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Sign up with Google Sign up with FacebookQ: How is it that so many Chinese dabble in the Chinese stock market?
The Chinese Stock Market is to me a thing of mystery. It's not accessible to foreign companies, it's (from what I hear) even more complex than any of us expect, and yet...
The average Chinese often dabbles in it, and often makes a killing. I know quite a few people, teachers, programmers, etc. (women as much as men) who play around and make quite a bit of money.
How does this even work? Do these people have connections? tips? It boggles the mind how people with no financial training natural intuition (because really, it's quite obvious the people I frequent don't actually really understand the general dynamics of how it works) make money like this.
Has anyone else noticed this?
12 years 14 weeks ago in Money & Banking - China
To me is pure greed. They see that shares of companies listed do appreciate in value for whatever reason, and they invest money on them to relize quick profits. Also maybe because banks do pay a lousy interest rate on savings. From the persons I know that do play the Chines stock market I learned that they do not trade on a daily basis, they buy and hold shares until they raise in value to what they consider a good profit. I have no idea if this is general or particular of those I know.
China is relatively new to the stock market phenomena. Very few alive in this country today would even remember 1929 or all of the other subsequent crashes since that point. Very few of my friends who own stock actually understand the system and assume that all stocks will rise. Selling short and all of the other complex operations known in the West are still only understood by a few.
And finally, in a country that loves to gamble, perhaps it's just another form of gambling -- a game of mah jong only involving corporations. It's a deadly game though and when they get burnt, they will learn the lesson.
Live by the trade, die by the trade,
being broke is a temporary situation, being poor is a frame of mind.
ambivalentmace:
https://www.scmp.com/business/companies/article/2122659/stronger-efforts-called-educating-chinas-100-million-retail I can't use the restroom correctly or drive a car but I am an expert stock picker, my fortune teller told me so and my phone number has four "8's" . I'm gonna be rich.
ambivalentmace:
Know when to hold them, know when to fold them, know when to walk away, know when to run,
time for counting when nothing is left on the table. The bull is castrated, where is that bear?
Chinese people jump at anything that looks like a get-rich-quick-scheme