Author Topic: So how do I get started?  (Read 12959 times)

Offline James Smith

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So how do I get started?
« on: November 11, 2005, 08:53:55 PM »
Hello everyone,

I am new to this forum and I am looking for advice. I have my life savings of RM50K and I want to invest this in the stock market.

What's the best way to get started?

Thank you.

Offline julez.lim

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Re: So how do I get started?
« Reply #1 on: November 14, 2005, 08:15:57 AM »
It's good that you are considering to invest your cash. But what I advice is to do some reading 1st before you proceed. Stocks goes up and goes down. It's better to read some books about ppl's experience in stocks. Alternatively, u can talk to experienced ppl too. THis is so that you won't make the same mistake as u learnt when u invest your $$ in stocks

A few things to add on here...
I would highly recommend reading daily papers so that you can get a good knowledge on how M'sia is progressing and changing. I will try to update recommended books and links to website as soon as I find time. Till then...Bye
« Last Edit: November 15, 2005, 08:07:11 AM by julez.lim »

Offline Frank Jones

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Re: So how do I get started?
« Reply #2 on: December 14, 2005, 05:17:27 PM »
But what I advice is to do some reading 1st before you proceed. Stocks goes up and goes down. It's better to read some books about ppl's experience in stocks.

Can anyone recommand any books?

Offline julez.lim

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Re: So how do I get started?
« Reply #3 on: December 20, 2005, 09:17:18 AM »
But what I advice is to do some reading 1st before you proceed. Stocks goes up and goes down. It's better to read some books about ppl's experience in stocks.

Can anyone recommand any books?

Personally, I started off reading books by Robert Kiyosaki's Rich Dad Poor Dad. Lately, I also notice a Malaysian Magazine called Personal Money.
Rich Dad Poor Dad will give you an awareness while Personal Money teaches you the basics concepts and information about managing your money.

Offline booffett

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Re: So how do I get started?
« Reply #4 on: January 25, 2006, 10:47:49 PM »
no offence, but if u follow personal money...

very soon, ur RM50k may be left RM25k

i guess, may be still not bad... since if u charge into the stock market blindly...

RM50k may be left RM5k.


in my newbie opinion, personal money is just...

a mass media for us to see how it fool the rest of the investing public.





==================================================
Emotion – it is one thing to know what to do. It is another thing to do what you know.

Emotion is the most essential factor in playing the market.

It doesn’t matter how high your IQ might be or what status you might have attained in some other profession, the market reacts indifferently to participants and doesn’t really care who you might be as an individual. The key to successful trading is EQ.

Markets are never wrong, opinions often are, because opinions often affected by human emotions. Opinions are actually no value at all unless the market acts in accordance to the opinion.

A successful trader must be able to separate ourselves from our emotion.

It is the emotions that always get in the way of human intelligence.

I have met the enemy, it is me, myself. They come in the form of greed, hope, ignorance and fear. This is why you can’t tell if your judgment is right until you put your money on the line.

It pays to be able to change your views and not become emotionally embedded in one direction, bullish or bearish.

In fact, every speculator must analyze his own emotions to find out just what stress level he can endure. Learn your own emotional limits before attempting to speculate.

You need to access your strengths and weakness, and this requires knowing yourself and your limitations.

In order to control emotion, all successful traders created sound trading rules that worked well for them. By following strict rules, they were able to control the emotion part of trading that can overcome and cause rather normal intelligent people to act in ways that they otherwise would not act if they did not have their hard earn money on the line.

The taps is always correct, there is no place in speculating for hoping, for guessing, for fear, for greed, for emotion. Always seek harmony with the tape.

The tap tells the truth, but often there is a lie buried in the human interpretation.

==================================================
The problem with cut loss is, easy to say hard to do; the problem with let the profit run is, most often, the profit only run 100m, not the 400m as you expected.

http://www.booffett.~.com/

Offline julez.lim

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Re: So how do I get started?
« Reply #5 on: January 27, 2006, 10:33:06 AM »
Charging into market blindly is definitely a NO NO from me. This is because one is taking on uninformed risk. And depending on luck, one may win or lose badly. I do think there's higher probability at losing $$ in this scenario rather than earning...

I do agree with you that emotions is a need to understand and control. Through stock investing, I understood myself more and discovered more strengths & weaknesses about me. Hence, I gain not only $$ but also knowing myself, which money can't buy!

I think, once you know yourself and able to control your emotions, you are very much there already...

To others, controlling emotions is not easy from my experience. When you buy, you may buy because you are greedy and too rush. When you sell, you may sell because you are fearful...

Anyone out there have any comments or personal experiences to combat this?

Offline booffett

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Re: So how do I get started?
« Reply #6 on: January 27, 2006, 02:52:13 PM »
Charging into market blindly is definitely a NO NO from me. This is because one is taking on uninformed risk. And depending on luck, one may win or lose badly. I do think there's higher probability at losing $$ in this scenario rather than earning...

I do agree with you that emotions is a need to understand and control. Through stock investing, I understood myself more and discovered more strengths & weaknesses about me. Hence, I gain not only $$ but also knowing myself, which money can't buy!

I think, once you know yourself and able to control your emotions, you are very much there already...

To others, controlling emotions is not easy from my experience. When you buy, you may buy because you are greedy and too rush. When you sell, you may sell because you are fearful...

Anyone out there have any comments or personal experiences to combat this?

that ius easy, always remmeber this...

i feel very true...

U fear when u should hope, u hope when u should fear.
                                                                                           Jessee Levermore

------------------------------------------------------------------------------------------------------------------------------

HOPE
====

Hope clouds facts. You can hope for the market but the market will never entertain to your hope. Hope induces hesitation to cut loss.

Luck plays no part in the success or failure of a trader. Never hope for luck to get you rich.

Wishful thinking must be eliminated. Especially for a long term investor, instead of holding on and wishing and hoping, they should follow the action and reacted accordingly.

Never become involuntary investor by holding a declining stock.

To sell short goes against human nature, this is basically optimistic and positive.

GREED
====

Greed blind people, and distort reason.

FEAR
===

Reasonable person act unreasonably when they are afraid. Their judgment becomes impaired.

Never lost control of your emotion when a trade moving against you.

IGNORANCE
========

Stock market seems supplying easy money to people and raise the ignorance in human beings. Reverse of ignorance is knowledge.

People that think that they can make money in stock market by not working for it will end up losing money.

The most often ignorance in the market that lead to losses:
1.   not paying attention to technical side
2.   loss of focus on fundamentals
3.   misled by inaccurate earning estimates

There is never easy money on the market.

Often, a period of success leads traders to become careless and ignorance.
The problem with cut loss is, easy to say hard to do; the problem with let the profit run is, most often, the profit only run 100m, not the 400m as you expected.

http://www.booffett.~.com/

Offline Sannayo

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Re: So how do I get started?
« Reply #7 on: February 02, 2006, 11:51:15 PM »
Hi James Smith.

If you have a life saving of RM 50 k, there are many options for you to grow your life saving other than investing in stocks. You may have heard many negatives view points about stock investment from many people you ask or some positive stuff. It is indeed a requirement to attain knowledge and skills to gain from stock investment. Yet, how much knowledge or skills is required to gain from stock investment? Even fund manages or brokers who spend their entire life learning about stocks face loses in stock investment.

We will never have full control of up and down in the stock market. Are you willing to risk losing all your life saving in learning to invest in stock without regrets? If you are not ready like me, keep your money where it is for now. Do not participate in stock investment as you may find that investing in stocks may not the only option to grow your money.

Yet, there is no stopping from learning to invest in stock by using real money as this will force and discipline oneself.

Life is always about decision making – sigh

Offline booffett

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Re: So how do I get started?
« Reply #8 on: February 04, 2006, 08:49:45 PM »
Hi James Smith.

If you have a life saving of RM 50 k, there are many options for you to grow your life saving other than investing in stocks. You may have heard many negatives view points about stock investment from many people you ask or some positive stuff. It is indeed a requirement to attain knowledge and skills to gain from stock investment. Yet, how much knowledge or skills is required to gain from stock investment? Even fund manages or brokers who spend their entire life learning about stocks face loses in stock investment.

We will never have full control of up and down in the stock market. Are you willing to risk losing all your life saving in learning to invest in stock without regrets? If you are not ready like me, keep your money where it is for now. Do not participate in stock investment as you may find that investing in stocks may not the only option to grow your money.

Yet, there is no stopping from learning to invest in stock by using real money as this will force and discipline oneself.

Life is always about decision making – sigh

50k, why not put in BOnd Fund...

with a 8% return annually, u get approx extra 1 month bonus...

and u can sleep well at night...
The problem with cut loss is, easy to say hard to do; the problem with let the profit run is, most often, the profit only run 100m, not the 400m as you expected.

http://www.booffett.~.com/

Offline julez.lim

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Re: So how do I get started?
« Reply #9 on: February 05, 2006, 08:22:05 AM »
Just to add a disclaimer to booffett's comment:
There are ups and downs in BOND fund.
Some can give you 8% or more, while others can give you less...

I do agree with booffett that is to put the cash somewhere else if stocks is not your cup of tea..
Starting some topics in Unit Trust now...

Offline jeybon

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Re: So how do I get started?
« Reply #10 on: February 06, 2006, 12:46:58 AM »
Perhaps, there is some truth in Sannayo's point of view.  If we can never control the market force, why try so hard to read and analyse the financial reports.  We can just put them into bonds and if still scared of the risk, go for the lower return FDs.  Focus on the business that we are doing now to get extra $$$.  Isn't that better?
Regards,
Jeybon

Offline michael.yau

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Re: So how do I get started?
« Reply #11 on: February 06, 2006, 10:40:54 PM »
Hello everyone, nice to meet all the members of the forum. As an introduction, i'm a university student, aged 20. I'm interested in investment and of course gaining financial freedom as my last goal, or should i call it my golden goal.

I have about RM5k to invest, so what can i do with that?
Currently i'm having RM2k in FD. I'm planning to invest all on FD.

Is there a good suggestion for me, besides FD? Maybe invest in unit trust?

Offline Calvin Wong

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Re: So how do I get started?
« Reply #12 on: February 07, 2006, 09:10:08 AM »
this is a good question.. RM5k isn't enough to invest in most stocks or property and putting your money in FD isn't really called investing... i am not qualified to give investment advice but i think the better options would be to go for REITS or unit trusts...

REITS btw didnt get an encouraging report in this month's Personal Money but i think malaysians will still like them...

Offline julez.lim

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Re: So how do I get started?
« Reply #13 on: February 07, 2006, 09:35:47 AM »
Hello everyone, nice to meet all the members of the forum. As an introduction, i'm a university student, aged 20. I'm interested in investment and of course gaining financial freedom as my last goal, or should i call it my golden goal.

I have about RM5k to invest, so what can i do with that?
Currently i'm having RM2k in FD. I'm planning to invest all on FD.

Is there a good suggestion for me, besides FD? Maybe invest in unit trust?

Good to know someone like you are interested into obtaining financial freedom :)
One thing to note is that for one to be able to advise on investment, one need to have a proper license. As for others, just take them as a person's views/opinion.
From my experience, at age of 20, I was still buying investment books, reading newspapers and financial magazines. Have yet to put a single cent to any investment yet. I guess, one additional thing I could have done at that age is to meet up with insurance agents and unit trust agents and learn more from them. LEARN first before invest, that's my style.

Yo, Calvin, who says one can't invest in stocks with 5k? There are always alternatives like Warrants. Not saying that one should do that though...

Offline jeybon

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Re: So how do I get started?
« Reply #14 on: February 07, 2006, 10:23:11 AM »
Welcome Michael, it seems so much suggestions from us here.  Why don't you read thru some of our forums to get a feel from what investing is like.
     Calvin suggested REIT short for Real Estate Investment Trust and Unit Trust which are moderate risk investment vehicle while Julez suggested stocks and warrants which are high risk vehicle.  Of course, high risk would bring higher return/lost and low risk vice versa.
     Try ask yourself what financial goal you currently have.  Eg.  owning a car when u graduated, house in 7 years.  Identifying what you are going to do with your money would set a clear path to realise your financial goal.
     As a student, you don't have stable incomes (paycheck).  So, I suggest you train yourself in a mock share market offered by Personal Money or the OSK before going into the real market as you would learn thru trial and error 1st.
Regards,
Jeybon

Offline Sannayo

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Re: So how do I get started?
« Reply #15 on: February 07, 2006, 01:25:47 PM »
hi michael.yau

in terms of investment, there is little can be done for RM 5k especially you oni have that much. the biggest investment for u is getting your degree with 2nd upper or even 1st class. then land your self a good pay job for fresh as a start. make sure u work hard in that company to gain experiences and recognition from people around you. this require time and lots of time. FD vs Unit Trust? this i really do not know which one is better as FD will surely gain but unit trust may not. In Fact, i believe you req more than RM 5k for unit trust.

Offline julez.lim

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Re: So how do I get started?
« Reply #16 on: February 09, 2006, 08:28:41 PM »
Actually, I don't agree with Sannayo. In unit trust, there are some funds whereby the minimum investment amount is only 1K (if not mistaken. Need time to dig them out... :P).
I feel that normally, when talking to people about investment or business set up, they worry that the amount they have is never enough. Hence, they never attempted doin it. A possible opportunity lost... No offence, ya Sannayo.

Micheal, as you can see, there are lots of opinions here... Do continue to read about the information you can find here and constantly question to gain better understanding from different viewpoint (something that is rare to find).

Offline Anonymous

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Re: So how do I get started?
« Reply #17 on: February 10, 2006, 02:40:41 PM »
Julez, you are right. You can start invest (open account) for unit trust even as low as RM500 and min additional investment of RM100. Don't look down on the 5k that you have save now. I had invested 5k in one of Public Mutual Fund 3 years ago, now the value already been 7.3k around 50% return in 3 years. Of course, you need to understand fundamentals of unit trust, equity, bond, dollar-cost averaging, unit spilt, fund managers, type of fund in market before you start investing. But I believe unit trust is a good start for a beginners before venturing into the stock market.

Offline julez.lim

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Re: So how do I get started?
« Reply #18 on: February 10, 2006, 04:08:40 PM »
It depends on individual. Some prefer to start with unit trust, others with stocks...
But the main thing to start is definitely knowledge and awareness of scams.
Btw, I started with stocks first and only later to unit trust (like bonds as a way to diversify my portfolio)

Offline michael.yau

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Re: So how do I get started?
« Reply #19 on: February 11, 2006, 10:51:27 PM »
Hmmm...  I guess I have to identify the options I have and take the one most suit my lifestyle now.


Thank you.

Offline julez.lim

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Re: So how do I get started?
« Reply #20 on: February 14, 2006, 10:34:36 AM »
Micheal, and also, try to align what you plan to do with your goals.
In defining your goals, try to define in more detail like the figures that you would like to achieve... :)
Check out the unit trust... good for you to learn from there too...

Offline rozmi

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Re: So how do I get started?
« Reply #21 on: February 14, 2006, 05:22:01 PM »
Hi James. Another alternative that you can consider is venturing into business. The same business that I am actively involve in right now. It is a franchize business, so we do not have to worry about all the nitty gritty of running a company. It's all been taken care of by the franchisor.

As far as the capital, only required about RM 34K. One thing good, it is a 100% guaranteed return on the invested capital. Nothing to loose

Anybody who is interested, pls visit my website http://www.smartinvestor.biz

Offline 24601

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Re: So how do I get started?
« Reply #22 on: February 15, 2006, 09:33:26 PM »
haha... so this topic is turning into business rahter than investing... interesting...

out of curiosity...

rozmi - how do you guarantee the capital? does this business involve direct selling?

thanks

Offline Sannayo

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Re: So how do I get started?
« Reply #23 on: February 16, 2006, 07:56:57 PM »
i think doing business is also part of invesment.. and i don't believe in guarantee on investment la

Offline Calvin Wong

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Re: So how do I get started?
« Reply #24 on: February 16, 2006, 08:05:54 PM »
yeah... sounds like a marketing ploy to me...

Offline julez.lim

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Re: So how do I get started?
« Reply #25 on: February 17, 2006, 02:57:41 PM »
Every investment have risk, hence no guarantee... The thing is that how well informed and managed you are on the risks that you are going to undertake.
rozmi, there will be a section on business coming up soon.. Maybe you can explain more about the business you are in once the column is up. OK?

Offline rozmi

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Re: So how do I get started?
« Reply #26 on: February 17, 2006, 10:05:12 PM »
Hi Fellas

Just managed to check-in after some hectic week at the office. I am glad to see some interest in the subject :-)

Sannayo, you're right that doing business is also part of investment. And like every investment, it comes with it's own risk and reward

As I mentioned earlier, I am in the franchise business. In principle, our basic product is selling Reverse Osmosis (RO) water through vending machines. If you look around us, you might notice some vending machines selling 20cents of RO/filtered water for 1 litre. Some are even cheaper

With a startup capital of ~RM 34K, you will own 1 RO water vending machine that comes with 8 years of warranty/maintenance support plus other goodies

Within 3 years of operation, should your machine does not give you back the RM34K that you have initially invested, we will refund back the difference amount. e.g Let say you only managed to get a profit of RM10K. We will then refund back RM 24K to you, and the vending machine is still yours. That is the guarantees that we honor

Believe it or not, our average sale per month ranges from RM1500 to RM3000, depending on the location of your machine

It is purely passive income, without requiring you to do anything, rather than every week, collect coins from your vending machine....that simple

Anyway, it is not my intention to do marketing ploy or what. Just as the topics says, I am just sharing one of the many ways that we can start building and minding our own business....:-)

Julez.lim - keep us posted on the new business column that you intend to start. I am still open for all the possibilities. There are huge opportunities out there for us to grab....why not us to grab those.....

......Some people make things happen.....some people see things happen....some people asked what had happened.....and some people did not even know that things has happened....

Cheers !

Offline jeybon

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Re: So how do I get started?
« Reply #27 on: March 13, 2006, 01:56:25 AM »
Hi Rozmi,
           Perhaps you might want to highlight some challenges that you experienced throughout your vending machine business.  Kindda interested to know more...
Regards,
Jeybon

Offline swisscash

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Re: So how do I get started?
« Reply #28 on: June 16, 2006, 02:08:19 PM »
Hello everyone,

I am new to this forum and I am looking for advice. I have my life savings of RM50K and I want to invest this in the stock market.

What's the best way to get started?

Thank you.

I used to invest my money personally - stock/options/forex etc, it doesn't work. It is also not good enough to try to learn about investing as your chances are never going to be higher as compare to  professional investment manager who all time in investment and have more resources/information.

I have since learnt to leave the my investment to the expert. I have been getting good return from this offshore investment. If you are interested, feel free to explore. www.swisscash.biz/sgche1561901

Offline julez.lim

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Re: So how do I get started?
« Reply #29 on: July 25, 2006, 05:57:04 PM »
Was talking to a friend last weekend who is not knowledgable in stocks, unit trust and etc. He is the average Malaysian mainly gaining from FD. This typical person's portfolio mainly have endowment plans and subscribe to some insurance schemes which provide 4.7% return.

What do you think? Very low risk to No risk option...

Offline Calvin Wong

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Re: So how do I get started?
« Reply #30 on: July 25, 2006, 06:51:40 PM »
Was talking to a friend last weekend who is not knowledgable in stocks, unit trust and etc. He is the average Malaysian mainly gaining from FD. This typical person's portfolio mainly have endowment plans and subscribe to some insurance schemes which provide 4.7% return.

With ref to the topic, this wouldn't be a very good way to start investing. But I guess we have to respect the preferred lifestyles of others. Some people would prefer to have a simple, comfortable and stable lifestyle as opposed to a richer and riskier one... and that is perfectly fine.

I know this person whose dad put RM1 mil in FD and used the interest to support his education abroad. His father was a fairly knowledgeable investor, but when it came to his son's education he didn't want to take any risks.

Offline Madmatt

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Re: So how do I get started?
« Reply #31 on: August 03, 2006, 01:03:19 AM »
Hmmm...everyone has got thier personal opinion on generating passive/residule income streams.

Here is my two cents worth:-

1) For 4k or less investment/business: I have a way to help you generate a minimum of 200% of your investment within a month. It's a LEGAL business venture which only takes up 5 or 6 hours a day (night time) for four days in a week of your time. This in NOT MLM but a real business. I'm doing this particular business right now and i want to expand and make more. PM me if you are REALLY interested and willing to work. You can either partner with me or you can work part time for me.

OR

Same business but work on weekends only (sat and sun, morning to early evening).

2) For 10k to 15k investment only: Same as above but bigger and faster generation of revenue.

You do the math on how much you can earn in a month. Better than working for ppl.This investment/business is sales related and this product is easy to sell.


Terms & Conditions:
1) Only for those who are SERIOUS, only will i tell you what the business is
2) For Malaysians only at the moment.
3) I will not tell you what the product is untill we agree to do it together. Don't worry,it's legal and ^ easy to sell.
4) Partnership is me70%-you30%
5) Must not break the partnership for a year. If you want out and start on your own, do it only after one year of our business.
6) Do not take my business idea and do it on your own with others at least within a year of our partnership.


Cheers
Matt
http://internetmoneyblog.com
« Last Edit: November 30, 2006, 07:25:01 PM by Madmatt »
Internet Marketing Home Business (http://internetmoneyblog.com)

Autopilot Profits (http://internetmoneyblog.com/recommends/autopilot-profits/)

DAY JOB KILLER! (http://internetmoneyblog.com/day-job-killer/)

Offline 1liner

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Re: So how do I get started?
« Reply #32 on: November 30, 2006, 06:21:14 PM »
No time is ever a good time to start, so just start when you are mentally prepared

Offline Madmatt

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Re: So how do I get started?
« Reply #33 on: November 30, 2006, 07:26:34 PM »
Ooopps, I for got about this thread. The offer is now closed as I've found some partners.

Cheers
Matt
Internet Marketing Home Business (http://internetmoneyblog.com)

Autopilot Profits (http://internetmoneyblog.com/recommends/autopilot-profits/)

DAY JOB KILLER! (http://internetmoneyblog.com/day-job-killer/)

Offline jeybon

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Re: So how do I get started?
« Reply #34 on: February 25, 2007, 05:02:49 PM »
Madmatt,
           I don't feel it's wise to promote your stuff in this thread.  Try the 'self advertising' instead.  This thread is to educate, not to be misused.  :(
Regards,
Jeybon

Offline DenLee

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Re: So how do I get started?
« Reply #35 on: March 31, 2007, 07:53:45 PM »
Come to stock section if you want to learn to trade.... :angel:
Regards,
Denlee