Huh?
This is a new type of opportunity cost. LOL!

huh?
no wrong price?

Can just buy any good stock at any price and just hold the stock?

So gark, I tell you stocks is so easy to make money.



This post has been edited by Boon3: Mar 12 2015, 08:32 PM

I did fake trading for many years ........

Yup, I'm serious. As long as the fundamentals are good and stay good you won't lose money. If you get a good price you will beat FD, if you get a bad price you will lose to FD. That is the worst risk if the fundamentals remain sound

Let me put it this way : the bank is willing to lend you money with those shares as collateral. Do you think they would do that if they thought they'd not make money long term from it?


This post has been edited by wodenus: Mar 12 2015, 08:36 PM

if I'm not mistaken, they would only lend you up to about 70%+++ of the value of your pledged Blue Chip Stocks

Doesn't apply to normal stocks of small companies.

This post has been edited by shankar_dass93: Mar 12 2015, 08:44 PM

Its still green so i guess ill sell it off if it drops and minimise my amount of profit.

Sorry but I seriously do not agree with you at all and I am absolutely amused and bewildered by your definition of opportunity cost.

Yea well wasn't talking about small companies. Do small companies even have good fundamentals anyway.

Opportunity cost is what someone losses/not being able to choose anymore due to what he has chosen in his current act, right ?

Example, having 10k and dumping it into FD prevents you from using that same money and investing it in stocks and being able to generate a higher return

Quote from boon

Well how does one know that when one invest in stocks, one will EVEN make money?

From http://en.wikipedia.org/wiki/Opportunity_cost :



Say you have 10K spare cash. You can choose to keep it in FD or invest it in the market. Say FD rates are 3.5%. For simplicity's sake let us assume that the 10-year average FD rate is 3%. So at the end of 10 years in FD, you would have made a little more than 30% (if we consider compounding as well.) We'll just say you will make 30% to make things easy.

Now suppose your investment ends up making you 15% average in that ten years. This means you didn't lose money, but instead made money right? but that's only 15%.

So now we compare FD and investment, and we can see that we made the wrong decision, even if we did make money, because we would have made 15% more with less risk.

This 15% that we lost is called opportunity cost.

So you can see that if we invested the money, we didn't lose money, but we "lost money" compared to FD.

We always assume that we made the best choice, but only time will tell whether it was really the best choice. If it turns out that we didn't make the best choice, then we would have lost the money we could have had if we did make the best choice.

This money that we "lost" is called the opportunity cost.

This is also what I mean when I say, if you invest at the wrong price, and it's a good company with solid fundamentals you won't lose money. You might "lose" money compared to FD, but the ringgit value of your investment will pretty much always be higher.

This post has been edited by wodenus: Mar 12 2015, 09:12 PM

what i meant was that when you do one thing, then you can't do something else due to restrictions.

Placing your money in fd prevents you from investing in stocks. Winning or loosing is a different story.

bro, what do you mean by fake trading ???


and all of sudden so many sifu start to discuss about opportunity cost ..

Eat too much WontonMi is not good for health



http://www.theedgemarkets.com/my/article/b...-wintoni-shares

This post has been edited by Le Don: Mar 12 2015, 09:19 PM

Gambling is luck.. investing is not so much dependent on luck. We have less than 10% of total net worth invested in equities. We can wait.. show me a company with continuously good fundamentals which has actually lost money long term.

Yes, I understand that if you do one thing, it will prevent you from doing others....


Placing your money in fd prevents you from investing in stocks. Winning or loosing is a different story.


Well... exactly.

the point is simple: winning or losing is a different story.

If that's the case.... how do you define it exactly as an opportunity cost?

LOL!

I dunno how cos when I trade a stock, I never will have the balls to say I will win cos there's a chance I could have screwed up my reason to speculate and trade the stock wrongly.

Paper trade my friend.

Never be silly and simply pay tuition fees learning stocks.

Tuition fees in the stock market is no like any other.

There's a chance one can lose so badly that one will lose their life worth of trousers.




Opportunity costs?
LOL!
If you want to be good in the market...
Throw that away.
Learn how to trade/invest in the market....
Know and understand the risks involved at all times.

That's more important.....

If you know that well, you will understand why and when to buy and not buy a share.

Actually I do not know what you are trying to reply...........

LOL.. stay away from the small caps unless you know what you are doing

you dunno never mind, he know enough liao
just borrowing your word~

This post has been edited by zDarkForceSz: Mar 12 2015, 09:37 PM