Stock trading can be a harsh, despairing experience<\/p>\n
By E. Effendi<\/p>\n
JAKARTA (JP): If you have big piles of excess money in your
\nhome, you'd probably want to do just like I do. I invest it in
\nthe stock market, so that I have my money working for me while I
\nonly have to sit in front of my TV all day, wearing only my
\nunderwear.<\/p>\n
Of course you do not have to do exactly like I do, because
\nwhen I said I had a lot of excess money, I lied. But you probably
\nhave a lot of it scattered in your living room, mostly under the
\ncouch, making you eligible to be a potential investor in the
\nstock market and, probably, a patient in a mental institute for
\nhaving too much stress.<\/p>\n
Yes, trading in the market can be a harsh and despairing
\nexperience. That is why before you jump into that unpredictable
\nmarket, first you have to know whether you're really a stock
\nplayer kind of person. If you are aversive to risk, you might
\nprefer putting your money in a time deposit account. And when it
\nis due, you will receive the same old amount of money that you
\nfirst invested, plus a small amount of interest. But then the
\nrisk-taker would say, \"Where's the fun in that?\" By being a risk-
\ntaking stock investor, you can invest your money in a company by
\nbuying its shares in the morning and then you can have the
\nexcitement of losing half of the amount in the evening without
\nknowing how.<\/p>\n
Then, if you have decided to play your money in the fast lane,
\nyou have to find a reputable stockbroker. A stockbroker is a
\nperson that connects you to the stock market, because, for safety
\nand administrative reasons, not everybody is allowed to buy the
\nstocks directly from the floor. In order to be a stockbroker,
\nsomeone must posses certain qualifications. He must have the
\nselling skills of an AMWAY representative to attract customers
\nand the shouting skills of Tarzan to scream, \"MPPA! OK? No? BUNI?
\nTMPA? 70 lots!\"<\/p>\n
Then you might ask how to choose a good stockbroker. Easy. A
\nqualified stockbroker is the broker who can give you the most
\nfinancial tips. Based on the hot tips that your broker collects
\nin some golf games or expensive lunches, which they conveniently
\ncharge as fees, you will eagerly buy those highly recommended
\nstocks.<\/p>\n
However, as time goes by, you will find out that sometimes
\nyour 'sure hit' stock does not perform as well as you thought it
\nwould, based on the fact that now it has less economical value
\nthan your plain wallpaper. You will then complain to your broker,
\nwho will tell you that there are so many tips issued around the
\nfloor and many of them are blown by some investors just to
\ncontrol the motion of the price, or in your case, to drive you
\ninsane. He will give you a long speech about the tips, whose
\npoints are:<\/p>\n
1. You could buy stocks based on the tips.<\/p>\n
2. You shouldn't trust the tips.<\/p>\n
Of course he can not completely understand your grief and
\nconfusion, because no matter what happens, he can still collect
\nhis fee (about 0.6 percent per transaction), which he will put in
\nhis piggy bank. He never puts his money in the stock market and
\nhis company also forbids him from doing that. Apparently, they
\nboth are not that stupid.<\/p>\n
Fortunately, you don't have to only rely on those undependable
\ntips. You can also gather some advice from many reputable
\nfinancial experts. Therefore, if you are not sure about the
\neffect of a national event on your stocks, you can always open
\nyour daily newspaper to read their long technical and thorough
\nreviews, which basically point out that they are not so sure
\neither.<\/p>\n
Those experts never be certain of what will happen next in the
\nmarket. They always come up with many different opinions, and
\nthey never be sure about it. They always use the words
\n\"hopefully\", \"usually\" or \"theoretically\" over and over again.
\nThey never use the words \"definitely\" or \"You can take my house
\nif I'm wrong\". However, they sound so brilliant when making
\ncreative explanations about what has already happened.<\/p>\n
That was what actually happened in the last two months, when
\nmost of the stock markets in the world collapsed. The amount of
\npeople who suffered from that financial tragedy showed us that no
\none had predicted it before. But after it happened, many experts
\nmade excellent analyses about the cause, just as it was so
\nobvious that only idiots could not see it coming.<\/p>\n
They said it started when, after years of monitoring and
\nputting their money in technology stocks, those sharp investors
\nsuddenly realized that the million dollar figures in those
\ncompanies' statements was actually a loss, not profit, which was
\nbad for business. That made them want to cut their losses and
\nsell those stocks right away, which affected all the stocks in
\nthe market, including the stocks in the Indonesia market. Plus,
\nduring this time The Jakarta Composite Index was also pressured
\nby some national unfinished issues, such as the recent government
\nvs. the central bank issue; the government vs. old government
\nissue; the government vs. government officials who were dismissed
\nissue; and the government vs. government's masseur issue.<\/p>\n
Those are the causes that are mentioned by many financial
\nexperts in Indonesia. However, when they are asked about what
\nshould we do now, the opinions are varied:<\/p>\n
1. Buy now, while the price is very low.<\/p>\n
2. Don't buy now, the price could go even lower.<\/p>\n
3. Wait for the technical rebound.<\/p>\n
4. No, I mean wait until I find out what technical rebound
\nmeans.<\/p>\n
Nevertheless, in the end, all the decisions are up to you. It
\nis your choice whether you want to follow the hot tips or the
\nexperts' opinions.<\/p>\n
Me, I will use a more reliable method, I will flip a coin.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/stock-trading-can-be-a-harsh-despairing-experience-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }