Information power...

Yesterday, I was reading the New York Times when my eyes caught the title "Hewlett-Packard to Acquire 3Com". The first thing came to my mind was like, "3Com must have something is stock to get the attention of HP, the biggest personal computers and printers manufacturer in the world"; and the next thing is: "OMG, 3Com's stock price must be rising like crazy". I immediately switch to marketwatch.com to see the stock price of 3Com and realized that at the time of the Acquisition of 3Com, its stock price jumped from $5.5 to $7.5 per stock. Boy it was almost 40% increased. Power of information triumphed for someone knew about this.

Buying a franchise for a safety business? Hell no!!!

In the investment world, the first principle is, Risk and Return go hand in hand. The lower the risk, the lower return you will have to expect. For someone who just has a big cash fall on his head from the sky, he has several investing choices, mainly as securities markets, opening a new venture, or buying a franchise. Of those choices, opening a new venture generally have the most risk, but also will return abundantly to him if success. Securities markets option, grant him somewhat good return, and the risk is much less than starting a new venture, if he knows how to flat out his portfolio and reduce their risks. Two choices above, I think is the main investing method for people with spare cash. Buying a franchise, however, is so different. Some franchise requires a significant amount of cash initially, and that amount can climb up to several millions of dollars, if you want to buy a popular franchise such as McDonald or Pizza Hut, others vary with at least around $200,000. Of course, buying a already popular franchise is pretty safe, but it wouldn't win big either. The break even points usually can be achieved after several years, and after that, the in flow of cash is not that great. In short, if I have several hundred thousands dollar, I wouldn't consider buying a franchise at all.

Crazy sample number

I'm doing stock trading on the Virtual Stock Exchange Market and still struggling at around 2% increased everyday. I'm getting bored and thought:"Damn, this takes like forever to get rich with this amount of interest rate". But then I thought about it and did a sample financial calculation: if I can get 2% interest rate everyday (and it's absolutely obtainable, talking positively), and I do this crap 200 days a year, how much money will I get? The result was amazing: with 2% interest everyday, after a year my money will grow 54 times, and if I can try even harder and earn 3% interest rate everyday, that number jumps to 369 times... Holy crap!!!!

A new interest

I have heard about the Virtual Stock Exchange contest from a long time ago, but I hasn't paid attention for it until yesterday, when I was so bored and decided to do something new, since it wouldn't cost me any real money anyway.
To be honest, I was pretty surprised to see how simple it is to buy and sell stock on the OTC stock market. All you have to do is money (of course the money I'm using is virtual so it's another thing), and you can decide on whatever stock you want to buy. The second thing amazed me is how stocks price go up and down every second, and an amateur like me still has no clue about their trends.
I think, stock trading is simple, but how to win a lot of money by stock trading is not. You have to decide when to buy, when to sell which stock, and to make that decision correctly, you need relevant information. That kinda explains why some people spends their entire days reading newspaper, watching stock price and make decisions.
I'm so glad, that I found out that stock trading is not as complicated as I thought before, and I know that I will be able to do this crap too. I will keep doing this for a while and after some times I'm gonna hit the real OTC stock markets with real money.

Don't feel like it...

Guys,
What would you write on your blogs if you don't have the mood to do it while you are required to???

An in-time recovery?

One year ago, is the collapse of Lehman Brother - the biggest bankruptcy ever happened in the United States, during one of the worst recession of this country. On The Economist, Ben Benanke announced that America's reccession is probably over, technically speaking. This is a really good news to know, because after the recession, the job demands will rise, as the aggregate demand curve will shift to the right, and people will have more opportunity to find jobs. The only downside of that is that everything is gonna become more and more expensive gradually. So I think if someone plans to buy something big, they should buy it sooner, before its price rise to the rooftop. Well it's all my assumption from what I've learned from the Econ classes, and I hope it didn't fail me on this.

Got chased by 5 beasts

After observing the blog assignments sheet from professor Lane, I suddenly realized that I will have my blog evaluated by 5 people. That was so surprising huh???? :-?? Oh btw sorry guys for calling you beasts up there, just kidding rofl.