Buy shares at a dollar and sell at 20 cents
By scheng1
@scheng1 (24650)
Singapore
December 29, 2015 7:36am CST
Do you know how the majority of people invest in shares?
They buy shares at a dollar and sell at 20 cents.
They definitely do not make money in this way.
They lose 80% of their capital by doing such stupid thing, and then they tell you that investing in shares is risky.
They ask you not to buy when the shares at selling 20 cents.
Why are they doing such a stupid thing?
The reason they give is that everyone does it.
They see all their friends buy shares when the stock market is nearing the peak. They have great confidence in the stupidity of everyone else.
When they see their friends, colleagues, grandpa, grandma, fishmonger, cashier, bank teller, bus driver, and everyone else buy shares at a dollar, they have the confidence to buy.
Why do they sell at a loss? The answer is again everyone does it. Everyone sells at a loss, so they sell at a loss too.
10 people like this
10 responses
@pgiblett (6524)
• Canada
29 Dec 15
I have looked into investing here before. trouble is most people don't do the maths. if you buy $1,000 worth of $1.00 shares, the you must consider the trading expenses e.g. $20 dollars per trade so you should not sell for under $1,020. What people must realise is that the only way to sell at a profit is to buy when share hit the bottom of a down cycle. Predicting that is tough.
2 people like this
@vandana7 (98787)
• India
29 Dec 15
Usually, more can be got in initial public offering. Once people get their allotment, selling it immediately can earn them profits but that is short term capital gain, so tax needs to be considered, and interest on period till allotment also needs to be considered. On average applying and selling is ok. Getting attached to shares is not a good policy. At the best, pulling out the principle and letting the profit remain in it may be a good strategy.
@youless (112103)
• Guangzhou, China
30 Dec 15
If you bought shares, perhaps you would understand why. Nobody wants to make a loss in the stock market. When they sell the shares at 20 cents, perhaps the stock market doesn't go well and it is likely it will be under 10 cents soon. And this is why they sell it. If it keeps going down, then they can buy them back, such as 10 cents? So they will lose less. I think if you want to make a big fortune in the stock market, the patience is necessary.
1 person likes this
@scheng1 (24650)
• Singapore
30 Dec 15
Hi Youless, you are right in a sense that patience is needed.
I have selected a stock that I want to buy next year.
The business is not doing that well at the moment because China economy is not doing that well, yet it is still producing cash.
I have a buying price, and the current price is still higher than my buying price.
1 person likes this
@Letranknight2015 (51499)
• Philippines
30 Dec 15
so, that's how trading usually works huh? i've been wanting to try trading but with that kind of scenario i might as well stick to my usual online thing.
1 person likes this
@scheng1 (24650)
• Singapore
30 Dec 15
That is the way that trading should not work.
Many people know nothing about the stock market, and yet they think they are smarter than many people.
if they have done their homework, and learn about some simple indicators, they probably will not lose so much money.
@scheng1 (24650)
• Singapore
30 Dec 15
It takes knowledge to find great companies.
Actually it does not take a lot of knowledge.
Everyone knows that Coke and Nike are great companies, and very profitable companies.
It just takes a few minutes to check the prices of these great companies for the past few years, and then decide at what price you want to buy.
