No more trading, not going to be a trader ever

I should stress this point on my blog, that we should always INVEST in the stockmarket, and never TRADE. I might have missed the point, but I will stress it again. NEVER trade, never ever ever EVER trade. Unless you don't want your money, of course. Then you can just give it to me. I wouldn't mind investing it on your behalf.

Today, the sharemarket game has commenced its thrid day of trading. I was happily making money for 2 days in a row, when suddenly my net wealth has been pulled down past the beginning mark because of a small market drop today. Due to desperation, I started trading. My focus was short-term. Part of the desperation came from the fact that some stocks I already held were based on speculation. So when the market dropped, I panicked, and started selling. I bought, sold, bought, sold, until I had incurred a high brokerage fee already.

I've learnt my lesson. Luckily this is not with real life, never ever trade. The meaning of trading is going for a share based on a 'hunch' that it will go up or down but with no real fundamentals. Unless I am REALLY, REALLY sure about a share only would I buy into a speculative situation. But I don't think I can stress this enough, to my readers and to myself. Never trade. I heard about one person who put a million dollars in the sharemarket into a speculative situation and within days he was down to $150,000.

Another good example would be of my good friend's dad. He bought into a stock whom he did not even understand, but he bought it because his friend told him to. From a few dollars the share price dropped to a few cents. It never recovered. Trading is for those who are impatient and just want to get rich fast. They rarely achieve their goals. Only those who are truly chosen to be the lucky ones make it through.

I am sure with all the sharemarket education I have received I can do better than obtain negative returns over time. So why do I need to trade? Good question. I don't. For those unexperienced yet, listen to me for your own sake. Never trade.

Point made.