24 Mar

Cutting loose from the sunk cost fallacy

Have you ever heard of sunk cost fallacy? I haven’t till a few years ago when a lecturer on Economical behaviour was explaining how exactly so many people got hooked to Farmville. At one point apparently, there were 84 million Facebook users playing that game. As it seems our human brain has few biases which were formed to aid our survival as species, one of them is the sunk costs. Simply put – we tend to commit to unfavourable situations because we have made an investment – money, time or emotions (sometimes all 3 of them)

Read More
21 Mar

A new chapter – even with a baby step

My first experience with forex trading was in 2006 and the very sad and challenging 2007. I remember the elation with which we entered daytrading and how after the 4th month we felt like we have figured life out and all was pink and RICH :)))
Little did we know, that we were yet to experience a world crisis leading to a personal crisis in our trading accounts. Although we followed the rules trading with only 10% of our balance, that was not enough to keep our positions open for very long time. Our pink lenses were shattered in pieces in a very short period of time and we decided to revert to traditional ways of earning our money. No, we were not employed to chisel stones by an Egyptian pharaohs but conventional job felt like sweat and tears for a while. 

 I would say that although money was lost in the process a valuable self knowledge was gained. 

Insight #1. Know your weaknesses

Daytrading is not for everyone – my risk tolerance is too high and it would be more beneficial for me to concentrate on building long term portfolio. People with high risk tolerance can be very successful but can fall from very high. High risk tolerance and daytriding are not good for people who have a history of heart and nervous system health issues in their family, which was my case. The adrenalin rush and my cortisol levels are too high to handle such a lifestyle in a healthy way. If I was to continue and the crisis didn’t happen, the consequences would have been bad for my overall quality of life, although very lucrative.

Insight #2. Turn the weakness into strength

High risk tolerance can be of benefit too. There are different ways to fulfil the need for higher risk. One of them is to invest in innovative platforms like p2p lending. The Fintech sector is a relatively new sector. Although many investors have already few years of experience with it under the belt, we haven’t experienced a big hit on it as 2007 was for more traditional investment platforms. So I consider my decision to grow my dough in a fintech manner a good way to quench my high risk thirst. Within the platforms, my portfolios are mid risk and with buy back guaranty. Automatic investment is a must, the daily report is nothing more than reassurance that things are on track – no big drama there. 

And the baby step in a new (old) direction.

In my last article I mentioned that I signed a contract with a trading broker, to use their platform to purchase shares. Now for many of you there is nothing of high risk in that.
For me it was a symbolic step – on many levels. One of them – overcoming fear after crashing once, although I never traded stocks, I traded currencies at the past.

I also wanted to buy my first stocks either on 14th of February or 8th of March, as a symbol of love and respect to myself and my financial wellbeing in my future. Did not manage on those two days to purchase my first stocks but I decided that the whole month of March is the month of “women who create history”. Well in my case, I created just a small step in my own history – 18 of March was the day when I bought my first stock shares in my life.

The amount is laughable, but is my own start. According to my calculations, in order to make the minimum fee of 1,5 eur feasible one needs to invest roughly 255 eur. However I was experimenting with different account top up methods (you can see them here), and 10 eurs were gathering dust in my account, without working for me. I figured that if I use them to buy shares, would be way better as the share value would go up eventually. Said and done – I own 6 shares of Bulgarian IT company, who’s focus is Internet of things. I did my happy dance, as it was a step for me on so many levels:

  • Overcoming fear of failure
  • Leading by example as a woman making an investment decision during the Women’s month
  • Choosing a young IT company with innovative thinking, with a concept in coherence with me

All those baby steps in one (all that with the monetary value of an English breakfast 🙂

Happy growing of your dough, dear ones – I managed to sprinkle a bit more yummy ingredients this month!

18 Mar



a book
by Ted Klontz  (Author), Brad Klontz  (Author)

A word of warning – The Financial Wisdom of Ebeneezer Scrooge might make you cry a bit. I would not like to turn this blog into a soap opera, with a lot of sobbing and dramatic stories. That being said, there are certain moments when you meet your own ghosts, to remind you why you started this journey in the first place.

Read More
15 Mar

Two more checks on the new year’s resolution list

When I started this blog, I wrote my new year’s resolution list, by sharing it publicly I keep myself accountable for achieving what I have planned. And while I was away on a holiday I actually achieved two more points on the list. Last month I achieved the 30% portfolio growth which was planned for January -July, as the upcomming months are months of day job re planning and I want to have my focus there.

I had a beautiful extended weekend in my home country Bulgaria last week. You can check “the benefit of changing the perspective” article here. There I share how a short weekend break can be a balm for mind soul and body and give a boost to the energy level and free some mental capacity for pressing decisions and changes. 

Read More
10 Mar

The benefit of changing the perspective

seeing clearly can happen only when you refocus

 I have shared few times that due to more urgent financial goals I postponed a lot of travelling and was mainly concentrated on work for the last 2 years. Looking back, I am really happy I took that decision but recently I discovered that recallibration is as important as dedication. 

There was an opportunity for a cheap flight to the capital city of Bulgaria. I decided that it will be a great opportunity to change the atmosphere and do something which brings me joy- I love cultural tourism and nature. We had one day planned for culture, one day for nature and one day for portfolio, blog, finances. I love it when there is a mix of “business and pleasure” in my trips and this trip has the perfect balance.

Read More
07 Mar

Do women invest?

I know this question would sound rather silly in this century, when a lot of women are successful entrepreneurs, but I do believe that with regards investments there is still a gap. And celebrating 8th of March as Women’s day, I ponder around the topic – women and investments. 
We have many examples of successful girls when it comes to budgeting, debt  repayment and household income. But very few I hear go the extra mile and make  their hard earned money work for them.

Read More
From Flaw To Flow Copyright 2018