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A better understanding of how the stock market works
Mr Green
#1 Posted : Thursday, May 21, 2009 2:25:00 PM
Rank: Member


Joined: 10/3/2006
Posts: 19
Location: UK
'Once upon a time,in a village,a man appeared and announced to the villagers that he would buy monkeys for $10 each.

The villagers,seeing that there were many monkeys around,went out to the forest and started catching them.

The man bought thousands at $10 and,as supply started to diminish,the villagers stopped their effort. He further announced that he would now buy at $20 for a monkey. This renewed the efforts of the villagers and they started catching monkeys again.

Soon the supply diminished even further and people started going back to their farms. The offer increased to $25 each,and the supply of monkeys became so small that it was an effort to even find a monkey,let alone catch it!

The man now announced that he would buy monkeys at $50! However,since he had to go to the city on some business,his assistant would now buy on behalf of him.

In the absence of the man,the assistant told the villagers. 'Look at all these monkeys in the big cage that the man has collected. I will sell them to you at $35,and when the man returns from the city,you can sell them to him for $50 each.'

The villagers rounded up all their savings and bought all the monkeys.

They never saw the man nor his assistant again,only monkeys everywhere!
Now you have a better understanding of how the stock market works.'

When written in Chinese,the word crisis is composed of two
characters. One represents danger and the other represents
opportunity.
In every game and con there is always a victim and there is always an opponent. It’s good to know when you are the former so you can become the latter.
underweight
#2 Posted : Friday, May 22, 2009 4:37:00 AM
Rank: Member


Joined: 1/25/2009
Posts: 184
Location: For now El-Fashier - Darfur
Thanks brother for saving my words. Now I can comfortably explain to my little boy who keeps on asking me that question. What about global financial crisis? Pls simplify it for us! You made my morning!

A fool and his money are soon a big party
"A bad decision made now is beta that a good one made later!!"
underweight
#3 Posted : Friday, May 22, 2009 4:37:00 AM
Rank: Member


Joined: 1/25/2009
Posts: 184
Location: For now El-Fashier - Darfur
Thanks brother for saving my words. Now I can comfortably explain to my little boy who keeps on asking me that question. What about global financial crisis? Pls simplify it for us! You made my morning!

A fool and his money are soon a big party
"A bad decision made now is beta that a good one made later!!"
underweight
#4 Posted : Friday, May 22, 2009 4:38:00 AM
Rank: Member


Joined: 1/25/2009
Posts: 184
Location: For now El-Fashier - Darfur
Thanks brother for saving my words. Now I can comfortably explain to my little boy who keeps on asking me that question. What about global financial crisis? Pls simplify it for us! You made my morning!

A fool and his money are soon a big party
"A bad decision made now is beta that a good one made later!!"
hello
#5 Posted : Friday, May 29, 2009 4:53:00 PM
Rank: Member


Joined: 6/11/2008
Posts: 257
Mr. Green very good example

which soda do u take ?
I want to be a millionaire.
mwanafunzi
#6 Posted : Saturday, May 30, 2009 12:47:00 PM
Rank: Member


Joined: 12/3/2008
Posts: 113
He.. he.. thats a good one keep it up.

hold tight to your chutes we are about to dive
Ruchwarsteve
#7 Posted : Sunday, May 31, 2009 1:38:00 PM
Rank: Member


Joined: 4/8/2009
Posts: 34
Mr. Green,Is not that rather allegorical? Point taken. Thank you.

RUCHWARSTEVE -super surfing
Gordon Gekko
#8 Posted : Monday, June 01, 2009 6:40:00 AM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
Wow,so the stock market is actually a science! I've always tossed a coin to pick stock,must now review the strategy ....
stonemimi
#9 Posted : Monday, June 01, 2009 7:37:00 AM
Rank: Member


Joined: 5/16/2009
Posts: 145
@Green: Assume the man had bought 1000 monkies by the time he went to the city.

500 @ 10 ($5000); 300 @ 20 ($6000),and 200 @ 25 ($5000). By the time he migrated to city,he had spent $16000). His agent sold the whole stock @35 making $35000,hence making a margin of $19000. the vilagers anticipated to sell @50 and make a margin of $15000,but the man never came back. Are you saying,the stcck market is pure con-game?


Happiness is not a right - except for children. You won't be happy if you think too much. The search of happiness is one cause os sorrow.
mtaalam
#10 Posted : Tuesday, June 02, 2009 8:06:00 AM
Rank: Member


Joined: 11/2/2006
Posts: 519
Didn't realise there were so many new people in here!!!

The best time to plant a tree is twenty years ago. The second best time is now.
Mr .Ben
#11 Posted : Tuesday, June 02, 2009 2:11:00 PM
Rank: Member


Joined: 1/20/2009
Posts: 46
Very good analytical skills....


'Until the lions have their historians,tales of hunting will always depict the hunter as a brave man.'



"Until the lions have their historians, tales of hunting will always depict the hunter as a brave man."
hello
#12 Posted : Tuesday, June 02, 2009 5:41:00 PM
Rank: Member


Joined: 6/11/2008
Posts: 257
@ Mr. Monkey ooooooppppssssss sorry Mr. Green

Which monkey are you talking about.......

safaridog monkey

ak monkey

uchumi monkey

or any other monkey.
I want to be a millionaire.
xyzee
#13 Posted : Wednesday, June 03, 2009 8:47:00 AM
Rank: Veteran


Joined: 1/9/2009
Posts: 1,262
@underweight


> It is August.
> In a small town on the South Coast of France,holiday
> season is in full
> swing,but it is raining so there is not too much
> business happening.
> Everyone is heavily in debt.
>
>
>
> Luckily,a rich Russian tourist arrives in the foyer of
> the small local
> hotel. He asks for a room and puts a Euro100 note on the
> reception counter,
> takes a key and goes to inspect
> the room located up the stairs on the third
> floor.
>
> The hotel owner takes the banknote in hurry and rushes to
> his meat supplier
> to whom he owes E100.
>
> The butcher takes the money and races to his supplier to
> pay his debt.
>
> The wholesaler rushes to the farmer to pay E100 for pigs
> he purchased some
> time ago.
>
> The farmer triumphantly gives the E100 note to a local
> prostitute who gave
> him her services on credit.
>
> The prostitute goes quickly to the hotel,as she owed the
> hotel for her
> hourly room use to entertain clients.
>
> At that moment,the rich Russian is coming down to
> reception and informs the
> hotel owner that the proposed room is unsatisfactory and
> takes his E100 back
> and departs.
>
>
>
> There was no profit or income. But everyone no longer has
> any debt and the
> small town people look optimistically towards their
> future.
>
>
>
> COULD THIS BE THE SOLUTION TO THE Global Financial
> Crisis? Or,is there a
>
> catch here?
jupiter
#14 Posted : Tuesday, June 16, 2009 3:17:00 AM
Rank: Member


Joined: 4/8/2009
Posts: 71
Stocks parables?

All that glitters is not gold
Capri
#15 Posted : Tuesday, June 16, 2009 10:34:00 AM
Rank: Member


Joined: 5/13/2008
Posts: 51
@XY

Believe the pro still owes the hotel ama ? Looks like she has been *****d again !!
Iceberg
#16 Posted : Tuesday, June 16, 2009 12:28:00 PM
Rank: Member


Joined: 1/16/2009
Posts: 3
@ xyzee

Thats a good one. But in the end its the russian who loses,for the hotel cant pay him back his €100. Guess what u are saying is that all stimulus packages hurt the ones (governments) dishing them out.

Do onto Thee as you would like Thee to do onto Ye. IF I WROTE THE BIBLE,I WOULD SAY. Do onto to Thee before Thee does onto Ye.
Brewer
#17 Posted : Tuesday, June 16, 2009 1:35:00 PM
Rank: Member


Joined: 6/24/2008
Posts: 238
Mtaalam,you are right. We can have the simonkabz 'Cool dem nerves' posts all over again and many will be non the wiser. Welcome all,though,and thank you for bringing the old man's feeling to me so early.
obiero
#18 Posted : Thursday, November 21, 2013 11:38:57 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,555
Location: nairobi
nice read..

HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
VituVingiSana
#19 Posted : Friday, November 22, 2013 2:04:21 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,124
Location: Nairobi
2 June 2009

hello wrote:
@ Mr. Monkey ooooooppppssssss sorry Mr. Green

Which monkey are you talking about.......

safaridog monkey

ak monkey

uchumi monkey

or any other monkey.


AK got bought out at 14.
Safcom is at 10+
Uchumi is back on track & now at 20.
Perhaps they weren't the monkeys we thought they were!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
murchr
#20 Posted : Friday, November 22, 2013 3:28:20 AM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
obiero wrote:
nice read..


Ive been looking for this post for a while now, but of interest is why Obiero has brought up.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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