I have a friend who was in some way lucky because he started to invest on the stock market exactly in the moment when the markets have reached the bottom and started their move upwards. He didn’t know much about investing on the stock market and it was purely luck that he has joined in this moment. That was around February 2009. Most of the stocks were strongly undervalued and it was not really important what you buy.
Of course there was always uncertainty about the economic situation after this big financial crisis. But in general investing at that time was carrying low risk. Even if the markets continued to fall further they would not go down too much anymore.
Let’s come back to my friend. He didn’t know much about the stock market but he started to make good money. He watched business news and he listened to advice given by the specialist who were expressing their opinion on tv, on internet etc. Apart from this, he used help and suggestions from the stock broker who was making the operation on his behalf in the bank. Of course the advice from the broker wasn’t done officially because he was not allowed to do it. It was based on trust that he knows it better because he was in this business already for many years.
As I said before my friend started to make really good money on his investments. Sometimes he made wrong investments but in general the balance of the few months was very positive for him. He got encouraged by it and started to invest more of his own money on the stock market.
I spoke with my friend about 1 year later from the moment when started to invest on the stock market. He told me that he is not in positive anymore. The loss was not big but still he was in the negative. Of course this loss could have turned into profit anytime because he was holding open positions on some stocks and he hoped that they will go up and he will be with the profit again. At the same time he was mentioning shy that he will stop investing on the stock market when he turns into positive territory.
At that time it looked to me like he has learned already that the stock market is not a machine for printing free money and it is easy to loose money as well. So he made a shy decision to retire from the stock market. But the time was passing by and he was still behind. His broker advised him few times, that certain shares will go up for sure and my friend decided to put more money because he believed that with this transaction he will be able to make profit that will cover all of his losses and he would then be able to retire as he was telling me before.
Unfortunately the advice from the broker was not successful and he also lost on this transaction. He was becoming more and more annoyed by the situation but he didn’t want to retire with the loss in his pocket. So he decided to wait until he makes some profits.
Now we have August 2011 and my friend still hasn’t retired from the market. And now he was forced to see the heavy losses that are happening on the stock markets. He is not thinking anymore on how to make profit but how to minimize his losses. He is completely out of control and doesn’t now what to do.
CONCLUSIONS
1. The situation of my friend is very similar to many other people who invest on the stock market. Depending on the moment in which they begin to invest ( which is rather a pure luck ) they can make some good money. But usually later they start to loose it. Of course if they were lucky to start in the right moment, then they will stay positive even if they made some losses later in the future. But as I said in many instances this is a matter of luck ( in some way similar to the casino ).
2. My friend was lucky to start to invest exactly in the moment when the market reached the bottom. Over the period of 2 years and 4 months the main stock market index has risen around 130 %, but despite of it my friend was still on the minus and when the sharp falls have begun in August 2011 he is loosing even more of his money.
3. The professional advisers and brokers have much more experience in trading then normal people but this doesn’t mean that they really know how and when to invest. My friend has listened to advices of his broker and on many occasions he has invested wrongly and lost his money or he sold his stocks too early and missed an opportunities to make big profit. And as I said before it was done because of the advice from the professional. I have also found out later that the father of that broker has also lost money because of his son’s advice. I know that somebody could say that this was just because this particular broker didn’t know how to invest. And I will say “no”. This is happening daily with many other brokers. When it comes to professional financial advisers you pay them commission for their services and you expect the results from them. But you know what ? They are not gods and despite their knowledge and experience they cannot control and predict all that is happening in the world and could affect price of the shares.
4. Apart from this they are never responsible for the results. There is always a
clause in the contract that you sign with them before you start using their services that they are not responsible if you loose money. In some way this is fair. But at the same time they ask you to pay them big money for their services and they have “zero” responsibility for it ( pretty damn good job!!! ).
5. The professional investing companies are luring people by promising them big profits and security of the investments. They present beautiful charts to people on how they multiply money. But this is only happening when the whole market is going up. When the market is going down you will loose money in the same way as everybody else. And it doesn’t matter that those companies employ the best specialists with years of experience. But even though you will loose your money, those companies will make profits for themselves because you are paying them commissions that are not based on results. You pay them commissions for every transaction that you make. And if you loose your money it is not their responsibility. If it happens that those big investing companies in some way start to loose their own money and they are in danger of bankruptcy then they will get help from the government. And again you will loose your money because government will use your money that you paid in form of taxes.
6. Even though there are strict regulations and laws that prohibit speculations and market manipulations, this is happening daily and nobody can do anything about it. How could anybody be so naïve and believe that there are no manipulations on the market ? Look at the humans and see how greedy and obsessed with money they are. They are ready to do anything for money. Stock market investments give a possibility to make huge money if you predict the movement of the market. It is rather impossible to predict every movement of the prices on the stock market but it is possible to control and manipulate a lot of things that influence the direction of the market. And when it comes to big money there are no limits in it. The crisis that is happening every few years is most of the time planned and organized cleverly by those who are in control of big capitals. There are many indications that the attack on Sept 11, 2011 in New York was organized not just by Osama Bin Laden. There was a lot of strange transactions going on the stocks markets prior to this date, which indicates again that it was organized by guys who control big money. Because who cares that some few thousands of people die. For them it is important that they make more money. And I don’t have to prove anything that Sept 11 was organized in this way. For me it is enough to see that people are greedy and quite often they are able to do anything to get more money ( even to kill ). And based on the knowledge of human psychology I know for fact that market manipulations and speculations are unquestionable fact.
There is a possibility to make money on the stock market. But I doubt that anybody is doing it with the intention to do it in a way that is best for all. All is based on egoistic goal to make profit “no matter what”. The consequences of such a behavior are easy to see, yet everybody is turning their head away from it because people are obsessed and interested only in making more money and it doesn’t matter how. They explain themselves that everybody else is doing the same so it must be normal.
Equal money system would give everybody opportunity to live like a millionaire ( or even better ) yet hardly anybody wants to know about it and they continue this madness and craziness believing that they can get rich quickly by investing on the stock market.
www.desteniiprocess.com
www.desteni.co.za
www.equalmoney.org
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