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I just got back from one month of travelling in Eastern Europe, and I’m glad to see some progress on the trade war resolution.

The US and China finally agreed on Phase One of the trade deal on Friday (Dec 13), including immediate cuts on import tariffs.

This is good news for Trump who is now battling impeachment, and with his 2020 reelection campaign coming up, he needs to give voters some small wins.

If this deal was not reached, a new round of tariffs on consumer electronics like cell phones and computers would have kicked in on Sunday.

As a sweetener, the US will also slash in half the 15% tariffs imposed on US$120 billion of Chinese goods that were imposed on Sep 1 previously.

However, existing tariffs of 25% on US$250 billion of Chinese imports would stay in place pending further negotiations on a second phase deal.

In return, China is committing to increasing purchases in four sectors: Agriculture, manufacturing, energy, and services.

In a sign that tensions remain high, Foreign Minister Wang Yi accused the US of “suppressing” China in a number of fields, including the economy, trade and technology and had “seriously damaged the foundation of hard-earned trust between China and the US.”

The US also angered Beijing by backing Hong Kong’s pro-democracy movement and criticising China’s mass detention of mostly Muslim minorities in the northwest region of Xinjiang.

Looking at the chart of the S&P 500, stocks have continued to climb even during the trade war, which shows that the uptrend is still very strong.

Now that we are at the top of the trend channel, we might see some correction to the middle or bottom of the channel.

If there are no major political surprises or escalation of the trade war, then we might even see a Christmas rally before the year end.

Overall, I would be looking to invest in high growth US stocks.

A big thanks to Societe Generale for dropping by my house to do the interview! 😀

Always glad to share my trading strategies!

In October, I have been invited to speak at the “Traders Fair and Gala Night” in Singapore, and I will be sharing some of the new initiatives that I have been working on.

  • Date: 26 October 2018
  • Venue: Suntec Convention Centre
  • Speaking slot: Seminar Room 2, 11:40am to 12:20pm
  • Topic: Trading Strategies You Can Apply With 15 Minutes a Day

About the Event

Traders Fair & Gala Night Singapore organised by FINEXPO is expected to welcome over 50 speakers and 5000 attendees from all over the world, including exhibitor booths, lounges, bars, the Speaker Hall and Workshop rooms. This event will include not only large exhibition, panels and diversity of discussions, but also entertaining magic shows, lucky draws, fantastic prizes, live performances and huge Awards and Gala Night party.

Website: https://singapore.tradersfair.com/

This is the dream of many millennials, to build a million-dollar portfolio as soon as possible, so that they can live off the passive income, and focus on pursuing their dreams, interests or hobbies, without having to worry about money any more.

When I was in my 20s, that was my dream as well, which was why I read over 2000 books ranging from investing, trading, psychology, motivation, philosophy, biographies, businesses, digital marketing, finance, accounting, etc. And that was when I realised that most of wealth creation boiled down to 3 simple core principles.

 

1) Multiple sources of Cashflow

The first thing you need to get started is a solid base capital, so at the start if you do not have much capital, almost all your time and resources should be focused on generating as much cashflow as possible to build up your ammunition.

If you have a well paying job, then you can start saving aggressively, but to speed up the process, most people will seek to generate multiple sources of income or cashflow. Some examples include working a side job, starting an online business, etc.

For me, I decided to use forex trading, because it did not require much capital to start, and also because I did not have much spare time, and could only afford to spend 15-30 minutes a day. Now, it provides me a steady monthly cashflow, which allowed me to move on to step 2.

 

2) Timing your portfolio purchases

Once you have sufficient capital and consistent cashflow, the next step is to start building your long-term portfolio. Start by having a rough idea oh what your ideal portfolio is, and what kind of risk/return profile you are looking for. Look out for assets that have a good chance of capital appreciation, as well as passive returns in the form of dividends or rental yield. Over time, I tend to favour having more “passive income” type of investments.

Do not be in a hurry to buy everything at once. Watch and study the market cycles, and aim to buy stuff only when they are cheap or “undervalued”. This can be done easily by looking at the charts of any product over the past 50-100 years of history. There is no need to spend hours reading financial reports or analyst reports. Remember, our goal is to get the most out of our limited time.

 

3) Re-invest the passive income

As your portfolio grows, and you continue to add to it via your monthly cashflow contributions, the real kicker is when the effect of compounding kicks in.

The best way to do this is to also re-invest the passive income which you get from the portfolio itself, creating a snowball effect which will literally grow your portfolio exponentially.

Once you have assembled your ideal portfolio, all you need to do is to check on it once every 3 months or so, and do some rebalancing. In the meantime, you can pretty much enjoy the fruits of your labour, and focus on living your life instead of having to worry about money.

For me, this means travelling around the world (50+ countries to date!), and sharing my knowledge to inspire and help others do the same.

Now, are you ready to start building your own portfolio?

Last month, I went for a short trip to the Philippines, firstly to Manila as an invited guest speaker at the Traders Fair Expo, before making my way down to Pico De Loro for some sun and beach. 😀

Currently, I am on a 1-month road trip in the US, and I will be sharing more insights and photos once I am back!

Along the way, I will be sharing some nuggets of wisdom on trading and investing on FB: https://www.facebook.com/synapsetrading/

For those who love adventure and real-time updates, do follow me on Instagram and Facebook as well.
My personal FB: https://www.facebook.com/iamrecneps
My Instagram: https://www.instagram.com/iamrecneps/

 

Here are some photos from my last trip:

Here is the full photo album for this trip: https://www.facebook.com/iamrecneps/media_set?set=a.10156319709623430.1073741850.530303429&type=3

Good luck, and something really exciting is brewing! 😀

 

P.S. For my full travel photo log and list of countries travelled, please visit: https://synapsetrading.com/travel-log/