Travelling on a holiday is an event that almost everyone will be looking forward to and with information readily available at our fingertips, more people are opting for a self-planned holiday than heading down to a tour agency to sign up on a package tour.
While I am planning for my upcoming trip, I was going through the various hotel booking websites like Agoda to find the hotels that has the best bargains.
What Can We Learn From Holiday Planning
Although booking hotel for your next holiday may seem a very normal thing to most of us, this very trivial act of booking a hotel have got lessons for us to learn that can be applied to our investments journey.
Knowing What to Buy
When you are looking for a hotel for your next hotel, the first thing you would do will be to search around the area where you want to visit for hotels where you can stay in. Similarly for investment, knowing what to invest should be the first thing that you should know. More often than not, an investor does not know what they are buying and falls into the trap of making the wrong investment.
Knowing what to buy includes knowing what kind of investments. Many kinds of investment instruments exists, for example like equities, bonds and forex. Understanding the investment instrument before putting your money into it will reduce the risk of losing your hard-earned money.
Looking for the Best Bargain
While you have zoomed in to your next destination for your next holiday, what I would usually do is to visit my favorite hotel booking website, Agoda. With over 500,000 hotels worldwide for booking, all I need to do is to key in the destination that I would like to visit and they will return me with a list of hotels in the area and the cost of booking with them. Of course, I would not stop there after booking my hotel with them. I will continue to monitor the price of the hotel and at times when there are special discounts, I will not hesitate to re-book or request for them to honor their “Best Price Guarantee” policy.
Unlike hotel bookings, investors have the option to invest more (you cannot be booking extra rooms in this case) when the stock are selling at a discount. However, more often than not, investors often flee away in fear, during a recession, when stocks are selling at a discount.
Research, Research and Research
I had once stayed in a hotel during one of my trips and the awful experience struck is so bad that I think it will “haunt” me for life. Nope, the hotel was not haunted like some of you may be thinking. The hotel was badly maintained with the furniture stained with God-knows-what and while in the room, my body just itch all over.
Had only stayed there because I thought I have gotten the best bargain as it was the cheapest hotel in the area. Only thing that I had totally forgotten to do was to do research on the hotel by reading the reviews. Ever since, before I book any hotel, one of the things that I MUST do was to look through the reviews of the hotel.
Many of the novice investors just listen to hot tips given by their friends and relatives and investing in the stocks only to realise that they are at the mercy of the stock price. Just like doing a research on the hotels, research on the stocks are equally important. Research materials may be in the form of reading the financial section of the papers, understanding the business the company is in through your daily lifestyle and of course, hot tips given by friends and relatives.
The Bottom Line
Investing is not as difficult as what most people perceive it to be. Many investors fail only because they make their investment decisions blindly by following what others tell them. By understanding the investment instrument, looking the best bargain and doing own research, investment is actually not very hard.
Hope that what I have learnt in holiday planning can help you with your investment journey.