Want to know. So today I’m gonna break down all the red and green flags about investing with Kayden and the founder of Value Invested Academy. Our mission in our company is we care to make people better investors. Okay, Kaden, you mention value invest. Yeah, exactly. Is it something for me to get rich quickly? Not really. It’s just a methodology that helps people to buy a good company at a cheap price. So unfortunately, there isn’t any gap. Which quick method that I know? Oh, oh yeah, speeding the truth already. Okay. Okay. So I’m gonna find out more through a game of darts. Sure. Okay, so if I win right at the end, you have to spill a trade secret. Yeah, sure. Okay, if you win, right, then you can take the time to share everything that you wanna about yourself or your company. Okay, got it. Okay, let’s go.
Okay, guys, I want, okay, so Kayden, it’s time for you to share with us a trade secret of the investing world. So the entire stock market ecosystem consists of three parties. One is people like me, Rek investors. And in order for us to buy stocks, we have to go through a middleman, and they’re called brokers. Then the last one, of course, is a stock exchange. So we must understand how brokers make money. One of the ways is the more transaction that we make, the more money the brokers make. Yeah, of course. The objective is to encourage us to transact.
So how does a stock exchange and make money? Yeah, yeah, many ways. One of them is to do this function called the clearing function. So they make money from clearing fee. If somebody buy a stock, they have to make sure that the stocks is inside the person’s account. So in other words, the more people become traders, the more money the brokers make, the more money the stock exchange thing, right? Yeah, entire ecosystem. The two parties, they were one more traders. That’s why a lot of trading cost. That’s why a lot of impression that people can get rich quicker by buying and selling in split second or five minutes or 10 minutes.
Yeah, there’s one quote I want to share, which is actually warn buffets a teacher called Professor Benvin Graham. He once said that the speculators make money for the brokers, the investors make money for ourself. So I think it’s up to us to decide which path do you want to take. If people, right, who have no savings to begin with, can they invest? So there are few components that important. I think the first component is again, knowledge. The second thing, right, is they must have some money. And then third one, they have to manage their expectation is all things requires time. So Warren Buffer has a very funny and sarcastic quote. Yeah, he said, you cannot create a baby in one month by making nine woman pregnant. That makes sense. Yeah, so a bit of a self management expectation.
Yeah, my dream shatter already. I always thought like investment, right, is the quickest way to get money. I think it’s the quickest way to lose money if you put your money in something that you do not understand. Hundred percent people buy stocks. I think 80% will get it wrong and then they lose money. So it’s common that most bills and the most common reason is cuz they don’t study. Yeah, they don’t study. So now the question is why? Because there’s something that’s quite hard to overcome or teach is greed. Yeah, whenever there is a something that’s get rich quick, people will jump into it. I can give you an energy, right? So for example, if let’s say if you wanna buy a laptop, we probably go to the shop, test out, look and feel, check the price, check the specs, and so on. So you spend time. Yeah, so maybe the laptop cost you 1,005. Yeah, but when it comes to buying stock, let’s say $10,000. Yeah, no need to check the friend. Give us doctor a 5 second. Go back home. Can press ready? Yeah, so can you see there’s this a huge disparity between behavior. So at the end of day, reflects answer. Yeah, green flag is also us. Yeah, whether you want to be a red flag or green flag is up to you. Tell us in the comments what red flags and green flags of other profession you want to know.