Presentation --- The Stock Market

The past 30 years, China has a great change, especially in the economic filed. People become more and more rich, and have more and more spare money. So, many people began to think about doing some investment. At the beginning, most people just deposit money in the bank. Now, more and more people invest in the stock market.

Let’s divide the stock chart into two parts. The first is upward trend, we usually called it bull market. The second is downward trend, we call is bear market. After a complete circle, we found only 10% participant obtain benefit, more than 70% people lose their money.

Why is that? Because the stock market is only a place of redistribution. It doesn’t produce benefit. There are many ways to consume the investor’s money, like, running the market need a lot of money, paying the tax, and the companies also get a lot of money from the market. As a result, only few people can earn money from the stock market.

Now we’ll talk about how to make money in the stock market.

A stock market has three movements.

The first is "main movement", we also called it Main stage positive wave. This is the source of profits. When the trend is upward, we buy the stock at the bottom, and sell it at the top. When the trend is getting down we open short (short selling) at this area, and close out(close position) at this area. Does it seem very easy? According to this rule, everyone will win. However, we have a question, why more then 90% people fail in the market. Why? It looks so easy!

Then, we need to notice the second movement of the stock market, “medium swing”. I also call it secondary reverse wave. It’s the reason of more the 90% people fail in the market. Most of them don’t know when the reverse wave begin, and how long it will last. Fear of the unknown makes people cannot make a correct or good decision. That’s the real reason of fail.

So, there is another question coming out. More then 90% people fail in the stock market finally, why didn’t they get away from the stock market? It looks so stupid they are! It’s just because of the third movement “short swing”. We also call it day clutter. People always can get some small profit from it. Because of that, some people think there is some chances everyday. This profit cheats thousands of investors, blinds their eyes. This profit let the people think they could earn money from the stock market. Unfortunately, this is only the bait of the market. The purpose is letting people stay in the market. Don’t leave. Most people don’t realize it. They think I can make money from the market, I have the ability. Actually, the short swing likes hard drug. It’s addictive, such as crack cocaine, the mayor Rob Ford’s love.

From the above, although earning money is easy from the stock market, because of the fear and greed, most investors throw their money into the water.

So there is an old saying: If you love him, send him to the stock market, because it's a paradise; If you hate him, send him to the stock market, because it's a hell ...