The majority ‘invest’ as in putting in their money carrying the hope that the price will rise, that is speculate or better known as gamble.

They might know the price but definitely not the value.

I am also learning and understanding investments. Have a great day !

“It seems to me that most people see investing as another form of horse race betting – just buy the stock that you hear that your friend..”

That line of yours make sense. Of course they know that the rule of thumb for stock trading is to buy low and sell high, but some enter without counting the risk first. They are rather blur on the liquidity of the stock exchange, which can make day-to-day trading more difficult – e.g. KLSE (though it may not be difficult if you can stare the pc throughout the trading hours to monitor the stock counters).

There again, nothing is easy, be it trading, investing or property investment (or unit trusts). Robert Kiyosaki and Sun Tzu has advised us to have a plan before going to war, and trading is like war, we must have a plan then only we will have direction. Simply put it, one should have a good grasp on the investment portfolio that one is doing before placing your money there.

Personally, given the capital, I prefer to invest rather than trade. I do not have the time to stare at the monitor throughout the day and it saves me from having to worry about the short term volatility of my shares as I have planned to hold them for a long term. Or maybe I will sell them when it is overvalued.

And the budding entrepreneurs will tell you that the best investment is to invest to start your own business!!

PS: I haven’t been reading much books about investing except for Robert Kiyosaki’s series and a bit of Sun Tzu’s, though a friend recommends The Black Swan (Nassim Nicholas Taleb), and (highy recommends) The New Paradigm for Financial Markets (George Soros). I haven’t read both books yet as I haven’t gotten my hands them yet, so I am not in a position to comment. Anyway, I do read Adam Khoo’s blog from time to time!!

Have a nice day and God bless!!