Wednesday, September 1, 2010

Sure earn money in the share market?


Is it anywhere to sure earn money in the share market?

Generally, there are two methods in market. It is either Fundamental Analysis or Technical Analysis.
So far, I do not see anyone who using Technical Analysis method to get rich, unless those sellers who sell their technical analysis software to somebody else.

I believe I am not good in programming software, so technical analysis is definitely out of my choice.

How about fundamental analysis method? It is definitely yes and only yes, because there are many people proving it and it is proven. So now how to use this method to help us earn money?

Benjamin Graham did say this before “Stocks do well or poorly in the future because the businesses behind them do well or poorly – nothing more and nothing less”.

It is very important for us to understand this sentence, no matter how high the stock price goes, if it doesn’t have fundamental to support the share price, it will come down one day and vice versa.

So in order to make sure to earn money in market, what we need to do is invest on those sound fundamental securities, the securities must be able to grow in future, so that the share price will also grow together. Always treat it as you are buying the share as you are buying the whole company and cannot sell out the share after that, so you only will be serious on it.

2 comments:

  1. no guarantees in life.. whatever market we entered, the risk is there..

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  2. yeah.. there is no guarantee in life, but however we have to learn to reduce the risk and at the same time create the oppotunity.. :)

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