Saturday, October 27, 2007

Porter's 5 Forces

I think, Porter's 5 Forces is a great model for industry analysis. However, I really don't know if people in the field of finance use this model or not. Also, I don't know how useful it is in reality. It just seems good to me in theory.
Because of my knowledge level and limited experience, I don't see Porter's 5 Forces is helpful to me or do me a great deed. I feel that it is so complecated. I don't really know how to use it. Even I can follow all the guidelines, I believe I still can figure out which industry will be the best or good. Also, if we have to do all of these things to all the industries by using the Poter's 5 Forces model, it is going to be horrible. I don't think it is very applicable to me. There are a lot of information that required by the model is not accessible for me, an average person or lower then average.
I think, if I am an investor, I don't think I will follow the Porter's 5 Forces. I just want to know which one is the most profitable industry in the past, now and the near future. Also, i would like to know some key reasons behind them. I think it will help me more in this way. Also, it is much easier for me to find the answer. Furthermore, time is important. By the time we finish our analysis by the Porter's model, I think the best opportunities are gone already.
Porter's 5 Forces sounds good to me, but it is not applicable to me.

I think the Oil and Gas industry has very high barriers to entry. First of all, without really know about the industry but a very few information, we can think in this way. Oil and gas industry is one of the most profitable industries in the world now. Also, it is the most profitable time in history. Rationally, everyone one to take a piece of it, can it? Of course not, if everyone can take a piece of it, we all become rich, not just a very few people in the u.s. are rich, but the majority is poor.
Second, Oil and gas industry requires huge of capital and other investment.
Third, Oil and gas are getting less and less. It's so competitive itself. It's not easy to find more resources in this world. They are limited resources.
Fourth, govement has great influence in this industry. There are all kind of regualtion to blog people go into this industry. Also, OPEC is controlling this industry. It is just so hard to get into this industry in this day.
Although Oil and gas industry is one of the most profitable industries in the world, it is one of the most difficult industry for entrying.

Monday, October 8, 2007

Mission: Win - Win

I want to have my own business, which will help many other Chinese to achieve "American dream" by staying in China. Also, it will bring great opportunities to the finance inductry in the U.S.
Our company's task is to hire and train potential Chinese to trade U.S. stocks for us. We wish to be one of the pioneers in this special industry in China. Also,we wish to explore the Chinese market and capture the great opportunities there. At the same time, we wish to be one of the leading online trading firms in the U.S.
In order to achieve our goals, we value our traders as one of our most important assets. We want to create a "Win - Win" situation, which will help our traders to earn a satisfied life and make our company being profitable and meaningful. We will do whatever it can to help our traders to success. We treat our traders as our family members. As our firm being profitable, we are willing to contribute to our society. This is one of the most important value we hold.
Our goal is to be a leading online trading firm in the U.S. by expanding our business global, especailly in China.
Although this plan sounds fine to me, it's not going to work or it will be hard to be true if I am not a successful day trader. Therefore, I will continue my trading education from my trainer in my company. Also, I will follow the company's program to help myself. I will also develop my own trading methods and theories as I learn and practically trade stocks. At the same time, I must collect the informations in China and make practicle plans. When I can accomplish these two major steps, I can then look for partners to start my own business.
So, this semester is very important to me since I must finish my classes in order to graduate. If I delay my graduation, I may not be able to graduate anymore, or I will miss the great opportunity I perceive in the market now. When I study hard for my school, I must spend a lot of time in the market and information collection.
The opportunities are there now. It's a great challenge to me. I am exciting about this. I am also passionated for what I can vision and working for ...
I believe I can be successful.