How should we judge a government?

In Malaysia, if you don't watch television or read newspapers, you are uninformed; but if you do, you are misinformed!

"If you're not careful, the newspapers will have you hating the people who are being oppressed, and loving the people who are doing the oppressing." - Malcolm X

Never argue with stupid people, they will drag you down to their level and then beat you with experience - Mark Twain

Why we should be against censorship in a court of law: Publicity is the very soul of justice … it keeps the judge himself, while trying, under trial. - Jeremy Bentham

"Our government is like a baby's alimentary canal, with a happy appetite at one end and no
responsibility at the other. " - Ronald Reagan

Government fed by the people

Government fed by the people

Career options

Career options
I suggest government... because nobody has ever been caught.

Corruption so prevalent it affects English language?

Corruption so prevalent it affects English language?
Corruption is so prevalent it affects English language?

When there's too much dirt...

When there's too much dirt...
We need better tools... to cover up mega corruptions.

Prevent bullying now!

Prevent bullying now!
If you're not going to speak up, how is the world supposed to know you exist? “Orang boleh pandai setinggi langit, tapi selama ia tidak menulis, ia akan hilang di dalam masyarakat dan dari sejarah.” - Ananta Prameodya Toer (Your intellect may soar to the sky but if you do not write, you will be lost from society and to history.)

Monday, November 15, 2010

A layman's explanation of our stock market

The other day, my ex-classmate from Perth related to me that some of his ex-students made a bundle from the recent stock market rallies. He has never invested in stocks, let alone speculate on them. As some Chinese would insist, 'ku phiu' (Cantonese for shares) involves the so-called key word 'ku' (bastardized to mean 'guess') which was why the stock market seems like a casino to those who are addicted to some forms of gambling.

I have been through three major downturns, so I was able to relate some realities to him.

First of all, one cannot assume what one has made now will remain the trend indefinitely. When there is a bull run, there is a general rise in share prices which would increase the value of the shares held. There are many factors which can affect the future trends of the share market.

Secondly, you can only count your gains when you have sold your shares. Paper profit means nothing when the prices dropped later. Even if you have realized your gains, so long as you are still in possession of shares, a major drop in share prices could set you back not only to square one, but also to negative territory. For example, you sold some shares and made Rm10,000 and felt elated and optimistic. There are shares which are unsold but which you calculate could realize gains but which you rather save it for another day. If there were adverse factors soon after and your remaining portfolio dropped by a greater percentage than before, the book loss could be even higher than your earlier gain of Rm10,000, and in addition to that, your expected gains also vanished! This is why for those who speculate in shares, their moods swing according to the rise and fall of the stock market.

Of course, there are certain shares which would carry on the uptrend in prices because of their inherent values or whatever that attracted the demand from buyers. But once the shares are sold and gains realized, what are the chances of you finding similar profit-making shares?

We have, over the years, many types of tools which are supposedly useful for stock analyses and choice of stocks that could increase in value. Some even guarantee success. But with the benefit of hindsight, some chartists are no better than this dog...

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