As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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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.

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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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