Can You Make Money from The Stock Market?

12th July 2017
stock market image of a girl and trendlines

Playing the Stock Market

If you invested in the stock market in the past 10 years, your capital would have appreciated by over 200% if you bought Nestle shares.

Chart of Nestle stocks

Comparing this with Forex, taking EURUSD as an example, if you were able to short it for the past 10 years, your capital will only gain 30%. If you took a long (buy) position on EURUSD your capital would have depreciated by over 30%.

Chart of EUR/USD currency pair

It is possible for real wealth to be generated through the stock market. In Forex you can only profit through margin trading. However, if a stock trader also used their margin trading they could further multiply their profit even further than a typical Forex trader. Most Forex broker will only offer an illusion that trading the Forex market offer massive financial return whereas in fact you are actually trading through borrowed money from the brokers. The brokers actually profits more than the Forex trader.

Now let us compare the stock market with the get-rich-quick scheme offered by the Ponzi operators. Will your money last for 10 years with companies such as Dinar and the recent MFace that promises handsome returns every month? Most of these get-rich-quick scheme companies have disappeared into thin air, as their financial business model was not sustainable and in fact, not real. They need fresh funding from new investors to payout their existing investors or depositors. Eventually, it will collapse as time goes by.

To Be Successful, Seek Knowledge

In any task you want to do, one needs to have some sort of education and training in order to equipped with the right knowledge in order to be successful in that particular task. For example, none of us was born to be a pilot. In order to become a pilot to fly an airplane safely and successfully securing a career with an airline company, you need to attend proper flight training school and pass the appropriate flight training test and paper examinations. And this will not happen overnight. It takes times, usually several months to several years.

Getting a mentor

The same thing applies in the stock market. You need proper education and training and most importantly train with the right mentor. Referring to the pilot story above, you cannot learn to fly an airplane simply by watching videos on YouTube. A mentor is a must if you wish to be successful in the stock market, who provide mentorship according to your level of study. Your mentor should grasp how quick or slow you can digest the knowledge to be successful in the stock market. A mentor will guide you through the mistakes that you may make whether you realise it or not.

Most of the newbies in the stock market try to avoid the need of mentor; with an objective to reduce the entry cost by skipping to pay the cost of mentor. Instead, most newbies choose to pay for e-courses and/or e-books or subscribing to stock signal service providers. This in turn, will be an expensive trap that is more harmful than it looks. Newbies will eventually experience losing trade after losing trade, eroding their hard earned cash on a daily basis or even in minutes! Soon emotion kicks-in to take revenge on the market, and the newbies will most likely lose their entire capital in a very short time.

So get a mentor, and the investment really pays off if you chose the right one. It may look expensive, but it is an important investment in your education. Seek as much knowledge as possible before you really trade in the stock market, and try to find the right trading or investment style that fits you along the way.

Wealth Creation Through Facebook

If you arrived on this article through Facebook, let us have a glance at how Facebook shares performed so far since their first IPO. You certainly would have made money investing and/or trading Facebook shares, don’t just simply post your status but profit from it. Most importantly, be part of Facebook’s shareholders.

Chart of Facebook shares

The above chart shows the Facebook shares since they listed at the NYSE to date. If you bought Facebook shares since the beginning, you would have already gained a massive profit of over 276%. Now, let us have look if you just started buying Facebook shares this year – 2017.

Chart of Facebook shares in 2017

Since the beginning of 2017 to date, you would already profit by over 31% simply by buying Facebook shares. If you only put your money in a bank fixed deposit account, getting this kind of return is simply not realistic. But the reality is, it is possible to do so in the stock market. Ever asked yourself how and why Mr Zuckerberg become a billionaire at a young age? This is one of the financial vehicle to achieve that – the stock market.

The next article we will learn how to own a multi-billion dollar business without the headache and hassle of running it, while earning massive profits.

Disclaimer: This article is for information and illustrative purposes only. It should not be regarded as “investment advice” or as a “recommendation” regarding to take action; financial or otherwise.
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