I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down

Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Monday 18 January 2010

Where Does The Money In The Stock Market Come From?

Everybody comes to the stock market with one objective - to make money?

Since everybody want to make money; where does the money from the stock market come from?

There are some money coming from companies paying out periodically as stock dividends, capital reduction or shares buy-back; but it is not much money compare to the enormous size of the money change hand in each trading day.

Most of the money made in the stock market come from capital gains through Greater Fools distributing their money to the Better Fools.

It is foolish to expect to make money in the stock market where in fact there is so little money to make from stock dividends, capital reduction or shares buy-back. So all stock market participants are indeed fools. It is either you are Greater Fools or Better Fools.

Better Fools make most of their money from the Greater Fools and perhaps some money from the stock dividends and capital reduction as well.

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