Tuesday, October 12, 2010

Are you still afraid to invest in the stock market? Do you want guaranteed earnings?

A lot of  people are afraid to invest in the stock market because they have heard tons of horror stories about people losing their savings and retirement money in the stock market. TRUE!

Most People Loss Money in the Stock Market

So what's the real score? How many people actually earn money in the stock market? How many poor people lose money in stocks? Well, to answer that, let me tell you about the Pareto Principle or the 80-20 Rule first.


The Pareto Principle states that 80% of what we do account to 20% of our results and inversely, 20% of what we do accounts to 80% of our results. This principle can be amazingly be applied in every area of our lives, the only difference is that the number can become very lopsided such as 90-10 or even 95-5. Some examples of the effect of Pareto Principle are as follows:
  1. 20% of your customers give you 80% of your sales volume
  2. 20% of the people you know give you 80% of you headaches or happiness
  3. 80% of your products are giving you 20% of your sale
Now, how will this relate to putting money in the stock market? This could mean that 20% of the people in the stock market earn 80% of the entire money available in the stocks, which means that 80% of the people actually lose money in the stock market. Now, to test this principle, we need straight facts, right?

So, what is the losing statistics in putting oney in the stock market today? The answer... 80-85%. Wow, that was pretty accurate, isn't it? And this, my friends, is the reason why people are still afraid of putting money in the stock market.

Are You Afraid to Invest in the Stock Market?

However, as I have mentioned in my previous article entitled "Are you ready for the BULL MARKET this year 2011?", you can put money in the stock market either as an investor or as a trader. Most of the people who lose their money are investors who don't know about money cost averaging or are risky traders (i.e beginners or neophytes). I talked about how to do money cost averaging in my previous post which you can read by clicking here.

So, if you want to invest in the stock market, you need to educate yourself by reading investing books or attending stock market seminars. There are a lot of free seminars and paid seminars out there. CitisecOnline offers free trainings to people who have an account with them. Let me know if you need help contacting them. Or if you are really interested, call Ms. Jackie Basbas at +6326365411, +639279616237 or email her at jacqueline.basbas@citiseconline.com. Just tell her I was the one who gave you her contact details because she might be surprised by your call to her mobile number.

I Want Something that is Guaranteed

So, do you want to begin growing your money in the stock market? Or are you still scared of losing your money? If you are still scared, then there are "safer" ways of earning guaranteed money which I will share with you tomorrow. Do you like to know about these?

May you achieve true success!

Bryan

PS1. What does the Bible say about wealth? Is money the root of all evil? Visit http://www.beyondprofit.blogspot.com/.

PS2. If you want to invest in real estate properties, visit www.houseforsalephilippineswithphoto.blogspot.com.

PS3. If you want to get financial literacy training for free, go to www.wealthacademy-philippines.blogspot.com.

Investing Pinoy
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