Monday, February 18, 2013

The reason to invest in Stock Market!


In my last gathering with one of my friend, we discuss about what are the investment options available here. We talk about properties and stock market. To him, stock market is very high risk, hence, he almost put everything he had into properties. According to him, properties is better than stocks as for the last few years, he seem making a lot of money in properties.

Yes, stock market is high risk if you don't know the company and the management. While the question is not about investing in stock market or properties which one is better, it should be where you park the money and still can sleep well. There are many investment options available out there, one need to choose a most suitable for your personal needs and investment style.

Most people afraid to invest in stock market because they scare of losing money, as they think stock price will go down and they don't want to lost their hard earn money. It's high risk to invest in stock market if lack of proper planing and buy on tips (speculate).

After so many years of trading in stock market, I have learn and develop a better trading plan for investing in stock market. In the last 20 years, there were numbers of listed company went bankrupt, it does matter if you being cheat, the important thing is you pay for tuition fee, never forget the lesson learn. This is one of the reason why I like to write my investment experience and shares with all my clients. That's the way how I learn and overcome the weaknesses and develop a better plan to avoid the similar mistake in future.

If you ask me how much profit to achieve is consider a successful investment? There's no standard answer, my opinion is, set your own target base on your standard, don't raise the bar too high. Base on one's thinking, the risk willing to take, the feeling and the life style to develop your own plan. I don't like to fall into the trap of greed, fear and compare with others, as this will create unnecessary pressure for myself.

The journey for investment and stock market is to know more companies, I respect those successful company be it local or foreign. We can understand how these companies contribute to economy and the country. We can learn how those Billionaire move their asset and create more value, how they manage their company to make profit and increase in numbers and contribute to society. This is the way how we can learn from them and make us become the better person and shares with others!
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