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March 31st, 2020 12:52 PM
I plan to have a "normal" life starting tomorrow. I do not know how long it will last, but I will try my best(Do not want to write on tomorrow's blog, and it seems like April Fools).

Finished running another 10 miles today. Then started working on the loans. And it was done by 12pm.

I finished Chap 18 of the book: Educated a Memoir. It has three parts. Part I: Her life at Idaho. So it focused on her dad, mom, and brothers, and also her grand parents. Basically her whole life as a Mormon at Idaho. And her home schooling, and her struggles, and how he got admitted at BYU(Brigham Young University). Part II: Her life at BYU. Part III: her life at Cambridge, and her conflicts with her family.

I plan to read 20 pages of this book until it is completed, and 20 pages of : Man's Search for Meaning. Let's start today.

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Posted by Eric Fang on March 31st, 2020 12:52 PMLeave a Comment

If your tenants lost the job or your business affected by the Corona Virus, The government will help you. You can apply for a low rate business loan.

Good afternoon, All.


The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law by President Trump. 


1.  Loans and Grants


There are provisions for grants and loans for business owners and likely landlords in affected areas of the COVID-19 pandemic. 

One program is the SBA Economic Injury Disaster Loans (EIDL).   

-  Loans up to $2 million.

-  Loan terms are 30 years at 3.75% rate (lower rate for 501(c)(3) non-profit organizations).

-  Payments deferred for 12 months.

-  No prepayment penalty.

-  Funds are to be used for working capital needs.

-  From the preliminary information, up to $10,000 may be a grant.

-  For rental losses, the state has to make the application to the federal government.  It is expected all states will apply.

See the following link to see how to apply for free:

Select “Economic Injury” in the application.

These loans will take weeks to process.  Start soon!  

The SBA will likely be overloaded by the applications, which supposedly will be processed on the first-come-first-served basis.  Be prepared.  Submit a complete package.  See the instructions on the website.


2.  Employee Retention Tax Credit (ERTC)

For employers, this will be a payroll tax credit for employee retention. 

This is part of the preliminary details for the ERTC:

*  The credit is refundable (meaning if the credit fully offsets the payroll tax liabilities, the employer will still get a refund for the overage amount of credit).

*  Applicable for all wages paid between March 12, 2020, and before January 1, 2021.

*  Computed on a calendar-quarter basis.

*  Equals 50 percent of qualified wages up to $10,000 paid to each employee or $5,000 in actual credit.

*  Eligibility for the credit begins with the first 2020 calendar quarter in which the employer’s gross receipts declined by greater than 50 percent of the corresponding calendar quarter of the prior year, and ends with the calendar quarter following the calendar quarter in which the gross receipts exceed 80 percent of the corresponding calendar quarter of the prior year.

*  For the purpose of computing the credit, qualified wages paid to an employee during the relevant period may not exceed an amount that would have been paid to such an employee within the preceding 30 days.

*  Any eligible employer may elect out of the credit.

*  NOT available to Federal or state employers.

*  Available to organizations exempt under section 501(c) of the Internal Revenue Code.

*  This credit will NOT be available to any eligible employer that receives a loan under the Small Business Administration program pursuant to section 7(a) of the Small Business Act.

*  Any employer that fails to pay the relevant payroll taxes based on reasonable anticipation of the credit may be relieved of penalties under Section 6656 of the Code.


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Posted by Eric Fang on March 29th, 2020 4:39 PMLeave a Comment

March 29th, 2020 4:07 PM
Just got an email from the lender that they suspended ARM programs,
mainly because of the liquidity issue from the financial markets.
So basically no good rates for ARM for some time. And for the next a few months, we can only do fixed loans.

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Posted by Eric Fang on March 29th, 2020 4:07 PMLeave a Comment

March 29th, 2020 2:20 PM

Just want to share a quote from Ralph Waldo Emerson: “When it is dark enough, you can see the stars.”

The Corona Virus positive cases skyrocketed over night. It was not because it spreads faster, or out of control. It was just because more people were tested. And once more people keep the social distance, everything would be under control. And the whole situation will improve.

I remembered two years ago, the wild fire got worse and worse, and finally I had to order one box of the face mask from Amazon. And when it arrived, the wild fire stopped.

I hope the same thing happens this year. I ordered some masks yesterday, and I wish the Corona Virus would be under control once it arrives. We are in the middle of the tunnel, and if we just keep going forward, we will see the light soon.

Finished another 6 miles today. And I added 3 marathons(Berlin, Chicago, CIM) in my running blog:

Will keep running, and stay healthy and positive.

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Posted by Eric Fang on March 29th, 2020 2:20 PMLeave a Comment

March 28th, 2020 9:08 PM
Another month is almost over. I still did not run a marathon this year. I know it is unusual. I did not run LA Marathon in March. And Mountain to Beach Marathon in May was cancelled. And my first marathon this year will be SF Marathon end of July. And I hope this will not be cancelled. And by the time, Corona Virus should be gone.

I ran almost 6 miles every day, except 10 miles today. The pace was good. At least I can run 3:35 marathons again. I know I will keep running. This is part of me. And part of my life.



LapDist (mi)TimeAvg (min/mi)Max (min/mi)Avg HRMax HRAvg SPMMax SPMGain (ft)Loss (ft)kCal

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Posted by Eric Fang on March 28th, 2020 9:08 PMLeave a Comment

March 28th, 2020 3:56 PM
One client emailed me for the rates this morning, so I replied with the following:
Glad to hear from you.
Let me introduce something about the industry.
First the Fed lower the Fed rate, the mortgage rate lower, then lender got lots of business.
Then Conora Virus came, and the industry has limited bandwidth for the shelter-in-home, 
and to add salt to the wound, the appraisers did not want to go out for the appraisal, and notary persons do not want to sign.
And the lenders decided to increase the rate, so no more applications to their pipeline. They want to clear their locked pipeline first.
So that's why the rate is much higher than the rates 3-4 weeks ago.
And to get matters worse, normally insurance companies and the retirement funds are other sources for the loan. Because of the selloff from the stock market, the industry saw the liquidity problems. There are not enough money  for the loans now. So some programs closed, first non-qm loans(not a lot of people use them), then jumbo loans,
and recently conforming ARM loans.
And lenders will not allow us to lock the rate until the loan is approved.

So what should we proceed from here?

We will start the process, target a rate you would like to have, and if we think that rate is doable, then let's proceed the process. Once the market improves, then we will lock the rate.
Will the market rate improve? Yes, it will. But we will need Fed's help. Yes, Fed said that we would have unlimited QE to bring the rate down.
Let's back to your loan:
what's your loan amount, what's your property value? And what rate you prefer to get for the refinance.
I will reply to your questions after your reply.
Stay safe and healthy. Have a good weekend.

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Posted by Eric Fang on March 28th, 2020 3:56 PMLeave a Comment

This past week, home loan rates ticked up again despite the Fed recently cutting rates by a full point and the 10-year Note remaining just above 1%.


Mortgage backed securities (MBS) are Bonds that price home loan rates. This week, the spread or difference in yield between the 10-year Note and MBS spiked to the highest level in decades. This means that despite the record low yield in Treasuries, home loan rates continue to rise.

This has to do with MBS investors having less of an appetite for MBS, given the uncertainty of the current economic environment. The only way you can attract investors to buy MBS is by increasing the interest rate or yield to the investor. We are seeing this today.

Also, there is a reality that $1T in Bonds will be coming to the Bond market in the near future to pay for the economic stimulus package in order to help the economy during and after this coronavirus crisis. That huge amount of new Bond supply dilutes the Bond market and pressures prices lower and rates higher.

We may not see a more natural interest rate spread between Treasuries and MBS until we get past the worst of the coronavirus and its economic impact. Until then, expect more price and rate volatility.

Bottom line: home loan rates remain very close to the best levels ever, and with the Fed buying MBS for the foreseeable future, we are not expecting home loan rates to go too high any time soon.

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Posted by Eric Fang on March 25th, 2020 11:46 AMLeave a Comment

The Federal Housing Finance Agency authorized the government-sponsored enterprises to lend additional support to the mortgage-backed securities market and temporarily allow some flexibility in lending requirements to address coronavirus-related concerns.

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Posted by Eric Fang on March 23rd, 2020 2:06 PMLeave a Comment

The main reason is the bandwidth. The lenders could not hire more people because of the coronavirus situation. So in order to finish the current pipeline, they decided to increase the rate for some time.

And for some lenders, they recommend to lock for 90 days.

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Posted by Eric Fang on March 17th, 2020 2:36 PMLeave a Comment

March 9th, 2020 1:40 PM
The rate you can get is a good rate.

The lenders are "pocketing" most of the profits and do not want to lower the rate at this moment. Because of the volume, because of their capacity to handle all the loans. And we do not know how many loans in the pool.

Last week, we locked a few 10/1 ARM or 7/1 ARM 2.75%. Those rates are gone now. So in the next a few weeks/months, I might focus on the fixed rates.

And still lock the rate gradually once the loan approved.

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Posted by Eric Fang on March 9th, 2020 1:40 PMLeave a Comment

Stock market is crazy, and the refinance rate is also crazy.  But let me share with you my experience.

So first, the mortgage is only a very small percentage of debt in our portfolio. I understand that the rate 0.125% will mean $50 to $100 depends on the loan size, but it is not that big deal. Just take whatever the chance for the rates we can get, then move, either higher rate or lower rates.

Same for the stock market, we need to think long term. Everytime, when stock market crashes, I saw it as opportunity. It is an opportunity to get good quality stocks.

One friend told me a few years ago. You do not think which stock you will buy if the stock market is down. You will plan all the time, just IF the market crashes, which stocks I would pick up.

Here is my story, I did not have tech stocks in my portfolio. So I decided to get some since last year. So I liquidate one retirement account last year, and started purchasing stocks this year. And I got some today, QQQ and MA(today). I thought MA and V are tech companies.

And story from one of my clients: 1)He only invested in RE market, not stocks. The reason is that he said that he had too many company stocks, and the retirement account also has enough 2)Then he cashed out the money from the house again, for the next one. And he is waiting.

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Posted by Eric Fang on March 6th, 2020 1:28 PMLeave a Comment

March 5th, 2020 8:38 AM
One client said that I am happy with 3.125% (APR 3.125%) for the loan amount 760k. Yeah.

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Posted by Eric Fang on March 5th, 2020 8:38 AMLeave a Comment


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Posted by Eric Fang on March 3rd, 2020 8:41 AMLeave a Comment

I already told some of the clients last a few days. The March rate cut is already priced in the market. We will get lower rates, if the Fed lower the rates further again.

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Posted by Eric Fang on March 3rd, 2020 7:42 AMLeave a Comment

Let's starting with a few stories. Hi, friends, since I did not mention your names, hopefully that would be ok.

Case 1, I closed on cash out refinance Nov of 2019. And we got the rate of 3.625% for 30 yr fixed. And it was a little bit high because of the cash-out loan, I indeed talked to the borrower about the reason. And he told me that we should have plenty opportunities in the stock market. And he needed more funds.
---> The rate is not that important, the opportunity is. I told him last week that he was smart
and he could refi a few months later with lower rates. And he could invest the money now.

Case 2, borrower did a purchase loan last year with 3.5% rate. We talked about options , whether he should go with 15 yr fixed 2.75%, etc. She told me she liked to have 15 yr fixed, but her son is still in college. Then I asked him to think about 10/1 ARM rate of 2.875%(APR 3.43%). But a bad rate for the 500k loan amount.

Case 3. Borrower has 3.25% 30 yr fixed, very good rate. Asked whether he need to do 15 yr fixed 2.75%. I told him that he did not have much of the benefits of tax deduction because of the new tax law. He should think about the big picture, like put more funds in the Roth IRA, 401k, 529 accounts. Or maybe think about the cash-out to use the funds wisely.

Case 4. I have lots of clients over 5-6 houses. Basically we grow together, they purchased lots of properties, and I got the good rates for them. And one client has 10 properties now.
And he cashed out two loans to get more funds, "for more opportunities". The rental refinance cash-out rate of 4% is cheap. For non cash-out 15/1 ARM rental rate lowest rate is 3.5%(APR 3.76). Strongly recommend it for rentals(loan amount around 400k, LTV <=60%).

In one word, refinance can only save us a little money. But if we can handle it wisely, then your life would be different.

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Posted by Eric Fang on February 29th, 2020 1:16 PMLeave a Comment

Please email if you are interested.

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Posted by Eric Fang on February 28th, 2020 8:02 AMLeave a Comment

February 28th, 2020 7:30 AM
I missed a lot of good opportunities before. There are very good companies over there. Anyway, picked up some shares with FB, COST. Will get more if the market down again next week.

Finished trading today. Will work on loans now.

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Posted by Eric Fang on February 28th, 2020 7:30 AMLeave a Comment

February 27th, 2020 10:17 PM
Dow was down $1190.95 today. But Traesury Yield 10 Years Bond^TNX only down -0.011.
Seems like there is not much room to go down.

We need Fed to cut rates in order to get lower rates. But 7/1 ARM rate of 2.875% is not too bad at this moment(APR 3.76%). So if the coronavirus are not contained in the next a few months, Fed might lower the rate 2-3 times this year.

Then let's see whether we can get better rates. But it is not a bad idea to get a good rate at this moment. 

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Posted by Eric Fang on February 27th, 2020 10:17 PMLeave a Comment

February 27th, 2020 2:47 PM

We see the stock crashes all the time. But after sometime, we will see that was our opportunities, and we hated ourselves why we did not buy and hold those equities. The coronavirus will come and go. It is the time to pick up good quality stocks, those stocks you wished to own but too expensive.

Let's back to my main business. Anyway, I still keep running, almost 6 miles everyday, and I will have LA Marathon on March 8, 2010. No fear, I will go and run.

Talked to a few clients about the mortgage.
1)One client asked about ARM rate for his primary home. I suggested him to cash-out the rental to payoff the primary home. This is not about the rate. This is about taxes. Since he already used the standard deductions, the interest payment will not save him any penny. But if he moves the loan to rental property, then those interest payment will be deducted from the rental income(or other way around, the rental income will be deducted, you know what I mean, you will pay less tax).

2)The 0.125% interest difference. This is not a big deal. Some people started a loan application, and found out the rate dropped 0.125%, then worried. Why? It is not necessary. The rate drop trend is your friend, and that means you might get lower rates later on. Just be happy when you get a good rate, and wait for the next opportunity.

3)We talked a lot about opportunities here. Mortgage money are cheap money. You do not have to pay them off fast. If you can, use it to invest somewhere. You can get 5.x% from AT&T. You can get over 4.5% from Wells Fargo. As long as you hold longer enough, and the company survives, then who cares about the short term.

4)Time is your friend. If you think about 10 years or 20 years ago, everything cheap. And if you think 10 or 20 years later, everything would be expensive, just stay and hold the equities, then you would be a winner.

5)And the last, do not trade too much and pay the taxes to Uncle Sam. Just get some good assets, hold long term. I am not an advisor, but I know how to do it. I did not trade stocks for the last 12 years. But my return was good since I do not pay taxes. And I know the market is down now, but it will be back.

Now back to the main business, I have very good 7/1 ARM rate. Check with me for your loan scenarios. Email: 

Posted in:General
Posted by Eric Fang on February 27th, 2020 2:47 PMLeave a Comment

February 25th, 2020 3:40 PM
Under the current industry standard, the cash-out rates will be 0.125% higher for Fannie Mae and Freddie Mac loans. So we will have a problem, can we get the lowest rates for the cash-out? The answer is no for the most of the time. 

And the loan purpose is so different. For the rate & Term, we either want to pay lower monthly payment or payoff the loans faster. For the cash-out, we will get the extra cash out, for the new investment or use it as emergency funds or student education funds etc. 

Posted in:General
Posted by Eric Fang on February 25th, 2020 3:40 PMLeave a Comment

Since I have so many requests these days, I have the explanation below:

Bonds level was at the lowest level for the past 20 years. But we do not have lower rates?
Why? Because we do not have the following two key players this time( compared with 2008-2013):

1)QE(quantity Easing, Fed bought 50B bonds every month during the financial crisis).
2)Lower Fed Rates. Fed lowered the Fed Rates  to 0% to 0.25%. 

But today's Fed Rate is 1.75%.

So that means: We need to have Fed cut the rates in order to get lower rate.
Bonds will not help that much. Lender could not lose money to the loans. 
They have costs to borrower money.

And I think Fed Will lower the rates in the next a few years.

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Posted by Eric Fang on February 25th, 2020 3:37 PMLeave a Comment

February 21st, 2020 1:40 PM

Jeff Bezos, founder, chairman, CEO, and president of Amazon is the richest man in the world. Once in a meeting with Warren Buffett, he asked America’s most prolific investor, your investment thesis is so simple. You’re the second richest guy in the world, and it’s so simple. Why doesn’t everyone just copy you?”

Warren Buffett responded Jeff by saying, “Because nobody wants to get rich slow.”
(The link is here:

I normally do not trade stocks too much. Maybe because I am busy, or because I am not smart enough. But I wanted to share with you one story about NVDA. I purchased xxx shares on 01/31 for $238. And then on 02/11 I sold for $270.13. And I think 13.5% gain for one week is good enough. But guess what? It went to around $310 yesterday.

The problem was not my regret of not making the extra money. The problem was I had to watch the stock market everyday, and "hope" it went back to the level or lower I sold, to prove that I am smart. So actually you can see, that I am not that smart, and nobody is that smart.

I think that's the reason I do not like too much about the individual tech stocks, I have to spend time to watch it all the time. Not like the bank stocks, it went up down only a few cents, and just keep going higher, slowly.

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Posted by Eric Fang on February 21st, 2020 1:40 PMLeave a Comment

February 19th, 2020 1:44 PM
We are always talking about the Fiduciary Duty, we always work for the client, we were told so, we had the training on this , and we should behave and act like that as well.

But sometimes some one did not.

My client cancelled her loan today. It was not because she was not happy with me. It was because of the builder, or the associates of the builder. I do not own that company stock, if I do, I might complain to that company.

The story went like this, my borrower purchased a brand new property from the builder. We started the paper, the loan application, etc. I asked the purchase contract, the escrow contact info from the builder, from the agent.

But we did not get it until one week later.

First, the builder asked the buyer to pay $350 to release the contract to them. Then the person over there tried very hard to ask the buyers to do the loan with the agents the associate knows(or the builder lender). According to the borrower, either the associate or the builder will get extra $5000 from this transaction.

 And the borrower was very upset about it and decided to cancel this transaction and purchase another property from different builder.

The buyer agent asked today why the buyers cancelled the deal. I just ask him one question: Where were you during the purchase process, when the buyers need the help? Where is your Fiduciary Duty? You just wanted to earn the commission and do not do anything, and instead stood with the builder and did not do anything?

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Posted by Eric Fang on February 19th, 2020 1:44 PMLeave a Comment

February 8th, 2020 1:26 PM
Yes, this is for the next year on Jan 17. I put the expected finish time as 3:35:00. I heard it will be humid there. But it will be a different experience. Right?

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Posted by Eric Fang on February 8th, 2020 1:26 PMLeave a Comment

January 29th, 2020 11:11 PM
I originated more than 10million loans in Jan only. So I did not have much to read books. Sometimes, I would rather spend time for books than originate the loans and make money. But still I need to get low rates for my clients.

I still kept running. And so far this year I already ran 211 miles. And this afternoon for the 4 miles temp, the pace is around 7:17 now. Pretty fast. But I still need to keep my weight under control. Still 176-178lbs, I gained most of my weight during my China-India trip, mainly from India.

Purchased the book: Eduated: A Memoir. I head that this is a very good one. Will finish it Feb. And just added to my Book List.

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Posted by Eric Fang on January 29th, 2020 11:11 PMLeave a Comment

The market is still not stable yet. Have to wait until coronavirus under control in China.

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Posted by Eric Fang on January 24th, 2020 9:33 AMLeave a Comment

January 22nd, 2020 7:10 AM
Finished Chapter 20 of "The Second Mountain". And my order "Big Money Thinks Small" arrived yesterday. And I also ordered Viktor Frankl's "Man's Search For Meaning" today. I got at 6 am today, and finished the Chapter 20 of "The Second Mountain" in about 30 minutes. It talked "Religious Commitment". And it quoted Viktor's: Human being's primary motive is not for money or even happiness, but for meaning.

It talked about two stories. One about Viktor who was in Nazi concentration camp, and his through about conversation with his wife made him stronger, even though he did not know whether his wife was alive or not. And another story about a young woman who was about to die, but felt very peacefully. She said that even though she was lonely in her deathbed, she had befriended the only living creature she could see, a chestnut tree just outside her window. And she said that she could talk to the tree, and the tree responded, "I am here, I am here"

And it made me thinking what's the meaning of my life. But indeed I enjoyed the peaceful moment with the books.

And yes, it is another beautiful day, and I will be out for running, another 6 miles today.

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Posted by Eric Fang on January 22nd, 2020 7:10 AMLeave a Comment

January 16th, 2020 11:28 AM
I know WFC was a bad investment. The stock price was back to the same level as 12 months ago. But I still picked some yesterday.

I purchased at $48.12. Then if the dividend stay the same, I can get around 4.25%. For the next 12 months, if the price goes back to $50.12, then I will make 2/48.12=4.15%, another 4.15%, then my total return would be 8.4%, not bad for a stock. And if 5 years later, as long as the dividend is ok, and the stock is $58.12, I can have 8% for the next 5 years.

I know it could be worse, what if the stock goes down. Yes, if the stock is lower, then my dividend income would be higher. Last year , I picked up some AT&T dividend at 8%. And the stock went up 37%, so my total return around 45%. Do I worry about this one? Not at this level. Same as WFC. And still I am very conservative. 6-8% annual return would be good enough. I have quite good income on dividends. I know I am different, very conservative. But do not assume my return was always low. I got 45% last year, still no tech stocks.

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Posted by Eric Fang on January 16th, 2020 11:28 AMLeave a Comment

January 16th, 2020 11:21 AM
If I tell you that the trading cost for the property is more than 5% or 6%, do you agree? Here is my explanation:

If you purchase a property for 500k, and sell it for 700k. Your profits are 200k. And the agent commission is 5% of the sale price, which is 35k. Then for the 200k, you paid 35k, and your cost is 17.5%. Is it right?

And that's why we normally we do not buy/sell the property too often. Better to keep it longer.

Similar thing for trading stocks. If you purchase the stock for $100, then sell for $120. Then purchase for $120, sell $140. And buy $140, sell $160. Your profits are so different from buy at $100 and sell at $160. Every time, we sold the investment, we will pay the tax on the capital gain, either short term or long term. One thing you might argue is that we are much smarter than the market. I can buy $100 then sell at $120. Then buy back at $110, sell at $130. etc. I know I am not that smart. I used to trade MA at $100. I made around 15k, but I lost those trading shares since I purchased at $100, and sold at $120, and when it was $130, I thought the stock was too expensive. Then I could not "brave" enough to buy them back. And MA is $318 today.

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Posted by Eric Fang on January 16th, 2020 11:21 AMLeave a Comment

January 14th, 2020 5:11 PM
You would be lucky if you have a mentor guiding you. For me, I like listen to my friends, and my friends are kind of my mentors.

According to the book, The Second Mountain(Chapter 11, What Mentors Do):
1. Good mentors coach you through the various decisions of life, such as where to go to graduate school or what jobs to take. Good mentors teach you the tacit wisdom embedded in any craft.

2. Mentors will teach you what excellence looks like.

3. Mentors also teach how to deal with error.

4. Mentors teach how to embrace the struggle -- that the struggle is the good part.

5. The last thing a mentor does, of course, is send you out into the world and, in some sense, cut you off.

What do you think, my friends? Do you have a mentor in your life? I heard someone felt hurt when the mentor sent you out in the world. But this is very necessary for you to grow, right?

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Posted by Eric Fang on January 14th, 2020 5:11 PMLeave a Comment



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