Toto Hongbao Jackpot- The game of probability 

It has been an interesting 1-2weeks where almost everyone on the street talked about the $13.9m (USD$9.9m) toto grand prize. Most of my colleagues and friends asked if I have bought the ‘ticket to financial freedom’. Continue reading “Toto Hongbao Jackpot- The game of probability “

Trading/investing – a game of probability?

When I mention trading is a game of probability, no one seems to disagree. However when I say investment is also a game of probability, not many seems to be convinced. Dividend, growth and value investors may speak with conviction that they are buying into a business, not exchanging papers and they are not speculating for a quick bucks etc. yup that’s true and while I do agree that buying a wonderful business at fair price is a good investment mantra, I still look at it from a different angle – a game of probability. Do allow me to explain.

Continue reading “Trading/investing – a game of probability?”

Insurance is important to us, how about insurance for our stocks/portfolio?

Buying options to protect a stock is like buying insurance to protect ourselves. Options is very similar to insurance. When we buy an options, we are acting as the insurance policy owner. We pay premium to the insurance company Continue reading “Insurance is important to us, how about insurance for our stocks/portfolio?”