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| How to invest in stocks: little knowledge is dangerous |
Little Knowledge is dangerous if you want to Invest in stocks without attending any seminar on stocks from authorized/certified facilitators.
No matter how educated you are and if you don't learn how the stock market works and you just walk into the stock market to buy shares with worth of thousands, hundred thousands or a million dollars, little Knowledge is dangerous.
The Danger Of Little Learning From The Stock Market
Little Knowledge can swallow all you have to invest in stocks. Little knowledge can change the rich into the the pauper if they invest in shares without learning the basics of the stock market
Little Knowledge can change your abundance you make profit from your business or you earn a high pay from private/public work into bankruptcy.
Little Knowledge can weaken or lame your financial strength. Little Knowledge from the stock market can change your financial smile/ happiness into financial sadness or worries.
Many ignorant people thought the stock market is not risky. No wonder, they lost thousands, hundred thousands to smart investors daily from stock market.
Do you not know that little knowledge happily dances if you ask, Where to invest money to get good returns because she wants to swallow your worth of thousands, hundred thousands or millions?
She knows that you do not want to pay to acquire basic knowledge from another facilitator or you do not want to learn how the stock market works.
That is where she is happy and plans to take away your worth hundred thousands from stock market and make you poor again.
Let me share with you this case study and see if you are one of them who ask Google or Quora or your friend(s) who is not a real investor: 'Where to invest money to get good returns daily?"
The story of Kalu's case is old because it is 2008 I read a long time ago. But it is good because there is a great lesson in this story as an example to any beginner who tries to ask where do they invest.
It is so worth that I want to share with you this article. Go and enjoy this lesson:
Case Study: Little Knowledge Wipes Away Kalu's Worth Of 25 Thousands Dollars
"Kalu achieved over 50 thousands dollars turnover in his bank account as he calculated how much he mads from the import business through the record of sales.
He was happy at that because he made 60 thousands dollars turnover in his bank balance which he intended to reinvest in the business.
His personal reserve had grown up to 25 thousands dollars, money he could play around with, used for luxury, bought a new car or to do whatever he wanted with.
But after thinking about what to do with the money for over two weeks, he came up with options. The first option is that to keep the money in his account till December 2008 and spend it during the festival period in his village, he intended to paint the village red with splendor.
The second option is that to find something to invest it so that the money could multiply, in doing this, he could still have his reserve intact and only spend the excess returns from his investment.
Who knows how the business climate will turn out next year; 'at least I should find something to fall back on', he said to himself.
So he decided to ask his friend, a colleague in business, where he thinks he should invest his 25 thousands dollars and still gets returns to enjoy his Christmas time.
The friend remembered how good the stock market was doing because he heard how a lot of people were making hundred thousands or millions investing in shares. So he asked him to put the whole money into the stock market.
kalu had no time to ask him any questions. He just went and found a stockbroker who made choices of stocks for him to buy it. He immediately placed a buy order after completing his registration and Investment account opening.
It was not too long after kalu had invested all his personal reserve in the stock market that the boom in the stock market had started reversing.
Initially, the stockbroker told kalu not to worry because it is normal for the market to behave that, and the market will bounce back in a short while.
But all the stockbroker encouraged Kalu had died because there was no recovery after many weeks of promisess which were not fulfilled.
Finally, kalu resolved to confront his friend who gave him the advice in the first place. A meeting was scheduled at his friend's place at home.
The wife of Kalu's friend was really interested in the discussion, but she heard what happened to kalu in the stock market.
And she backed out and retired to her room, leaving between her husband and his friend to resolve their issues.
But she heard the scream of kalu to the friend: "Awalamoh!- You have killed me".
Kalu's worth was now less than 800 hundred dollars in the stock market from 25 thousands dollars.
All the shares he invested had crashed and were still falling with no signs of recovery and this was just a few weeks into his proposed exit from the stock market in November when he intended to enjoy his harvest for Christmas time."
What a great crash. How wrong he made because he followed his friend since he himself was not a real investor. This is what little knowledge or proud ignorance killed him.
It is not his friend that killed him. But his arrogant ignorance did it because asking his friend a question, where can I invest money to get good returns daily has killed him in the stock market.
You see, kalu's worth of 25 thousands dollars was wiped away from the stock market, leaving him with only 800 dollars if he exited for Christmas festivity to spend himself enjoyedly.
May be he was recommended to buy expensively each. That is the reason his worth of hundred thousands was bitten away quickly.
3 Great Lessons Learned From This Case Study
There are some lessons I would like to share with you this article.
Lesson 1: Never ask a question where to invest in shares to get good returns daily. Only ask where I can learn how the stock market work.
They may spot you to the successful stock expert or authorized certified facilitators on stocks.
Lesson 2: Never depend on stockbroker's hot recommendations/choices on stocks to find to buy unless you know much about companies and their products/service and as well the economy.
Not all stockbrokers are real investors or successful trades in the stock market. Be careful how you follow their recommendations to choose to buy hot if you don't analyze it yourself mathematically.
Lesson 3: Go and pay for knowledge to acquire enough. There are different tools you need to learn about how the stock market works.
There are other tools you need to know much about mathematics you can use to play smart in the stock market..
Final Thoughts
Investing in shares is not risky. The stock market may not be risky. But lack of understanding how the stock market is so risky.
I hope you enjoy this article? Stay tuned with us as a subscriber for more updates. Pls forward this link to people on social media and they may find it useful.
Happy viewers.
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