ArticlesReader.com Menu

Newest Articles
Most Viewed Articles
ArticlesReader.com RSS
Submit Article
Login
Signup

Search the articles

Articles Main Categories

Advice
Animals
Automobiles
Business
Career
Communications
Computer Programming
Computers
Entertainment
Environment
Family
Fashion
Finance
Food
Health & Medical
Home & Garden
Humor
Internet Business
Internet Marketing
Legal
Leisure & Recreation
Marketing
Other
Politics
Reference & Education
Religion
Self Improvement
Sports
Technology & Science
Travel
Writing

Subscribe

Receive alert message from us when new articles submitted to our site for free.

Syndicate

Related Products

Home::Writing

10 Simple Rules to Make You Serious Money in the Sharemarket

Author : Joseph Sgro

Don't Fall in Love with You're Stocks(Collect a Free EBOOK - see website)

It appears that I have a dislike for admitting that I could ever get it wrong and this explains why I sometimes can't take a loss. On the other side of the equation: if I was wrong and XYZ was not going to make me a fortune - then what could I do?

Okay I spotted one of my stocks in the "Shares" magazine - I confess! I was just reading about all the up-and-coming stars and there was this little snippet asking a question like: "Could this be a new Microsoft?". Now they may not have said that exactly, but it was enough to make me think XYZ was a good news story as its price will testify - at the time(in the 70's ). I mean it was there - it had to have some merit!

It was a miner and had a technology company in its portfolio and a percentage of another tech company and was doing very little in the resources area because there was more hype in tech shares at the time. It was a time when many miners were turning into tech companies. Can you visualize the miners making their way to the goldfields?

Well I was right into that - so I bought heaps and the crazy part was that I was not going to sell something that had such a great future. Nearly $60 000 went into this company and I've still got it. Not because I am still in love, but because it's nearly worthless. It will be a reminder to me never to do that again!

How much is this RULE really worth to me? That's simple - without counting any other stock in my tech-wrecked portfolio, this RULE is worth $59 494.45 saved.

If I just add one more, an online retailer, which cost me $69 928.20, my total saving would be $129 422.65. So if someone had given me the above rule to live by, I could have sold out early and kept most of $129 000.

The unloved by the market, which included many of my startups have plummeted since the tech boom - some went up like shooting starts, only to be blasted to pieces and fall back to Earth. You won't get directors coming out to say that the market has put an outrageous price on this company or that one, and that really, there is no substance to back up the price. However someone will notice that the king is really naked and when they do there is no mercy from the crowd.

I have heard say, "The market is always right", and maybe it's not a bad one to remember. Those that didn't participate in the tech boom will have lost considerable money and those that fell in love with the naked royalty will have lost their shirts.

Does it hurt? You bet it does! It hurts every day, but it will get better one day - I hope! It was a great experience, even though it was a painful one. Now it is you, the reader, who stands to benefit from my mistakes; which increases the value of such insights and will make this book probably the most treasured book about the market's affect on individuals' psychology and an awesome reminder of the pitfalls of sharemarket speculation.

Do I think that I'm the worst case? NO WAY!! You only have to look back in time to see what companies, underwriters and well-established financial houses paid for software companies and internet security companies - even our beloved Telstra(using the taxpayer's wealth) suffered its billion dollar nightmares, not to mention News Corp's businesses going bust. The bigger they are the harder they have fallen: Enron, Vivendi, Worldcom and others handing over billions as if there was no tomorrow. Well now the penny has well and truly dropped as these huge gorillas fight for their survival under a pile of debt and scandal. Nope...I'm in good company. The scandals and falls since June 2002 have certainly been enough to scare me. We live in hope that we don't end up with a depression and that the losses of up to $US8 trillion at the time of writing, are finally stemmed without bringing the whole financial system to its knees.

How many lucky devils bought News Corp at $26 and how many have watched the decent to $8.46? Losing $12 billion in one year only makes people want to own it, pushing the price from below $9.50 back up to above $10.50.

The market lurches from drunken stupor to bottomless pit of despair - it's easy to get it wrong on any day!

In sharemarket trading you live and die by your trading plan - so experiment by all means but at some stage you will need trading rules to live by. The market can leave you behind. It has a way of changing faster than you can. It does its time as a bull and then becomes a bear and in the same breath will do an about face and scream to a high, leaving your position in the red, when everything you know tells you that the market for that stock should not behave that way. You keep screaming ...BUT IT'S A LOSER!!!!!! Stock punters just ignore you, pushing the dog of a stock higher, after losses counted in billions of Australian dollars and a weaker quarterly profit. Who really cares? Emotion carries the market higher until once again the profit takers come in and sell the highs.

If you have enjoyed this discussion...there's more....and the content is not specific to any one country. You can apply these ideas.

Please visit: http://www.tutorhelp.com.au/sharemarket.html

Get interactive with our Ezine "Request": 10simplerules@tutorhelp.com.au

Happy Investing,
Joseph Sgro
The Author

About the Author

Joseph Sgro was born in Western Australia with a hunger to become a millionaire(a Wild Colonial Boy at heart).

Classroom teacher with 15 years and sharemarket trading experience of 16 years culminated in a portfolio of over $700 000 and a serious turn for the worst in March 2000.

This turn of fortune gave rise to much analysis and a desire to learn what went wrong.

Spam emails More free articles

More related feeds

Stock market trading
Day trading is nothing to fool around with unless, of course, you have money to burn. If you’re serious about trading, make sure you don’t fall in the trading “hobbyist” category because you’re chances of trading success will be minimal ...

10 Simple Rules to Make You Serious Money in the Sharemarket
Now it is you, the reader, who stands to benefit from my mistakes; which increases the value of such insights and will make this book probably the most treasured book about the market's affect on individuals' psychology and an awesome ...

10 Simple Rules to Make You Serious Money in the Sharemarket
Don't Fall in Love with You're Stocks(Collect a Free EBOOK - see website)It appears that I have a dislike for admitting that I could ever get.

10 Simple Rules to Make You Serious Money in the Sharemarket
In sharemarket trading you live and die by your trading plan - so experiment by all means but at some stage you will need trading rules to live by. The market can leave you behind. It has a way of changing faster than you can. ...

10 Simple Rules to Make You Serious Money in the Sharemarket
It appears that I have a dislike for admitting that I could ever get it wrong and this explains why I sometimes can’t take a loss. On the other side of the equation: if I was wrong and XYZ was not going to make me a fortune - then what ...

10 Simple Rules to Make You Serious Money in the Sharemarket
It appears that I have a dislike for admitting that I could ever get it wrong and this explains why I sometimes can't take a loss...

10 Simple Rules to Make You Serious Money in the Sharemarket and ...
Don’t Fall in Love with You’re Stocks(Collect a Free EBOOK - see website) It appears that I have a dislike for admitting that I could ever get it wrong and this explains why I sometimes can’t take a loss. ...

10 Simple Rules to Make You Serious Money in the Sharemarket
10 Simple Rules to Make You Serious Money in the Sharemarket Don't Fall in Love with You're Stocks(Collect a Free EBOOK - see website) It appears that I have a dislike for admitting that I could ever get it wrong and this explains why I ...

Blackjack betting strategy. A blackjack tournament betting ...
With a solid playing and betting strategy you will make your money last longer and the solid blackjack strategy is all about discipline and knowledge of the game. Optimal strategy blackjack chart system of optimal strategy blackjack ...

How to Make Money in the Sharemarket
Further this discussion by reading: “10 Simple Rules to Make Serious Money in the Sharemarket and Keep it!” http://www.tutorhelp.com.au/sharemarket.html. For more articles: http://www.tutorhelp.com.au/articles.html ...

10 Simple Rules to Make You Serious Money in the Sharemarket

Related articles