Have you ever paused to wonder why Singapore has one of the highest concentration of millionaires in the world? There are so many cash-rich Singaporeans out there that even during the recent downturn,  many of them were seen snapping up private properties like hot cakes, despite the sky-high prices. The reason is simple: many of them made big money from the stock market during previous financial crisis. It may sound odd, but every crisis is an opportunity for retail investors to make big money because that is the time when stock values dropped below their intrinsic values.

Most investors, especially the novice ones, tend to panic sell during stock market crashes because of the crisis in confidence. This is a typical "herd mentality" mistake that most investors tend to make and because of this, they tend to "buy high, sell low", instead of "buy low, sell high". The reason why ......