A few years ago, David Novac was presenting at an investing conference in Texas when he had the opportunity to ask Robert Prechter (Elliott Wave Principle) “What would you tell the average investor?”
Robert replied, “Stop being average.”
Very good advice. Of course it prompts the question: how does one stop being average?
If you want to stand out from the crowd of average investors, there are some key things you need to have:
1. Wise Investing Principles
From these principles, you need to develop clear, simple investing rules and stick to them.
Before you play any game, you must understand the rules of how the game is played.
2. Sound Risk and Money Management
You won’t last long without sound risk and money management rules.
This is very important because it keeps your emotions in check.
If you’ve put too much money into an investment your judgement will become clouded and your emotions will run high.
3. Timing is everything
Being able to see trends and know when a trend is changing will help you buy at optimal times.
Average investors often just follow the herd without thinking for themselves.
You want to be ahead of the herd so you don’t get trampled when they change direction.
4. How to identify Value
To avoid paying too much, you need to be able to recognise good value.
If you get the right financial and investing recipes, the results can be outstanding.
Outstanding Pumpkin Soup
• 2 brown onion, diced
• 1 tsp sambal olek (minced chilli)
• 2 tsp coconut oil
• 1 tsp ginger powder
• 1 tsp turmeric pwdr
• 4 kaffir lime leaves, optional
• 1 butternut pumpkin – deseed, chop into 1.5 cm slices and bake with skin on
• 4 garlic cloves, diced
• 2 tbsp fish sauce
• 1 litre vegetable (or chicken) stock – enough to almost cover pumpkin
• 1 zest fresh lime
• 1 small can of coconut cream
• 2 tbsp lime juice
• Coriander leaves
Saute onion, garlic, chilli, coriander stalks, ginger, turmeric and kaffir lime leaves in coconut oil, on medium heat, for 3–4 minutes. Add cooked pumpkin with skin, lime zest, fish sauce and vegetable stock and bring to boil. Simmer for 15 minutes until heated through. Puree soup in pot (with Bamix stick) until smooth, then add coconut cream and lime juice. Zap a couple more times to blend. Serve with a drizzle of coconut cream and fresh coriander leaves on top.