D+192

Friday night, my sister sat down with me in my room at around midnight. She wanted to have a talk with me. It is regarding her recent job with LFI. Yes, it's the networking MLM company based in Aljunied. My sister had joined the company upon her graduation along with her friends i believe.

So the first thing i asked her was: "Do you know what is Passive Income?" whereby she replied: "Yes, It's about having money even when you don't work." I guess everybody who joins these companies ought to know that at least.

So, the next thing i asked was, "What do you know about Financial Freedom?" These time, she gave me an answer that was a less convincing one. She said: "Financial freedom is being able to do what you want to do."

Although i got to say that she got it partly correct, it is this danger of knowing part of the 'whole' picture that many people had tried and failed in the networking system without even learning the lessons of the outcome. I always believe that be it a success or failure, there is a lesson to be learn behind every event.

We had a moment of silence before i continued speaking. I told her, I actually had been in Networking companies in the past and the reason i left was because i didn't find this 'vehicle' to success suitable to me. or rather, I wasn't ready for it yet. My mindset then was to enjoy the benefits that many 'seniors' had preached about, The car achievers, the freedom of doing whatever you want. But least did i know that my thinking was too naive. I related my experiences of the last to my sister. She agreed.

From my experience, I warned her about setting expectations to financial success. And i was very frank to her in telling her that this company she's working at have a stint name in networking companies. Mainly due to the techniques the networkers used in getting friends.

I wouldn't blame most of these networking companies that telling potential 'recruits' that they could achieve financial freedom in as quickly as 2-3 years. Many had believed based on that. And many had set expectations of financial freedom in 2-3 years. And Many had failed miserably.

So, i gave my sister some suggestions. I told her that the reason many people in the networking line had bad reputation is because not everybody understand the true meaning of networking. They didn't even care whether or not the relatives they're trying to sell their product to, really needs this item. All they think about was closing the deal.

I told my sister, If you want to continue working in this field. You'll have to learn not only the selling techniques, but more importantly, is to train your mind in being able to see the true benefits of networking.

We had a long chat of almost 90 minutes and i ended the night by giving her the very book that changed my life. It's called: "Secrets of the Millionaire mind by T. Harv Eker" I told her to read this book, and after reading it, to tell me what she had learn. On top of that, I have offered my support in telling her to go all out and try this field. If she does have any problem, she can fall back and seek advice from me. That's what being a brother is all about. I'll be here if you need me.

So that's my first ever 'formal' conversation with my sister above her future. And I hope it doesn't stopped at that. I wouldn't be happy until my sister had understand the true meaning of financial freedom and passive income. For the mindset is the only 'vehicle' that can only to taught and trained by the individual herself.

Moving on, I shall share my view on what happened on Friday night in the US stock market.



Before i continue, I guess i should explain that A red bar represents that the trading day had a negative closing results as compared to the opening figure. For example, the opening Dow Jones Index (DJI) on 28th May is 10258 points and the closing figure is 10095.9, we see a closing figure lesser that the opening figure and as such, we concluded that there is a loss and represent it as a RED bar. Vice verse, The BLUE bar represents the closing figure higher than the opening figures and thus representing a gain.

As you can see, I've highlighted the activity pattern for the whole month of May. It is a repeated pattern of cycle. There is typical a weak rebound for every 2 to 3 days of sell-down. And the last trading day was a sell-down over the news that Spain had been downgraded for it's credit ratings.

So, If you had read my previous post, I would classify the Spain news as a negative one which one might say that it could affects the STI come Monday. Again, there have been signs and reports of the recovery/rebounding activity in recent times and whether this Spain news is a knee jerking reaction of sell-down remains to be known.

Let's hope that this market continue to rebound and not forget to catch the trend if the 2nd peak formed and with momentum pushing towards it. Of course, If you are adding positions, I advised in going in with a small amount of capital in case you need to cut loss.

There's this saying in the T3b forum: "Never catch a falling knife" which means that if you want to enter the market which is still volatile, you are not recommended to enter with your full force of capital less you catch the "falling knife" of a sudden downtrend and suffer a enormous cut loss.

With that, I wish everybody happy trading and a positive gain in Monday's opening STI.