Ep46: Zia Islam – Don’t Let Emotions Cloud Your Investing Decisions

Mr. M. Zia Islam is the Coordinator, External Relations, School of Management, Asian Institute of Technology Thailand. AIT School of Management is ranked among top 250 B-Schools in the World under QS World Rankings by Subjects 2018 under “Business & Management.” He holds a Bachelor of Science in Computing & Information Systems from London Metropolitan University. In his free time, he enjoys reading books with a cup of hot latte.  He lives with his wife in Bangkok for eight years now.

In today’s episode, Zia shares his social trading story, his loss and the lessons he learned from the experience. Know why it is important not to let emotions cloud your investment decision to avoid making irrational investment choices.

 

“The lessons I got are – you cannot be an emotional eater and go to the masters.  Learn something from the technical expert, then make decisions more logical and most practical.”

M. Zia Islam

Topics Covered:

01:02 – Andrew gives background information from our guest

02:25 – Zia narrates how he was introduced in social trading online and how it ended as his worst investment experience

07:01 – How his social trading online experience made him realize two important things

08:05 – Andrew shares his golden nuggets of wisdom in investing

11:07 – Zia’s final advice: “Go and find the masters.  Start to find a technical expert who can teach you first. Learn first before you go for action. That’s why people lose money. But when you learn things, and then you lose, it makes sense.  Just don’t go for any emotional investment and follow others without going the things what you’re doing.

 

Main Takeaways:

Lesson 1: “The investors worst enemy is not the stock market but the emotions.”– M. Zia Islam

Lesson 2: “It’s the human nature to be emotional. You said human nature to be, but if it’s an investment return, it cannot be an emotional investment.”– M. Zia Islam

Lesson 3: “The first thing I always tell people is don’t invest with people who call you.”– Andrew Stotz

Lesson 4: “Every single trading strategy you ever do in your whole life is yours. You may be following somebody, but ultimately, it’s yours and your responsibility to put in the risk management systems and all of those things. You can’t just follow because the problem about following is everybody will invite you in, very rarely will they tell you when to exit.”– Andrew Stotz

Lesson 5: “There are many people who are the beginner outside, their tracking biased and they think maybe it will bring huge income.  But you have to be more practical. Do your homework before you fell for it.”– M. Zia Islam

Lesson 6: “I would generally tell people to stay away from online trading platforms, particularly related to commodities and currencies.  One of the reasons is because in currencies, first of all, it’s the most massive liquid market in the world and that means that the players that are in it are the biggest in the world and that’s who you’re trading against.”– Andrew Stotz

Lesson 7: “You’re trading against central banks that are really run by governments and politicians and you never really know what direction they’re going to go. So, if you don’t understand the risk management stuff, you could get wiped out very easily. I would say be very cautious about those. And then, of course, there’s plenty of those that are just plain scam.”– Andrew Stotz

 

Resources:

Connect with M. Zia Islam:

Connect with Andrew Stotz:

 

About the author, Andrew

Dr. Andrew Stotz, CFA is the CEO of A. Stotz Investment Research, a company that provides institutional and high net worth investors with ready-to-invest stock portfolios that aim to beat the benchmark through superior stock selection.

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