When I first read the article titled “Why are M’sians investing hard-earned money in Ponzi schemes?” from The Star Online, it occurred to me, what the hell is Ponzi schemes?
“A Ponzi scheme uses the investment funds of new members to pay the high returns of the previous members. As long as the fresh investments outpace the promised monthly profits, a Ponzi scheme can usually sustain itself.” So, let’s see so far what I have done (in investmentlah, of course).
Firstly I have an ASB (Amanah Saham Bumiputera) account for ages, well since I was 7 years old. Just a few years ago, I learned about the value of money, so I started to learn about investment. My first investment, minus ASB since I never knew what it meant or what it was from the very beginning when I start to save money on it, is called Bitcoin where I made 137.02% ROI, read here. By the way, I used Coinbox.biz, Then I start to go for gold and the stock market.
Firstly gold, when I made 5% return. At that time, which is 2 years ago, I bought gold for MY500 and I sold it for MYR525. 5% return in 2 weeks is not bad. I used a service called BitGold, now known as GoldMoney. Well, I still keeping my position but it’s too low in terms of profit so I thought gold is not for me.
Later when I learned about the stock market, I start with MYR500, what’s with me and MYR500?. Well, I just think that even if I lost MYR500, it will not affect me much. My first year in Bursa I lost MYR200. In terms of return, I made around 9.2% ( the first trade I made MYR12 profit, second MYR10, third MYR15, fourth MYR9 and finally I’m still holding Berjaya Corp (BJCORP) and Kim Teck Cheong Consolidated (KTC)) of my initial fund, as you can see I still make money but the return is negative. Here’s the calculation (in MYR, sell – buy, ROI):
- 112 – 100 = 12, 12%
- 100 – 90 = 10, 11%
- 100 – 85 = 15, 17%
- 99 – 90 = 9, 10%
- For BJCORP I buy 100 unit for MYR38, ROI (dividend) = MYR1 + 3 unit of share
- For KTC I buy 200 unit for MYR 64, ROI = NONE
From these calculations, I’m still generating profit at the same time I’m losing money. I realized that I’m losing money after I received a call from HLeBroking, they said I need to clear my position for AirAsia (AIRASIA) before the end of the day so that I will not be charged for overflow money? Still, I’m making a profit about 5% or MYR15.
End Up Losing
One thing that I realize that I have around MYR300 available balance in my account. Where did I lose my money? Then I started to dig around, and googling around. Previously, when I trade BitCoin there was zero charge same as gold. So let’s count the money that I lost on all the stock trades that I made. The math is simple:
- Buy Order cost MYR9.5
- Sell Order cost MYR9.5
- 9.5 x 7 = 66.5
- 9.5 x 5 = 47.5
- 114 + 38 + 64 = 216
- 500 + 12 + 10 + 15 + 15 + 9 – 216 – 38 – 64 = 243
See? At the end of the day, I’m left with MYR243 cash balance. This when started to learn how to trade in the stock market. From MYR243, I made MYR296 (MYR315 minus MYR19) or 10%. Later I made MYR350 (MYR369 minus MYR19) or 18%. Both of these trade I made in 2 months time.
Now, let’s talk about Guarantee. For me, when it comes to investment, a guaranteed return is bullsh*t. There will be a return but you cannot use the word guarantee. When someone or a company say there will be a guaranteed return, they actually showing you the middle finger. Again a return is possible but eats and digest this sh*t:
There is no such f*cking guarantee return
Especially when they say something like “Guarantee 20% return every month”. Believe that, and you just fall into their sh*tty hole. I’ve been in all sort of investment including properties, forex, and futures, the only one that I left is called options, It’s never a “guaranteed”. I mean yeah you can generate profit but it’s not a guarantee.
Recently there was a news about JJ Poor To Rich (JJPTR) losing almost a half of a billion dollar or ringgit, I’m not really sure. For me, even the “20%” sound bullsh*t. Before you do anything stupid with your money, why don’t you take a quick look at this list of investment companies that are not approved but the Bank Negara Malaysia?
Believe me, it will never hurt to take a look. And a little word of advice, if too lazy to go through all of the lists, just use Ctrl + F or Cmd + F, to find the company. And one more thing, if it’s too good to be true it’s always better to stay away.
One final word:
If you really like to give invest so much, why don’t you invest it yourself?
ps: This is my honest opinion, there are tons of way to loose money, why give it away to some stranger? You can loose it yourself, like me on the stock market, still, I’m feeling good about it, coz I know where the hell my money was gone.