Wednesday, December 26, 2012

Stock Market record new high, so what's your result?

Index is breaking the all time high record! Maybe we need to thanks the hot money “created” by US, seem now already spread the effect, especially for Asia stock markets, from Hong Kong to Taiwan, Singapore, Thailand, Indonesia and Malaysia.

However, you would be surprised if I tell you many investors are not making money, some even lost money in their trade. Why? And how could this happen when market is bull run?

Unfortunately, this is what really happen in retail investors. School never teach how to invest like a millionaire. After all, if there's a school, I don't think there would be any millionaire teacher willing to teach those new bee how to earn their fortune in the stock market. What we could find are those half pass six teacher, so what kind of result can you expect?

In fact, investment is similar to swimming. You can not and also dare not trust the advice from your friends or teacher. Furthermore, you may not know what they told is right or wrong, it could be another stupid idea! Therefore, most investor like to try an error in order to gain the “experience”. I call this as a school fee / tuition fee that one need to pay in order to learn the investment lesson. How big or small the “fee”, it's all depend on your decision.

I paid a 5 digit amount for my “tuition fee” in my earlier part of investment life. It was a big amount and I treat it as my very first investment lesson on “why I lose money in stock market”. Till today, I still record down this important “lesson”, to remind me not to do the similar mistake again.

For those who started to invest in stock market 10 years ago, if you have yet to learn the lesson, my advice is, don't invest anymore, better put your hard earn money in the bank's FD. If you are curious what are the lesson that I learn:
First, never buy a stock base on tips or rumours.
Second, never buy the troublesome company.
Sound simple ya, but if you don't believe me, go ahead to buy a stock base on hot tips, or buy a cheap company that going to burst... almost 90% I am sure you going to pay for it! 

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