Tuesday, May 6, 2008


Speculating in share market

In the materialistic society, everyone likes “speculating”. It equals to you had pay little but return are bulks. It was help you can accumulate your wealth growing up without hardworking.

People feel bore and tire, if you insist people wait in long period for their investment in the limited lifetime. Hence, sometime speculating is necessary.

Speculating activities never ending in the shares market. Thus, it would not surprise why still have a lot of fund manager made the wrong investment decision, although they have been well training on risk management before step in to share market.

“Where is higher or bottom?” Every investor everyday also asks, wish and hope could buy in low price. On the other hand, always assume that holding shares can be sold at the high range. After selling, wish the said share would not touch another higher price.

Fund manager and share market writer advised everyone do not speculating in share market. But in my opinion, investment of shares 100% is speculating. Of course, these theory may bring a lot of people penalise me. Especially those people are hate on gambling and classified share market is investing. I indicated dealings/activities in shares market is speculating indirect pointing them was gambling. These people would not happy my comment and denied the share market is a place of speculating. But blame me does not change the actual situation in share market.

I am an ordinary human, I do not have any power to change the essential/basic of share market. I also do not like to change it.

I highlighted share market is a speculating place, because while your are buying the shares, your investment attitude has brought

a) You use a short cut way to be a shareholder. Founder of company used more than 10 years to build up a business activities in the company. You only spend about few seconds or minutes already registered as shareholder.
b) You never hardworking in this company and no contributing any effort in the year. Now you only registered as a shareholder, but every year enjoy the same rights like other.
c) You enjoying a lot of assets in the company by little money. If you use same funds to purchase the said assets, it is impossible or not sufficient.
d) You can ignore your experience and education. If yourself need to manage one company, at least your must spend several years to learn some skill.

The above illustrating activities of trading shares direct remain you. Buying shares actually ignore a lot of hard way to become a boss.

Professional or fund manager always remain you do not apply speculate strategy method for investment of shares. But they are learns from research knowledge actually covered by speculating education. If there are never speculate, they will not advise you: -

1) If drop buy in.
2) If high sold off.
3) Ignored bad stock, buy in good stock.

The above action indirect guide you use speculate strategy to handle your share in hand.

On the other hand, if you think share market do not has any speculating issue, you should use all your saving consistently buy in all shares and should ignore: -
1) Working experience since your are born
2) Any education in your life.
Because share market provided you enough funds has a peaceful and enjoying lifetime forever.

But I aware that if your are investors in shares market, your are not consistently buying, you must have some education and need to hardworking in your life. Hence, your are actually admitted share market consist a lot of speculating issue.

I am not claim the funds manger or investors are wrong but does like them always insist they are investment and not doing speculate. It could bring a wrong message to ordinary people and guide them use the wrong method to handle the share investment.

If any people or funds manager claims that the investment of shares does not have any speculate issue. Please ask him the following question.

“Why he is wasting time and money to deliver his kids to school?”
If he claims that share market not speculate issue. He could actually ignore the education period for his kid and immediately give the said money to kid for investment of shares.

Hence, my conclusion is while your are first stepping into share market. Actually you are start involving in the speculate activities. Always remember game has its rule and share market also has its own rule. Hence, be a good investors must “well know meaning of Speculating”.

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