Author Topic: STOCK TRADING  (Read 565 times)

Online king

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STOCK TRADING
« on: May 06, 2016, 07:32:33 AM »



Re: 3i Investing Whispers
« Reply #9748 on: Today at 07:03:48 AM »
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Personal Finance | Wealth Management
4 Reasons Why Stock Trading Makes You Powerless
Why 80% of stock traders quit within the first two years…



By: Ken Chee, Co-founder & Executive Chairman, 8I Group of companies
Published: 27th August 2014 | Last Update: 30th August 2014 | Location: Kuala Lumpur
29,345 views
“Rule No. 1: Never Lose Money; rule No. 2: don’t Forget Rule No. 1”- Warren Buffet

Part 1: Truth—The Best Kept Secret
That No Brokers Talk About

Brokers can deny this all they want, but it’s simply TOO OBVIOUS that stock trading puts you in deep risk.

I know friends who are some of the smartest (and sharpest) stock traders out there. They have decades of experience trading overtime on the job. Even they get eaten alive by the markets on a good day.

Even if you have a lucky streak, you could still easily wipe out your entire earnings from the past 10 years in a single day. It will not be the kind of loss that you can make back easily.

Let me give you a few reasons why…

Reason #1: It’s a huge casino

The gambling nature where people trade on a hunch is risky business. Once you’re thrown into the stock market “cage”, all your primal emotions—greed, fear, and pride—will cloud your judgment. You will be firing at any stock that feels right at the moment.

In fact, you need a lot of risk capital (and nerves of steel) to survive the capital stress or you’ll be out of the game poorer. Trust me, when stakes are this high and people are guessing the market will go their way, no one is entirely sure what they are doing.

Reason #2: You will work harder than your broker

Because of these speculations, most trades has to exit the same day before the market closes to avoid unmanageable risk. Short term trading of this sort forces you to buy and sell shares when their prices are their most volatile and erratic—a clear example of a losing battle if you ever seen one.

Now you have to constantly monitor stock prices the moment you execute your trade and watch it like a hawk until you exit.

In short, your money is not the one working hard. Instead, you’re working overtime on a new day job for zero benefits where failure means losing all your life savings.

Reason #3: The sharks will sell your stocks

And it gets worse… traders often buy stocks on margins (using leverage and borrowed funds). In fact, brokers encourage this by giving them bigger margins to do so. They even gave it a name—”Margin Trading”.

This amplifies the risk because leverage can work BOTH ways. You can make a lot of money playing with other people’s money and you can lose everything in a blink of an eye as well.

All it takes is bad luck for one day for leverage to work against you.

Think you can hold on to the stock when it bounces back up? Think again!

The broker or exchange can issue a “margin call”. When your stock price falls lower than the limit allows, they force the trade to close (without your permission) before any profits are realized.

When this happens, it causes a domino effect of mass selling that lead to more margin calls and effectively crashing the share price.

Reason #4: Even professionals with a bank full of money can fail

Still not convinced that trading is risky? This might convince you. The trade that destroyed the infamous Nick the “Rogue Trader” Leeson in 1995 was ironically his more conservative positions.

Nick placed a short straddle on 16th January 1995 betting that the Nikkei exchange would stay stable overnight, neither rising or falling significantly. As long as everything stays the same for just ONE NIGHT, things would be gravy for him.

Without skipping a beat, the Kobe earthquake struck early next morning on 17th January 1995. He probably felt the shockwaves of the 7.2 Richter scale earthquake as it send him into a tailspin and ultimately to his downfall.

It happened to the rogue trader and it can happen to you too.

Part 2: Blind Leading The Blind—How Almost Everyone Is Buying And Selling Stocks THE WRONG WAY

Ask yourself, how many people do you know make these mistakes in the stock market?

Mistake #1—HOT STOCK TIPS

I mean, people know better than to put down all their savings on a hot stock tip. I lost count the number people who said they lost everything because they believed someone who heard something from a friend of a friend who works somewhere.

Very few people spend time to do the research and fewer still make a calculative decision free from fear, greed, and pride. You can’t get rich on hearsay or expert’s recommendation. You must practice INDEPENDENT THINKING.

Mistake #2—BELIEVE THE EXPERT

The worst thing you can do is trust someone without knowing if they are telling the truth, or smart enough to know it in the first place. Just because they have a CFP, CFA, CRMA (or other acronyms) at the end of their names doesn’t mean you should surrender your finances (and common sense) to them.

Honestly, if others make you do things you don’t fully understand, money will keep disappearing from your bank account. And that will keep happening until you realize that it’s not other people’s job to make you rich.

“The worst thing you can do is trust someone without knowing if they are telling the truth, or smart enough to know it in the first place”

Mistake #3—COMPLICATED 
FINANCIAL INSTRUMENTS

What about mutual funds, futures, penny stocks, Forex, options, gold or junk bonds? If you don’t understand how to invest stocks, going after complicated financial instruments hoping that your luck will turn is wishful thinking.

In fact, if anyone tries to graduate you into making money with these tools before you even make money in stocks, then your success will be short-lived. More often than not it’s just a fast way to land you in a poorhouse—the one your financial planner has built.

Mistake #4—GUT FEELING

They think they are investors—but they are speculating, guessing, and playing with money on a hunch. A lot of people may think they know what they are doing—but many are actually clueless and following everyone else.

Money is like a gun. It gives you enormous power when you spend it. That’s why you’re so susceptible to emotions when you use it. Every time you buy based on your gut feel, you’re playing Russian Roulette with the broker holding the gun to your head. It’s not investing, it’s gambling.

“A lot of people may think they know what they are doing—but many are actually clueless and following everyone else”

Mistake #5—IGNORANCE

Knowing nothing is no defense. If you are financially illiterate, you will be a danger to yourself and an easy victim to other scams, schemes, and shams to unscrupulous people out there. Worst case scenario? The market eats your lunch money.

Best case scenario? You do nothing. But that’s an awful plan. In case you haven’t heard, the government is already investing your life savings and you need to know if they are making the right decisions for you.

“If you don’t start educating yourself, you wouldn’t know whether others are growing your money, losing your money, or downright stealing your money.”

As you can tell by now, this is a perfect recipe for financial disaster waiting to happen.

I’ve seen so many people make these mistakes from 6 years of educating the public that it’s almost expected in every crowd we teach. If no one you know comes to mind when you read those common (and costly) mistakes, then you are probably the one who made them.

But… Why Are There So Many Malaysians Losing Money In The Stock Market?

It scares me when I see the number of people coming through our door who got burned badly in the stock market.

You see them from all walks of life: Old, young, retiring, studying, cash rich, poorly paid… Everyone!

There’s so many of them it’s hard not to bump into someone you know.

Just stand in our office for 20 minutes and you’ll be asking: “Where do all these people come from? They just keep coming and coming!”

My theory: School lah! (Where else can you find so many people?)

Our education systems are not designed to make us investors. When I was in school, everyone was relying on hot exam tips to ace their subjects. The more diligent ones will actually analyze past year questions to predict and spot the current year’s trend.

We believe everything the teachers taught as the gospel truth. After all, they are educated and well-qualified experts so you’re not suppose to think they can be wrong. And when you don’t know the right answer, you just “tembak” for the right one.

Our schools taught us how to get a job, but nothing about what to do with our starting salary once we earned them.

In fact, the only investing they taught us is to save our monthly wage in the bank to earn interest. They forgot to explain how surviving on 2.45% bank interest rate in today’s economy is not even humanly possible.

It’s not your fault that proper investing is not taught in schools.

Sure, it’s a real shame that schools forgot to teach us investing. But that was then, this is now. Here’s what we should do instead…

Invest in yourself first and get a solid, proven, tried-and-true investing education. Make some mistakes with small money. Learn from them. Then make more mistakes. Learn some more. That’s how you safeguard your financial life with the most trustworthy and capable investor – yourself!

The good news is, if you use the right approach that the most successful investors use (some of whom are billionaires), you can make fewer mistakes and learn how to snowball your wealth with peace of mind.

If you’ve read up to this point, you probably want to learn more about what you can do to stop losing money and make consistent earnings from the stock market safely. That’s why I put together this essay. To reveal to you – for FREE –  the secret idea that billionaires use to amass their wealth (read part 3).

If you cheated and skipped to this point, I encourage you to re-read the earlier chapters of this essay before continuing. Part 3 will go into the deeper, more powerful truths about investing. I’m not about to hide anything from you so it’s going to be a lot longer from what you just read.

I urge you to examine these facts carefully with an open mind…

Avoid these dangerous traps of the stock market and run quickly towards the real path of financial independence.

Because by the time most Malaysians see where they are heading, it may be far too late.

Read Part 3 to follow a safe and proven investing method to amass more wealth than the past year.



http://www.wealthin.com/4-reasons-why-trading-stocks-make-you-powerless/?utm_source=facebook-paid&utm_medium=cpc&utm_term=s3a4d001-s%3Amechanism-a%3Aproblem-aware-d%3Aadam&utm_content=int%3Aforeign-exchange-market-ac011%3Acartooncompare-i&utm_campaign=vgw
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Online king

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Re: STOCK TRADING
« Reply #1 on: May 06, 2016, 10:49:23 AM »



But… Why Are There So Many Malaysians Losing Money In The Stock Market?

It scares me when I see the number of people coming through our door who got burned badly in the stock market.

You see them from all walks of life: Old, young, retiring, studying, cash rich, poorly paid… Everyone!

Online king

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Re: STOCK TRADING
« Reply #2 on: May 06, 2016, 10:50:22 AM »



A GOOD ARTICLE

TQ  3i

Offline iiinvestsmart

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Re: STOCK TRADING
« Reply #3 on: May 06, 2016, 10:51:33 AM »
Quote:   <<<<Why Are There So Many Malaysians Losing Money In The Stock Market?

It scares me when I see the number of people coming through our door who got burned badly in the stock market.

You see them from all walks of life: Old, young, retiring, studying, cash rich, poorly paid… Everyone!

There’s so many of them it’s hard not to bump into someone you know.

Just stand in our office for 20 minutes and you’ll be asking: “Where do all these people come from? They just keep coming and coming!”  >>>>




When you participate in this forum, you will probably get the impression the participants here are all making money in the stock market.   :) 

Nothing can be further from the truth.

It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline iiinvestsmart

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Re: STOCK TRADING
« Reply #4 on: May 06, 2016, 10:54:11 AM »
You followed JM in his promotion of GSB.  Yes, there were winners and losers.

You followed Demon in Patimas Target Price 30 sen.  Yes, there were many losers.

You followed Dr. KIM.  The manic depressive in this forum.  How many have profited from his shoutings?

You followed raider's 40 stocks promotion.  It was so confusing, I also don't know how to grade it. 
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline iiinvestsmart

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Re: STOCK TRADING
« Reply #5 on: May 06, 2016, 11:03:05 AM »
The market can remain irrational longer than you can remain solvent.

The Leeson story is most revealing. 

A black swan event knocked him flat due to his leveraging. 


Quote <<<<Even professionals with a bank full of money can fail

Still not convinced that trading is risky? This might convince you. The trade that destroyed the infamous Nick the “Rogue Trader” Leeson in 1995 was ironically his more conservative positions.

Nick placed a short straddle on 16th January 1995 betting that the Nikkei exchange would stay stable overnight, neither rising or falling significantly. As long as everything stays the same for just ONE NIGHT, things would be gravy for him.

Without skipping a beat, the Kobe earthquake struck early next morning on 17th January 1995. He probably felt the shockwaves of the 7.2 Richter scale earthquake as it send him into a tailspin and ultimately to his downfall.

It happened to the rogue trader and it can happen to you too.

Part 2: Blind Leading The Blind—How Almost Everyone Is Buying And Selling Stocks THE WRONG WAY

Ask yourself, how many people do you know make these mistakes in the stock market?
>>>>

raider ... please take note.  :cash: :)
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline CurryLee

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Re: STOCK TRADING
« Reply #6 on: May 06, 2016, 11:09:35 AM »
Wow! Earthquake landslide all come out! The more drama...the more banana....ok...so...u out of market ady?  :D
The market can remain irrational longer than you can remain solvent.

The Leeson story is most revealing. 

A black swan event knocked him flat due to his leveraging. 


Quote <<<<Even professionals with a bank full of money can fail

Still not convinced that trading is risky? This might convince you. The trade that destroyed the infamous Nick the “Rogue Trader” Leeson in 1995 was ironically his more conservative positions.

Nick placed a short straddle on 16th January 1995 betting that the Nikkei exchange would stay stable overnight, neither rising or falling significantly. As long as everything stays the same for just ONE NIGHT, things would be gravy for him.

Without skipping a beat, the Kobe earthquake struck early next morning on 17th January 1995. He probably felt the shockwaves of the 7.2 Richter scale earthquake as it send him into a tailspin and ultimately to his downfall.

It happened to the rogue trader and it can happen to you too.

Part 2: Blind Leading The Blind—How Almost Everyone Is Buying And Selling Stocks THE WRONG WAY

Ask yourself, how many people do you know make these mistakes in the stock market?
>>>>

raider ... please take note.  :cash: :)
malimalimaliongongongnotongchefbutishua thuatong

Offline KLSE LOSSER

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Re: STOCK TRADING
« Reply #7 on: May 06, 2016, 12:07:47 PM »
 :thumbsup:

Offline iiinvestsmart

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Re: STOCK TRADING
« Reply #8 on: May 06, 2016, 12:15:34 PM »
>>>>Brokers can deny this all they want, but it’s simply TOO OBVIOUS that stock trading puts you in deep risk.

I know friends who are some of the smartest (and sharpest) stock traders out there. They have decades of experience trading overtime on the job. Even they get eaten alive by the markets on a good day.<<<<


Dr. KIM disagrees strongly.   :D

It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline iiinvestsmart

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Re: STOCK TRADING
« Reply #9 on: May 06, 2016, 12:22:15 PM »


It’s a huge casino

The gambling nature where people trade on a hunch is risky business. Once you’re thrown into the stock market “cage”, all your primal emotions—greed, fear, and pride—will cloud your judgment. You will be firing at any stock that feels right at the moment.



Who fits the description above?   :cash:
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline deep_maa

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Re: STOCK TRADING
« Reply #10 on: May 06, 2016, 03:22:00 PM »
BEST KLSE DAILY SIGNAL 1500 SGD ..PROFIT FOR SURE http://bit.do/epicmy

Offline deep_maa

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Re: STOCK TRADING
« Reply #11 on: May 06, 2016, 03:23:48 PM »
BEST KLSE DAILY SIGNAL 1500 SGD ..PROFIT FOR SURE http://bit.do/epicmy