Last friday when I read the news on e-fint.com, I suddenly saw a 7% surge in guotaijunan (218, the broker) stock price. The profit for guotaijunan has increse 500%.
The stock market was really bullish from last year, trading volumn has increased significantly. When I start trading I have already know this, why I did not buy in any shares of broker and the stock exchange (HK stock exchange price has increased a lot as well).
One lesson of the investment when there were many gold digger rush to california, not all of them made the millionair, but Levis who made jeans for those gold digger made a billioniar. When an industry is doing well, it's risky to pick the winner among all companines in the industry, it's much safter to pick the firm who serves most companies in that industry.
As Peter Lynch said the oppertunities are in your life, just need to watch it out.
As today 218 is trading at $2.5, I probably take some position in as I do think the stock market has at least 1 or 2 year to run which can give some support to the broker's stock price.
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