bullbearings.co.uk Part 2

Well, its been three weeks since I started this investment game that i talked about a few blog posts back and nope, i am not yet bankrupt. In fact, I have made £1000. I think its quite good considering that its only been 3 weeks. Extending it to 52 weeks for a year, that would be roughly, £17,000. Just a little short of paying my tuition fees. Haha, money that i could have made had i actually traded in the london stock exchange instead of an on-line simulator game. Anyway, the thousand pounds was made with a starting investment of £100,000 so making 1000 quid ain't a lot. Still, if i actually manage to keep it up; it will yield 17,000 quid for the year which translates to a 17% increment/interest rate. Much better than any bank would offer.

If you think about it, if an economy grows by 5%, then your investment should also yield about 5% interest too. 5% may seem low, but you must remember that economy growth figures usually already have inflation rates factored in. So for example; if the economy grew by about 7% but had an inflation rate of 6.6%. In raw figures, your stock investments will yield about 13.6% increase but only 7% contributes to real growth. Of course, you have to spread out your investments wide enough to reduce your risk. You would definitely be able to get higher returns from equity investment than from fixed deposits or other scheming bank schemes.

Anyway, i dun believe in playing the stock market. Doing so is even more stupid considering the fact that you have to pay commission every time you trade.

Ok, nuff said about money. On to the weather... ... Spring is here!!