Saturday, February 5, 2011

A General Reminder!


It is already 6.44am and I still can't sleep, and i have this long journey to go today. Bosan balik kampus. To kill some time, i decided to surf the realm of net kingdom, preying upon some useful info needed to make a living.

There is various forums speaking on stock trading but there is one particular forum, which i refuse to disclose so that they can continue to amuse me with what they call "optimism" and what i saw as "tomfoolery"

These bunch of self proclaimed experts in stock market talk gibberish, giving no technical evidence or fundamental reasoning to backup their opinion, only lead innocent and unexperienced investor into investing in some crappy counter for this crappy reasoning!

Why people tend to believe whatever crap written in the net? and risk all the hard earned income into something that might be a "ponzi scheme"

These are some basics rule on information you relied on for investment purpose;

1. Verify the rumours from a credible source.

Credible source here refers to mainstream media reports on economy up to the company very own website. Bursa Malaysia's website also offers good news.

Tabloids or forums on itself is not a good source, since they are experts at spreading rumours and hearsay.

2. Ask your broker, dealer or remiser.

For someone who make a living from the Stock Market itself, these people are at the forefront of any corporate news as well as credible rumours.

At least these people are experts than some kid who brag a lot with his RM500 worth stocks.

I am not insulting a person's purchasing power but a person irresponsible action for misleading the people. A newbie (also a noob) should act like one.

3. Make sure such rumours is supported with another source.

Here is a good example;

Company A was expected to get a timber contract from Company B

The rumors will be credible if Company B involves in logging industry, it wold be crazy to believe the rumours (read news) if the alleged Company B is KFC.

Company B would also made statement related to the said contract. This is a good indicator to the credibility of the said rumours.

Another example;

Government decide to build housing scheme for the poor

The beneficiary of this move would be a company or companies in construction sector, investing into some alleged plantation company obviously does not make any sense, unless the land belonging to the plantation company involved. That would be a good move.

This sort of thing happens because Malaysians tends to believe a rumours (and made their buying decisions) and lose a lot when the concrete news approaches (sells the shares at massive scale and some people surely make a huge loss)

People might ask, "who is dumb enough to do that?"
My answers is "people who is dumb enough to do that"

There is reason why people spend time, money and effort to make database that really helpful as a source of guidance in investing their hard earned money. You need to spend some money to make good money. Jangan kedekut dengan diri sendiri!

My experience have shown me that these sort of people often become prey of greed and laziness.

Greed. No explanation required. Laziness, too lazy for his own good. It just a few clicks anyway!

To an Auntie who spend RM6,000 on Spritzer because water tariff in Penang is expected to increase, good luck with that! :-) If you ask me earlier, i would have told you the right counter for that.

It is 7.11am.. and still awake. God, please save me from me.


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