Don't take it too seriously

Blogs are like a diary and journal. It records a person's development in terms of mindset, spirit and emotion changes; Reading them is somehow like reading other's stories but reminds myself who I was and am and what I have been seeking and how to improve in the future...

19.11.06

There is no ever-increasing or ever-decreasing thing in the universe. Things are always searching for a stable condition. The global stock markets follow this inalterable law. In fact, to be too optimistic when the stock market is bullish or too pessimistic when it is bearish seem to be all dangerous attitude which may mislead you and eventually to cause a financial suffer in the ever-fluctuating stock market.

As far as I know, many people in Hong Kong during office hours dabble in the stock market, due to the convenient online or telephone services. It has become an 'open secret', just no one mentions it. According to the latest survey by one of the parties in HK, on average, one out of five Hong Kongers has more or less investments in the thriving stock market, meaning, the majority of adults believe this is the best way to make a fortune. They seem to forget that the market will not be rosy all the time. Investing in stock market is the most dynamic, risky business since stock prices fluctuate every day, going up and down according to the economic or political climate. Furthermore, history tells us that the stock market will come to its most vulnerable moment when most companies' prices are increasing abnormally.


As minor shareholders, what they don't want to see is having to bear their ruin as philosophically as they can. What can they do to protect their precious, so limited treasure from evaporating overnight? How can they get a breakeven or get what they invested at the worst conditions? Or how can they employ the fluctuation in prices and make a profit when the market ebbs and flows? According to many victims of stock market, the golden rule to avoid a financial ruin and get reasonable return is "Don't take the market too seriously when it is down and too greedy when it is up." Greed only ruins your life.

Here is some practical advice -

Have a sensible financial planning, it means not throwing all your savings into the stock holding business.

Keep a certain amount back so you are able to take the chance to purchase promising stocks at the low tide.

However, experience has proved that if you are a long term or rather conservative investor, you don't need to bother too much about the fluctuations every day. Find some first-rate companies to invest in and you can rest assured that in the long run, their prices will rise. Nonetheless, you always have to reserve some money for emergencies.