the reason I can’t speculate & get rich in a blink
the complete tittle is, I know it’s too long,
“the reason I cannot speculate and get rich in a blink by investing in stock”.
Answering Oskar reply in one of my post, he advised to invest in technology stock for 2-3 weeks, then I suppose after that, I shall sell those shares.
As a small investor like me, I can’t play with the market. Investing in tech stock could be interesting, when you know its move, the latest news about new tech product, etc., apart that in general, stocks are volatiles (means risk).
I’m a worker, I don’t have enough time to track all news/rumours about the markets or one stock in particular at the same time the price is up or down, beside I don’t use personal broker to advice me.
So forget about getting cash fastly from investing, at least for a person like me.
If I had to invest in that short term (let say in a month), the stock price I bought must be rocketed a lot!
As I say, every transaction cost me 15 euros + 0.25% on cash (they don’t charge me for custody nor dividend), this really isn’t that cheap. The stock price has to be running up fastly if I have to sell them in a month to cover 30 euros + 0.50% on cash - cost. And I don’t think there is such an opportunity- I don’t follow the market minute by minute.
One example, my mistake (or maybe not- let see about that), my stock in tech sector is doing pretty slow, due to uninspiring quarter result of the company plus a problem in technology it self in their product, and finally, due to economic slow down in US that effect technology sector (less investment in technology).
What should I do now? I bought the stock cheap enough, but now it prices is getting down. Of course I don’t sell them because I’ll loss if I sell it at lower price that I bought, secondly I loss money from the comission they’ll (bank/broker) charged me.
What I do is wait, a couple of months, see if the price gets better and then sell it (even if I don’t like this option, I’m still considering it). Or I could hold on to them and considering it as a long term investment, say 1 or 2 years.
My principle is that do not sell your shares when it’s cheap! and do not let your self influenced by a temperamental Mr. Market (that’s what I learned from you know who).
There is another way you accumulate stock by buying it part by part, but I don’t agree with this.
First because of commision that they’ll charge you, you must remember that every transaction has a cost. So I think it’s better to buy it in one time. If I have more money, I guess I won’t buy the same stock (not if the price is undervalued/best priced), I’ll consider other stocks from difference sector.
As I say, I’m still learning, I could make mistake, but I manage to make it the least, I hope!

yeah…keep going my sister
Comment by Hedi — August 23, 2006 @ 12:59 pm
SORRY READER, I FORGOT TO ADD UP ONE THING, TAX! maybe in Indonesia there is no such a thing in stockexchange, but here, as long as I know, if you keep stocks less than a year, the selling of your stock could cost you more than 15% tax (that could be until 20%, I don’t know for sure..), maybe to avoid this, after selling them, you must reinvest it again to avoid paying tax.
Comment by nagasundani — August 23, 2006 @ 2:52 pm
Good luck with your new adventure. I’m impressed by your decision to start playing in stock market. I’ll be following your journey, that definitely be an interesting one.
What do you think about getting an informal advice from a friend who works in financial institution?
Pipit, yes that would be a great idea. But I think first you should study how the things works, what you want to achieve, etc. before you’ll get started. Maybe your friend can recommend what kind of investment suit you.
Comment by Pipit — August 23, 2006 @ 3:29 pm
I misunderstood a comment from one of your other postings … and assumed that you lived in the US. My bad. You probably live somewhere in Europe. In that case, please disregard my earlier comment about 401(k). But I still suggest you to take a look at any retirement plan offered by your company. All the best.
Comment by $ugi — August 24, 2006 @ 5:50 pm
$ugi as I said, I’m still learning. Retirement plan offered by a company is not always a case. In Spain, we pay social security that supposed would cover your retirement plan.
So maybe you should “do your homework” (as you told me) before responding somenone’s post, I suggest!
Comment by nagasundani — August 31, 2006 @ 2:35 pm
#5. Ha .. ha … I should have paid more attention, that’s true. Thanks for the comment. But when I said “do your homework”, I really meant it in a good way. What I really wanted to convey is, before putting your money in any investment, get to know about your investment by learning it as much as possible. And that’s exactly what I suggested in my 1st posting, which I don’t know where it went since it doesn’t appear here. But I suspect it did reach you (since you were quoting the “do your homework” phrase). If you still have my first comment, please re-read it. I really meant to offer you honest suggestion. But if you don’t feel that way, then my apology.
Comment by $ugi — September 2, 2006 @ 12:23 am
well I guess you missunderstod my posting. I was answering Oskar’s comment, that investing in technolgy stock for 2 or 3 weeks and I dissagree with his opinion…
thanks for your suggestion.
Comment by naga — September 3, 2006 @ 10:11 am