Wall Street: Money Never Sleeps – Lessons Learnt

Poster taken from: (http://www.wallstreetmoneyneversleeps.com/ )

Yesterday, I went to Mid Valley to watch this movie. This movie is a movie that I can really relate to because stock market trading is one of the fields that I am really passionate about. The story is about Jake, a Wall Street executive who faces a lot of challenges in his personal and working life (I won’t bother you with the details since I do not want to spoil it for those who want to watch this later) due to a few factors. From the storyline, I want to highlight a few lessons that investors and commoners can learn from in order to become better knowledgeable people:

1. Realize The Power Of Rumors Over A Stock: To those who are in the investing world, we always hear the phrase “Buy on rumors, sell on news”. Actually this fact is somewhat true. There are a lot of ways for companies to raise their stock prices, and one of them is to spread good rumors about their company (for example won a new project tender, white knight buying their stock). These rumors will then spread like a virus throughout the whole country and cause the company stock to either increase or drop depending on the nature of the rumor. Therefore it is possible for a stock to go from $1 to $15 in a few days just because of a rumor. However, the company which stock had climbed up will be queried by the Securities Commission and this company has to provide an answer to why its stock is surging up when there is no news. The lessons that we can take here is, be alert of the rumors that are spreading, because it might be about the stock that you are holding.

2. Money Never Sleeps: This sentence is meant especially to those out there who haven’t started any type of investment in their life. Money which is sitting in the bank or safe deposit is actually useless to us unless we need to use it in the short run. Therefore, this money is best left to work in investments where the money will generate more money. The least you can do is buy some stocks of a blue chip company that you really like and trust in. The money that we left in the market will then start working for us, although while we are sleeping, because this money will be invested in the business of the particular company which stock you bought. Therefore, I urge those who are still yet to start investing to start investing soon.

3. Choosing The Right Market For Your Investments: The world is evolving everyday. In the early 2000′s, it was the internet companies who made a fortune out of their rising stock prices (people investing more in one particular market means there will be more capital to do business in that market, hence meaning better returns on investment). At other times, other different types of markets are making a lot of profit out of the stock market. Therefore, it is really important for investors to always monitor the market movement and identify which market will be the next emerging one. Recently, a lot of nations have been focused on spending money in green technology so that our future grandchildren can live a healthy life. Who knows maybe this market might be the next hot one in a few years?

4. Investing Is Like A Roller Coaster Ride: There will be ups and downs in investing. One moment you might be up $1 million but the next you might be down $2 million. That is why the most successful investors are those who are really strong at heart, besides having a strong mind. Investing is a tough job, it requires a lot of patience, bravery and acceptance. To those who want to venture into high risk investment, make sure you are prepared to lose big and accept that kind of loss. If not, you will end up losing big and not having the heart to rebound from it. Different people have different risk appetites, therefore it is important when you start investing to identify how much risk are you willing to take and how much you are willing to lose if that investment fails. Need further advice you can contact me and we can talk.

That is all for now. These are just some of the many lessons that I can conclude from the movie. To those investors out there, I really recommend that you watch this movie because it was a blast for me!! I really loved it, and hope to see these types of movie in cinemas again in future :)




5 Responses to 'Wall Street: Money Never Sleeps – Lessons Learnt'

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  1.    Amir F. said,

    on September 26th, 2010 at 9:14 pm

    Thanks for sharing your insights.
    Can’t wait to watch this movie…

  2.    bet365 said,

    on September 27th, 2010 at 4:46 pm

    hi!This was a really marvelous blog!
    I come from uk, I was luck to seek your blog in baidu
    Also I get a lot in your topic really thank your very much i will come every day

  3.    muizal86 said,

    on September 28th, 2010 at 11:13 pm

    Tq for reading Amir..you have to watch it, it is really a must for those inspiring to become ultimate investors out there!

  4.    penny prophet said,

    on November 28th, 2010 at 5:27 am

    Among several stock traders, 1 mistake commonly made is that investors might usually exhaust themselves on merely thinking about purchasing stocks with out foreseeing that there could come a time that they may well must let go of such stocks for lucrative reasons. Occasionally, you may well understand that selling can truly be extra practical than holding on to something that may perhaps price you far more within the lengthy run. Let us learn why and whenever you must sell stocks.

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