, fund managers, institutional property investors, developers...etc) use charts to a large degree in their decision making.
Some people view charts as overly technical or "too cheem" (hokkien for confusing), a chart is nothing more than a visual representation of changes in the market. Actually, there is nothing intimidating or mysterious about charts, and there are many benefits you can gain from learning chart-reading.
BENEFITS OF CHART-READING
1. Charts tell you a Story
The lines and numbers on a chart are more than just fancy visuals, they actually give the reader a historical story of previous events. Given to a trained and experienced investor, charts give valuable insights into the past and allows the investor to profit from that knowledge by making better decisions.
You might be thinking how is this possible?
Simple. It allows the investor to identify trends. What is a trend?
"The trend is the general direction of a market, that occurs in a cyclical pattern over time". Basically its patterns in market movement that can be observed through charts. And it allows us to predict events that may occur in the future.
For example, if over the past 10 years we observed that National Day is usually celebrated on 9 August, we can predict with reasonable certainty that next year, National Day will also be celebrated on 9 August!
Supposedly, you have noticed that over the past 5 years in Singapore, June is usually the "raining season". With a fair amount of accuracy, you can reasonably predict that in June next year, it will most likely also be the "raining season"!
2. Identifying Opportunity
If you have ever seen a chart before, you'll notice that it usually moves up and down over a period of time. However, just as stated previously, a trained investor can identify a pattern or trend.
And if he truly understands the trend, he will be able to identify opportunities in the market to buy,sell or rent. He will be able to mark out properties in the market that are undervalued, or enter the property market during a market low. (Just to name some of the opportunities)
But these are all easier said than done, it takes knowledge and ton of experience to be accurate in your predictions.
Why? Because trends are not only classified by their direction, but also by the time duration as the trend is taking place. There are long-term, short-term and intermediate trends that coexist and may have the same, as well as the opposite directions.
3. Making Calculated Plans
Now that you are equipped with all the data and information from the charts, you can implement this knowledge towards your plans. Depending on your risk profile, current finances, objective...etc, a chart used correctly will allow you to create a solid plan.
In the end, all these data and information you have collected from chart-reading is USELESS, unless you put them into ACTION!
Most people know bits and pieces of information, and make rough plans. Some don't even care.....but its NORMAL!
That is also why most people's finances are......NORMAL.
But the few that do care about their own future and future of their loved ones, these are the people that take action and make plans, or seek help from others to make plans. And that's why only a few people in the world are actually financially free.
So what are you waiting for? START TAKING RESPONSIBILITY OF YOUR LIVES AND TAKE ACTION!
We are opening up invitations to the limited few who are willing and eager to make a change for the lives of their loved ones. People who are keen to grow their wealth through safe and systematic strategies.
Contact us today at TeoDuoProperty, and lets explore together the options and possibilities for you and your family!
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