Taking the idea of investing in stocks forward, the point is how, where and which stocks to buy.
All we keep hearing is the stock market is a sham, frauds keep happening, it is onlythe promoters and the brokers who earn or can make money in the markets, a common man likeme can never earn money.
I would say that yes, shams and frauds keep happening, but frauds happenevery where, in the property market, in the banks everywhere hence why single out just the stock markets.
With the spat of changes introduced in the markets the biggest and key being automated and screen based trading. We no longer have oral trading with brokers shouting of quotes, the contracts being all issued by the Stock Exchanges which include all details of thetrades done, the date, time , price and the brokerages, chances of a fraud have been reduced.
There is a lot more transparency in trading nowadays.
Coming to the point of stocks being fit only for the promoters, the rich people and brokers, I couldnt disagree any more.
Who ever said that money making is an easy task, must be joking.
I dont think one can easily make money any where. Earning always requires hard work, being diligent.
If one goes by tips, hearsay, and just blindly purchases some stocks, god only help that person I would say.
I am sure before spending any small amount one inquires in other shops, discusses with otherpeople and only then makes the purchase.
But with shares, all one does, hey, that website mentions, 400% return in a year, let me invest right away, and who cares what is the name of the company and what it manufactures.And once the investment is done, one starts tracking the company expecting profits andcomes the twist where forget the return, the principle starts eroding.
And what do we do, blame the markets, these markets are so bad, not meant for retail investors like me.
Rather than complaint later, why cant one do the research before investing in the marketsbased on the tips.A little diligence before investing will save much trouble later.
Hence dont go by hear say, read read and read before investing
Monday, January 7, 2008
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