Money Making Online

Do you remember when the Internet bubble exploded in 2000? Yes, maybe you remember.

That were a crazy time when many people including chefs, drivers and policemen, were spending their savings and gambling their retirement funds in Stock Market. People who didn’t know anything about Stock Market thought they would be rich in a short time with the most crazy companies in the world: the dot-com companies. These companies had not any earnings, but people felt that spending your money in those would be a great idea. And the brokers and the investment firms seemed to feel the same thing.

Why? Why people were investing frantically in companies without earnings? Well, the answer is simple: euphoria. The “big mass” is always manipulated by media. And media is a good soldier for the real winners in the stock market. In that time, you could hear news, articles and opinions about the big revolution dot-com and how many people in the world were winning a lot of money with some simple websites and obtaining the money from investors even if the web-project was really crazy. And people read the Wall Street Journal, they watched TV, heard their broker or trader and then they were feeling the pressure and a little voice in your head: “Hey, will you lost this big chance to obtain easy money? Come on, give your money to your broker and feel the sound of cash going to your bank account.” Easy money? Get me a break!

Easy money is not a general concept. Instead of that, to obtain money is easy if you have the knowledge. Investing Stock Market is the same. Again, if you don’t know nothing about the stock market, maybe you want to give your money to an investment firm and they could win something for you, but believe me, “something” means a low return in most cases. The investment firms use a simple philosophy: diversification. They diversify your money in many investments so they can minimize the risk: if a market is low, maybe the other market is high. So, they have an average profit but maybe this profit is better than your bank account return.

But the real winners don’t have average profits. Sure, they lose money sometimes but in many cases they have extraordinary profits because they have two powerful tools: knowledge and access to good information. When the chefs, drivers and policemen are entering to market because of diffused euphoria by media, the real winners start to sell positions and apply their “exit strategies”. The real winners look for opportunities when stock market is weak, not when all people is buying.

Warren Buffet, one of the most honorable investors, say that the most stupid reason for buying stocks is because all people is buying the same stocks. If the life were so easy, we would be living with Alicia in the wonderful land.

The point is, if you like the stock market matter, please: first at all invest to learn about that. Learn, learn, learn. To invest your money by yourself without to have knowledge is like buying a lottery ticket. On the other hand, to invest your money in stock market by a good investment firm is like opening a bank account with a “big” profit, but probably the bank could go to bankruptcy sometime and your money could be lost.

If your choice is give your money to a good investment firm, think about this: your money will be managed by an employee in most cases, not by a real investor, so don’t wait an extraordinary profit.

Now, if you think you are ready for investing by yourself, try to answer these questions:

- Do you really know how the stock market is working?
- Do you have additional information which is not known by the “big mass”?
- Are you ready for losing the money and that will not affect the food in your home?

If the answer is no, get me a break!

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