Sunday, September 6, 2009

Why we can not make big money in Stock Market

Why do you find gets difficulties in getting rich from the stock market?
If you said that you could and or you are able to , I should say “ congratulations! As far a is known that 95% of the people are losing money in the stock market counting in a period of say 5 years. And only a small amount of people can actually make money through investing in the market.

When Most of the middle class Hong Kong people has some kind of mortgage with more than 30% of his income goes into the bank for his flat he is staying or the sending falt he buys for his second wife… so he had to spend the rest say 30% the money behind for his monthly expenditure.

For an instance an average manager of monthly incoming of HKD$100,000.00, he might use up 30% for his house, 30% for his wife I supporting the family in all kind of bill, children schooling fee, food, clothier and other expenditure. He might have to spend 8-10% on the family incurrence, 5% for himself.

He might have to keep some in bank for saving say 15%, so what the left behind is about to invest or to speculate on the stock market, is just 10% of his income, say HKD$10,00.00 if you are so keen I keep up with the unpredictable stock market.


So if you were good at understanding the rule of the game on some good concept stock say 1211 BYD beginning of the year, at that time it was about HKD$14.00 a shear, you bought HKD10,000 all into this share and now you would have a share value of approx HKD48.00 as it has been pushed up for 480% in 7 month. This is a very exceptional sucessfully case. And if you are unfortunate that buying some dead stock, you may lose money.

If you dare and are able to understand the market so well then some of you may get to roll up you money in many folds, but as I mentioned you basic premium is small, you would not get rich. And on the other hand, who has such kind of energy to keep up with the stock market? Chinese saying, we lose money because we have won it… When you get some appreciate on paper, your greediness would woo you releasing more of your saving into this swelling stock market, who know eventually you will be the one who can make profit on it?

I had better advise not to spend too much time, money in it.. Life can be short and can be meaningful if you can use your time with your beloved wife, daughters or perhaps more time with you friends. Do enjoy life on what you have … there is no one get starved in Hong Kong…. but there are a lot of unhappy people in Hong Kong, probably they really do not know what to do after works!

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