Making Money From Investments Through The Kampung Way - Kampung Investor Dot Com

I am not quite sure what do people always use, share market or stock market but nonetheless i am sure many are loosing money from the stock market although it has rallied from 800+ points to current 1200+ points.

I was talking to my friends the other day and cheekily asked him whether he got invest in the share market? He told me that he didn’t and regretted for not doing so. My friend also asked me whether i made money from the share market and i told him that my record thus far is all gain and no losses.

My friend then tell me this “Surela, who will not make money from the bottom out of the stock market until current level? Everybody is making money from the share market as all the stocks has gone up. Close your eyes and picked any of the stock you all will surely make money.”

At the point of time, it really struck me and i really agreed with his statement that everybody is making money as the market has rallied quite a lot.

My perception that most people are making money from the share market suddenly changed when i went to OSK to make payment for my SCOMIMR and MAXIS which i bought recently.

The investment house which i went was quite and all the uncles and aunties that made the place noisy like market is no where to be seen! How could this happen if the market has rallied so much recently? Isn’t the place should be jam packed and many people will be standing when there is no chair for others to sit?

Then i ponder again then i realized why my Sifu used to tell me, “All those aunties and uncles usually only play those top 10 counters and they buy based on rumors”

I think i have come out with a final conclusion that yes, there are people making money from stock and shares but there are still more losers then winners as always.

Here are the few reasons why people can’t make money from stock and shares :-

Buy on rumors

Most people will just buy blindly on stocks recommended by friends, relatives or even people they just know without doing any homework. I used to be like that lastime but not anymore. If you buy stocks and shares based on rumors there is only one conclusion, you are heading to Holland!

Buy on technical analysis and no fundamental

When people buy stocks and shares based on Technical Analysis (TA), buying on company without any good and solid background will only lead to more pain then gain. If you buy stocks and shares based on fundamental where investing in good companies that has good financial record and solid future earnings, you will never go wrong!

Read more on why Technical Analysis is a pain in the ass which i wrote a couple of months back. You will get a clearer picture on it.

Greed

The number 1 enemy for human is greed. They will know when to buy but they won’t know when to sell. Investors usually won’t set a target price to exit. If they have set does not mean they will sell. Human will say it will stay go up higher and higher. They would rather and happily sell on a lost rather then gain. Sounds like you when you started to invest?

It does really sound like me when i started! ^^

No patience

Another downfall of investors when they invest in stocks and shares is patience. The reason why they loose patience is that they see their investments fall like no tomorrow. They will panicked and sell quickly without any patience. We can’t completely blame them for that as the stock those that looses their patience are without any fundamentals.

When you buy stocks without fundamentals, the stock you bought can go up but when going down it might not come up again.

Contra or gambling

Playing contra is a method where investors are looking for quick gain within 4 days. They will buy and keep the stock but will be hoping the stock they bought will shoot up in that short period of time. 10 players, 8 will come out losers and 2 will victor. With such low percentage of winning, will you put a bet on being a contra playing in stock and shares? You stand a higher chance of winning in Genting playing Player vs Banker!

Worst of all, some of the contra players buys big and don’t have the money to pay back their losses. This leads to running away from home as the investment house personnel will come looking for them if they don’t pay up. More like gambling rather then investing!

Buy high sell low

We always listen people telling us to make money in the share market is very simple, buy low sell high! Who on earth does not know this concept. Even my cousin sister’s who are 15 years old can tell me that.

Don’t be surprised if you find people around you buying high and selling low!

Conclusion

More are loosing in stock and shares rather then making. If you avoid any of the 5 main criteria, your chances of making money in stock and shares are much brighter. It does not mean that you will surely make money if you avoid the 5 steps but it’s better outcome.

If any investors have any of the 5 criteria, you can be rest assured, your ass will be kicked hard and i really mean it! I have gone through that stage having all 5 criteria! ^^ Now i have changed and i am doing fine. Ponder it and realize it before it’s too late.

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