Today I would like to write about my experience on the stock exchange and the conclusions  I have made. The first stage was buying  a book like “Exchange for idiots.”It is clearly explaining about different types of securities, etc. I am not going to relate to it, if you want, you can easily find everything about this subject  in Google.


I want to touch another theme.

In spite of your ,possibly, hearing about successful deals,you should not forget you have only 2 sources to obtain information.

1) Analysis of graphs

Тель Авив

Тель Авив Tel Aviv

2) The media (News, TV e.t.c)

The result is that your decision is being made only on the basis of these two factors. My task was to maximally reduce the risk . Theoretically, the first and   correct  thing to do is examining only big and stable companies. In Israel, 25 of the largest firms are called “Tel Aviv 25″. In other words, the average value of shares of all companies is taken at once,not separately.

Ok, The result is that the most reliable invest in shares is of a fund which is 100% tied to the index,correct?

The next step is to look at the graph. (The case took place  in early 2008 ). I open the graph and see that for more than 4 years, shares have been offering  from 15% to 21% of income (from 2004 till the beginning of 2008 th).

Now I look through  the media - A local newspaper  “TheMarket” and a bunch of information on the internet. Everywhere is written that growth will continue,Simply because nothing else can happen to such large firms . Sounds logically, especially since this is the weighed average of 25-firm!

Thus, I took advantage of all available (to me) analysis resources (analysis graph + The media). Now, you can open the graph and see what happened in 2008 ):

I lost  around 30%, but gained experience which one sentence can express : “If you rely on the media and analysis graph - be prepared to lose your money.”

Just some information for thought (: