Betting on Lottery-like Stocks in ChinaFor those who made the thousands of percentage profits on these 3 stocks , congratulations !!!!
Unless you are based in China and familiar with these local stocks, the chances of you spotting them and then make profits out of it is really slim. So, if you are like me, just read it and move on.
As an investor, it is your responsibility to do your own research about the companies you are going to put your money in. Afterall, you want to see your returns growing consistently rather than a one off exponential returns , which may not be repeated again (due to poor fundamentals)
Trading or investing in the stock market is nothing more than a game of emotions control. The easier to win, the bigger you want to increase the stake so that you win more the next time. Akin to gambling, you got addicted and blindly follow the crowd, taking the easy way out.
Of course, this is not to say that you cannot have speculative trades. For me, I put only 5% of my total capital in these trades and ALWAYS with a STOP LOSS. That way, I get to join in the fun but without burning too much.
Unless you are skilled in the game of manipulation in the market where the big boys use to lure the retail traders to push up the price before dumping them, it is wise to avoid these trades or at best, keep it minimum.
The best education is to learn how to protect your capital. Already with high inflation globally, if you are not making profits to beat the inflation rate, the least you could do is not to abuse it and let it slide further.
