Thursday, October 22, 2009

Are the stock market for you? Prepare yourself:


I'll always heards people say they don't to want to invest in stock market because they afraid of losing money there. What make they think I love losing money...neither me. If you are someone who love to put your money into the bank and get 3% - 5% per year and be eat by inflation, then the stock market actually not for you. And if you can't sleep at night after purchasing a stock, then I advice you not to put your hands in the stock market either.

Already give up? Don't do that before you finish reading this article.

Actually anyone,yes anyone (or I can said eveyone) can make money in stock market if you can read the numbers.Yes, I'm really mean it. As some person think that investment in stock market are all about money,
they are totally wrong. Money only the half part of stock market and the other part which is more important is the willingness of person to invest in their time (and knowledge).

"You're bluffing a lot. My friends has just lost their hard-gain money before. And just now you asking me to invest in the stock market? Are you out of your mind?". If someone would ask me that questions, than the answer is "YES".

Some people,actually 80% or more of investors (they think they're) are losing money not because of stock market itself. Neither the economy. It is purely because of them. Yes, they lose money because of themselves. Their manner, their thought and their over-reaction to a market. They kept losing money because they always jump from one stock to another based on their emotions or tips from the genuine called investor/insiders. They are some people who are buying that certain stock because of their neighbour's son who works at that company saying that the company is doing well. Then, they kept 'jumping' and one day found that they are losing all of their money.

As I practising Value Investing, which mean I choose a good company then buy and keep their stock as long as I can. The type of stock I own is a good company who has at least 10-15 years experience in their business. Most of them actually have more than that.

Am I that good? No, totally not. I also lost money before (and still can lost money now). Actually I lost almost half of money in stock market at first (when I start). After that lost I'm asking myself what is wrong with me. They are some who making money but why I'm losing my money. Am I going to stop investing now? Am I ready to stop investing because of losing half of my money? What I'm doing wrong? I keep asking me that and finally I found that I'm buying money totally on my emotions.

Am I stop? No. And neither should you.

After that, I still invest. But, not buy putting my money in the stock market and hope that stock price will go up. I'm now are ready to invest in my knowledge, my time, my emotions and not to forget how to pick a good stocks.

That's all for now. Good luck.

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