Facts on Stocks

One way to keep our brains remain clear when stock investing is to look at the facts with a cool head. Capital market is not a story about heaven and hell. The potential profits and losses in the stock market are two sides of the coin and we have to deal with rational sikapi.

Through a series of these facts you will understand that the promise of big profits from the stock market not a figment of the imagination, as well as warnings about big losses on stock investments is not just a bluff. Please look carefully. Sweet Facts about the shares

Stock price index (CSPI) Indonesian Stock Exchange (IDX) grew 278.74% over the period July 1, 1997 until December 12, 2007. That means, just a rough idea, the average price of shares in BEI also grow as high as that as well. Tinggikah growth that big? Please compare with the stock price index in the stock market to other countries the following:

1. New York Stock Exchange (U.S.): 97.67%

2. Hangseng (Hong Kong): 84.73%

3. Kuala Lumpur Stock Exchange (Malaysia): 33.93%

Fourth. KOSPI (South Korea): 50.27%

Superior stock price (blue chips) for a certain period:



* Astra International (ASII)
o January 1, 2001 Price: USD 1640
o December 17, 2007 Price: USD 27 300
o Decrease in price: 1.563.62%
* Bakrie Sumatera Plantation (ANTM)
o 4 November 2004 Price: USD 415.22
o December 28, 2007 Price: USD 2275
° Growth rates: 447.90%
* International Nichel Indonesia (INCO)
o August 3, 2004 Price: USD $ 78.31
o December 28, 2007 Price: USD 9625
o Growth rates: 12.190.90%


Note: The share price represents the price adjustment after stocksplit, etc..
Source: finance.yahoo.com



Above facts show that if you buy stocks ASII on January 1, 2001 (USD 1641 per share), then sold it on December 17, 2007 (USD 27 300 per share), you will get a profit of 1563.62% for seven years. Simply put, it means the equivalent of profit amounting to approximately 200% over a year. Much higher than bank deposit interest, is not it?
Bitter Facts on Stocks

But, investing in stocks is not always sweet fruit. Many of the bitter facts about stock investing.

Stock price index (CSPI) Indonesian Stock Exchange (IDX) dropped -50.53%% during the period January 2, 2008 until December 18, 2008. More or less, a decline of many stocks were also hit in the BEI. This poor performance was also hit stock exchanges around the world:

1. New York Stock Exchange (U.S.): -41.7%

2. Hangseng (Hong Kong): -43.7%

3. KOSPI (South Korea): -36.6%

Superior stock price (blue chips) during the period of interest:

* Bumi Resources (BUMI)
o January 2, 2008 Price: USD 6350
o December 31, 2008 Price: USD 910
o Decrease in price: -85.67%
* Aneka Tambang (ANTM)
o January 2, 2008 Price: USD 4425
o December 31, 2008 Price: USD 1090
o Growth rates: -75.36%
* London Sumatra Plantation (LSIP)
o January 1, 2008 Price: USD $ 11 400
o December 31, 2008 Price: USD 2925
o Growth rates: -74 342%

Note: The share price represents the price adjustment after stocksplit, etc..
Source: finance.yahoo.com

Well, obviously, is not it, investing in stocks is not always promising big profits. Even the investors also participate champ slumped due to the falling stock prices around the world.

If on January 2, 2008 ANTM ago you bought shares worth USD 4 425 million (1,000 shares), on December 30, 2008 the value of shares you live USD 1.090 million. Your investment losses reached 75.36%. In fact, if you save money in the form of bank deposits, you will get the bank interest of approximately 6% a year.

written by bung awam

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