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Tea with AK71: A piece of cake?

Friday, April 30, 2010

A couple of weeks ago, someone told me that he was thinking of putting some of his savings in the stock market.  He asked me how much should he put in. I asked him how much was he willing to lose. That stumped him and he looked puzzled. He went quiet and then, with that same puzzled look, asked me if I was not going to help him make money. Woah! Stop right there.  I decided to give him a history lesson there and then.  Question: Excuse me, are you an investor?

No one should ever enter the stock market thinking that he would only make money.  That must be the grandest delusion ever.  Don't ever get into the stock market if one thinks of only making a lot of money and not losing some (or a lot, for that matter). 

Entering the stock market is just like entering a relationship.  Don't ever get into one if one thinks that every relationship will have a nice "happily ever after" fairy tale ending.  There will be rough patches.  There will be sleepless nights.  There will be headaches.  However, they are part and parcel of the learning process and they, believe it or not, enrich our life experience, well, in a perverse way, whether or not the relationship works out in the end.

We can't have our cake and eat it and well should we know this. Right, a spot of tea and, perhaps, some cake, anyone?


la papillion said...

Hey AK,

Well said :) It confirms my observation that a lot of newbies are entering the market now, most of them without any idea of how much they can lose.

Once we see massive newbies coming in so as "not to miss the bull run", it's time for cinderella to go :)

AK71 said...

Hi LP,

Haha.. Cinderella? Yes, perhaps, or our coach would turn into a pumpkin at midnight. ;)

I think AD&D has a spell that creates illusions on a grand scale. I cannot remember the name now. :)

la papillion said...

Hi AK,

Choose your poison - :)

This is D&D though, haha

AK71 said...

Hi LP,

Thanks for this. :-)

May Magni shower blessings on you.
Of course, this is illusionary and not to be taken seriously. haha... ;-p

Anonymous said...

hello AK !

u r one humourous blogger , and i meant it ! i never look at entering the stock market as equivalent to entering a relationship. after reading what u wrote, i look at it from that angle & damnit, u r so right! are u writing from previous experience ? haha heeeee !!!

(Donnie Yen is my hero !)

Anonymous said...

Hi AK,

For a minute there I thought one of your passive income is selling that delicious looking cake.Haha...


AK71 said...

Hi KM,

I am glad you found the post humourous. :) The stock market is really a microcosm of life and, yes, I have my fair share of difficult relationships. ;)

I am happy I started the "Tea with AK71" series because it shows a different side of me. Otherwise, this blog might turn out to be another financial newsletter wannabe. ;)

Donnie Yen rules! :-)

AK71 said...

Hi Naomi,

The cake does look delicious, does it not? :) I found the pic online. It looks like a yummy prune cake.

My sis bakes in her free time and she makes absolutely delicious cakes. Now, I just find cakes sold at coffee joints expensive and, er, not so nice.

I think baking is hard work. Definitely not passive. hahaha.. ;-)

Pt-Trader said...

Hi AK,

I am keen to exchange links with you. I can't find your email so i am posting here instead. I look forward to your reply!

P.S. The weather is getting bad, i think couples who want to date must bring an umbrella!

AK71 said...

Hi Pt-Trader,

Haha, an umbrella? I agree and I think the umbrella must take the form of a sound financial plan. I have seen so many marriages ending up on the rocks because of money issues.

I would be happy to do a link exchange with you. I have added your blog to my blogroll. :)

However, my widget says that it cannot detect a feed for your blog. So, the blog post and update time could not be shown. Could you fix this?

My email address is in my Google profile. Just click on my nick above and you will see it. :)

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