15 November 2013

Some People are Overly Worried about Brokerage Fees

The first time when I bought my first stock, I was also thinking too much about the fees, worried it might eat into my profits or cause me to lose more money, after a while, I realized that the charges can be negligible. Every of my buy or sell trades so far costed me around $20 to $30+, and lucky for me, I mostly see profit, and the earning more than makes up for the cost, I think I am doing okay so far, overall I haven't lost any money, yet.

What I'm saying is, stock pick and going in at the right time is far more important than that $20 to $30, but of course it doesn't hurt to find a cheaper broker. I know Standard Chartered Bank offers lower charges because they do not have a minimum commission, but well, I won't worry about that.

Recently read about a guy who have been losing money in stocks, he said he mainly buy because others are buying, sell because others are selling, no wonder he is losing money, following the crowd is a big mistake, if you follow the right crowd, you could end up with more money, but usually the right crowd are the big players, you won't ever get near enough to know what they are planning next, it's better to not do anything when not sure than to follow the crowd, like people in forums, or blogs, usually they tell you to buy because they are invested in that stock, sell because they are waiting to buy or they are shorting it, it's always advise to their benefit, so don't read into it too much, make your own judgement.

If you are really not sure, no idea what to buy, no time to research and form your own judgement, it's better to stay away from the stock market, put that money in some endowment plan, or top up your CPF, rather than losing it for no good cause. Be safe.

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