As there are literally thousands of books on the market it might be helpful to know a little bit more about what your goals, motivations and reasons for getting into the market. Ie are you looking to speculate, invest for retirement, make a living, generate income etc etc. Some recommendations can then be made for your specific situation.
As there are literally thousands of books on the market it might be helpful to know a little bit more about what your goals, motivations and reasons for getting into the market. Ie are you looking to speculate, invest for retirement, make a living, generate income etc etc. Some recommendations can then be made for your specific situation.
That would then bring up the next series of questions. How much time do you have to invest in the venture, how much capital are you able to deploy in the venture etc. Not trying to get personal but for example if you have $1 million and are trying to make an extra $100,000 a year it is vastly different from trying to make $100,000 a year on $100,000 of capital. The time is important because if you are at it full time you will have many more opportunities to profit from short term volatility in the market where as if you only have an hour a week you will have to look at it differently. There is a huge difference between trading and investing.
NDFAN, what bkeiller said in his post is great advice! What are your goals? What are you trying to achieve by investing in stocks? That helps determine how you should go about it.
Coming from somone who deals with the market daily, this may be a horrible time to get in the market, yes, things appear cheap now, but until Europe figures out what it is going to do, I would stay out. We could be in for a world of hurt in the coming weeks.
The experts say the market is full of hills and valleys but, right now we are approaching a cliff. Consider put options across the board, and stock up on water and canned goods.
The experts say the market is full of hills and valleys but, right now we are approaching a cliff. Consider put options across the board, and stock up on water and canned goods.
I was @ Lehman during the collapse in 2008... this is much bigger and much scarier... if Europe Banks default, the global economy is done. It will be historic.
I was @ Lehman during the collapse in 2008... this is much bigger and much scarier... if Europe Banks default, the global economy is done. It will be historic.
I think your time would be better spent trying to earn extra money betting on sports. There's a lot of low hanging fruit out there that can add up to a lot of money. Trying to beat the market is a full time job, sports doesn't have to be.
I think your time would be better spent trying to earn extra money betting on sports. There's a lot of low hanging fruit out there that can add up to a lot of money. Trying to beat the market is a full time job, sports doesn't have to be.
Maybe it is just me and the circle of people I know but I could not disagree more with this statement. I and most I know make a good living trading the market but virtually no one makes a lot gambling. Low limits, problems getting paid, finding outs etc. Seems like even the best are only up a few units each year. I hear stories that this is a recent trend and in years past you could make a good living but I sure dont see it now.
Maybe it is just me and the circle of people I know but I could not disagree more with this statement. I and most I know make a good living trading the market but virtually no one makes a lot gambling. Low limits, problems getting paid, finding outs etc. Seems like even the best are only up a few units each year. I hear stories that this is a recent trend and in years past you could make a good living but I sure dont see it now.
I don't think it's even close, I may be wrong(I often am) but think about the amount of money involved in the stock market and the amount of people who focus on that market. Now think about the sports market and the amount of money/people that focus on that market. Seems to me there would be a lot less efficiency in sports markets.
This is not a beginners guide to stock market but check out this article comparing stock market and sports betting Interesting point about the government and taxes. We don't really have full democracy!
I don't think it's even close, I may be wrong(I often am) but think about the amount of money involved in the stock market and the amount of people who focus on that market. Now think about the sports market and the amount of money/people that focus on that market. Seems to me there would be a lot less efficiency in sports markets.
True but if I am trying to make $100,000 over the year I believe it is far easier to do it in the market than the sports world. Also, there is very little vig in the market whereas 50/50 gets you killed in sports. I can only go on my own experience but over the last 15 years I have only lost money 2 of those years in the market and in sports it is almost the exact opposite. Same for most of my friends and colleagues but again that is just personal experience. Unfortunately this looks like the third year of market losses. Ouch!!
This is not a beginners guide to stock market but check out this article comparing stock market and sports betting Interesting point about the government and taxes. We don't really have full democracy!
Thanks it IS a very interesting article although I would disagree with the main premise of the article that the stock market is gambling. While it can certainly seem like it and in the short term there can be tremendous volatility the ownership of stocks is owning companies and if the companies are solid eventually you will be a winner. Playing options or on margin can certainly change the equation but remember that in the long run (yes sometimes its a VERY long run) the trend of the market is up while in sports you always start with negative ev.
Thanks it IS a very interesting article although I would disagree with the main premise of the article that the stock market is gambling. While it can certainly seem like it and in the short term there can be tremendous volatility the ownership of stocks is owning companies and if the companies are solid eventually you will be a winner. Playing options or on margin can certainly change the equation but remember that in the long run (yes sometimes its a VERY long run) the trend of the market is up while in sports you always start with negative ev.
Stock market is technically gambling but I understand what you are trying to say though.
Stock market is low risk gamble. But again when you compare stockmarket trading to sports betting you shouldn't compare it to one single bet. If you are a pro betters who bets 2% or less of bankroll on each bet (and each bet must be done selectively...not degenerate bets) the variance would be similar to stock market. I guess it all depends on the investor and what he does. In sports we have many degenerates and there are only a very few who treat sports betting as investment, so with all the degenerate gamblers in sports betting, it comes out as negative investment/high risk gambling.
Stock market is technically gambling but I understand what you are trying to say though.
Stock market is low risk gamble. But again when you compare stockmarket trading to sports betting you shouldn't compare it to one single bet. If you are a pro betters who bets 2% or less of bankroll on each bet (and each bet must be done selectively...not degenerate bets) the variance would be similar to stock market. I guess it all depends on the investor and what he does. In sports we have many degenerates and there are only a very few who treat sports betting as investment, so with all the degenerate gamblers in sports betting, it comes out as negative investment/high risk gambling.
Agree with everything you said about gambling. In fact, I cant win cause I like the action. If there is a game on Thurs night I bet it. I will though again disagree that the stock market is gambling. Parts of the market (options, derivatives, futures etc) may be akin to gambling but if I buy stock in a company at the end of the day I own a piece of that company. It may go down in value or up but I still own my piece. No different than if I put my money into a bar I was opening.
Agree with everything you said about gambling. In fact, I cant win cause I like the action. If there is a game on Thurs night I bet it. I will though again disagree that the stock market is gambling. Parts of the market (options, derivatives, futures etc) may be akin to gambling but if I buy stock in a company at the end of the day I own a piece of that company. It may go down in value or up but I still own my piece. No different than if I put my money into a bar I was opening.
Yes you do own a piece of company but its about the value of the company. Lets say you buy 100 stocks at $10 for $1000. A year later the value of the stock is $2. Your $1000 investment is now worth $200. yes you still own a piece of the company but you still lost. It is same idea as win/loss in sports betting. If I used the $1000 to make $20 bets on point spreads....at the end of the year the value of my bankroll dpends on my performance...just like the company's performance that you bought stocks.
Yes you do own a piece of company but its about the value of the company. Lets say you buy 100 stocks at $10 for $1000. A year later the value of the stock is $2. Your $1000 investment is now worth $200. yes you still own a piece of the company but you still lost. It is same idea as win/loss in sports betting. If I used the $1000 to make $20 bets on point spreads....at the end of the year the value of my bankroll dpends on my performance...just like the company's performance that you bought stocks.
Agreed except you are assuming that I sell the stock. Assuming no dilution etc my percentage of the company remains the same and the market may simply be mispricing the stock. The market can be irrational. You have already won or lost and the game is over. Again, I am buying a piece of the company and I still own that same piece at the end of the year. Others may not think it is worth what I paid but if I still do then it doesnt matter. I am buying a piece of the company and its assets earnings etc. Under your analysis if I bought an ounce of silver with the same money I would be gambling. To gamble is to wager on an uncertain outcome. I am not doing this but rather buying a piece of a company no different than buying silver or a house.
Agreed except you are assuming that I sell the stock. Assuming no dilution etc my percentage of the company remains the same and the market may simply be mispricing the stock. The market can be irrational. You have already won or lost and the game is over. Again, I am buying a piece of the company and I still own that same piece at the end of the year. Others may not think it is worth what I paid but if I still do then it doesnt matter. I am buying a piece of the company and its assets earnings etc. Under your analysis if I bought an ounce of silver with the same money I would be gambling. To gamble is to wager on an uncertain outcome. I am not doing this but rather buying a piece of a company no different than buying silver or a house.
- If you are professional bettor, a lost bet is a 1 to 2% drop in your bankroll. You don't lose your bankroll by losing 1 bet. This is the common mistake many people make when they compare stockmarkets and sports betting because most degenerate bettors upload $100 to $1000 into their books on a weekly or monthly basis and gamble it away rather that following the money management rules. When you make set of bets at 1 to 2% your bankroll can go up and down, just like the value you invested in your stock.
- Yes, to gamble is to wager on an uncertain outcome. And stock market is uncertain. If stock market has a certain outcome, then everybody would be rich. You can say that you have studied your company and you have a projected profit/growth etc..it same as a professional bettor saying that he has studied all the games and found a value +ev bet.
- Things like silver, gold, etc are commodities. You cannot compare them with stocks of some company or sports betting.
NDFan221
Senior Member
Comments
The successful Investor by William J O'Neil definately worth the read, you have to be patient and follow the rules.
Basically generate a 2nd source of income
That would then bring up the next series of questions. How much time do you have to invest in the venture, how much capital are you able to deploy in the venture etc. Not trying to get personal but for example if you have $1 million and are trying to make an extra $100,000 a year it is vastly different from trying to make $100,000 a year on $100,000 of capital. The time is important because if you are at it full time you will have many more opportunities to profit from short term volatility in the market where as if you only have an hour a week you will have to look at it differently. There is a huge difference between trading and investing.
I was @ Lehman during the collapse in 2008... this is much bigger and much scarier... if Europe Banks default, the global economy is done. It will be historic.
That's why I've stocked up on plenty of lead...
Closed out my brokerage account and now invest in MLB.
http://www.investment-newsletter.com/index.php
Maybe it is just me and the circle of people I know but I could not disagree more with this statement. I and most I know make a good living trading the market but virtually no one makes a lot gambling. Low limits, problems getting paid, finding outs etc. Seems like even the best are only up a few units each year. I hear stories that this is a recent trend and in years past you could make a good living but I sure dont see it now.
I don't think it's even close, I may be wrong(I often am) but think about the amount of money involved in the stock market and the amount of people who focus on that market. Now think about the sports market and the amount of money/people that focus on that market. Seems to me there would be a lot less efficiency in sports markets.
True but if I am trying to make $100,000 over the year I believe it is far easier to do it in the market than the sports world. Also, there is very little vig in the market whereas 50/50 gets you killed in sports. I can only go on my own experience but over the last 15 years I have only lost money 2 of those years in the market and in sports it is almost the exact opposite. Same for most of my friends and colleagues but again that is just personal experience. Unfortunately this looks like the third year of market losses. Ouch!!
Thanks it IS a very interesting article although I would disagree with the main premise of the article that the stock market is gambling. While it can certainly seem like it and in the short term there can be tremendous volatility the ownership of stocks is owning companies and if the companies are solid eventually you will be a winner. Playing options or on margin can certainly change the equation but remember that in the long run (yes sometimes its a VERY long run) the trend of the market is up while in sports you always start with negative ev.
Stock market is technically gambling but I understand what you are trying to say though.
Stock market is low risk gamble. But again when you compare stockmarket trading to sports betting you shouldn't compare it to one single bet. If you are a pro betters who bets 2% or less of bankroll on each bet (and each bet must be done selectively...not degenerate bets) the variance would be similar to stock market. I guess it all depends on the investor and what he does. In sports we have many degenerates and there are only a very few who treat sports betting as investment, so with all the degenerate gamblers in sports betting, it comes out as negative investment/high risk gambling.
Agree with everything you said about gambling. In fact, I cant win cause I like the action. If there is a game on Thurs night I bet it. I will though again disagree that the stock market is gambling. Parts of the market (options, derivatives, futures etc) may be akin to gambling but if I buy stock in a company at the end of the day I own a piece of that company. It may go down in value or up but I still own my piece. No different than if I put my money into a bar I was opening.
Yes you do own a piece of company but its about the value of the company. Lets say you buy 100 stocks at $10 for $1000. A year later the value of the stock is $2. Your $1000 investment is now worth $200. yes you still own a piece of the company but you still lost. It is same idea as win/loss in sports betting. If I used the $1000 to make $20 bets on point spreads....at the end of the year the value of my bankroll dpends on my performance...just like the company's performance that you bought stocks.
Agreed except you are assuming that I sell the stock. Assuming no dilution etc my percentage of the company remains the same and the market may simply be mispricing the stock. The market can be irrational. You have already won or lost and the game is over. Again, I am buying a piece of the company and I still own that same piece at the end of the year. Others may not think it is worth what I paid but if I still do then it doesnt matter. I am buying a piece of the company and its assets earnings etc. Under your analysis if I bought an ounce of silver with the same money I would be gambling. To gamble is to wager on an uncertain outcome. I am not doing this but rather buying a piece of a company no different than buying silver or a house.
- If you are professional bettor, a lost bet is a 1 to 2% drop in your bankroll. You don't lose your bankroll by losing 1 bet. This is the common mistake many people make when they compare stockmarkets and sports betting because most degenerate bettors upload $100 to $1000 into their books on a weekly or monthly basis and gamble it away rather that following the money management rules. When you make set of bets at 1 to 2% your bankroll can go up and down, just like the value you invested in your stock.
- Yes, to gamble is to wager on an uncertain outcome. And stock market is uncertain. If stock market has a certain outcome, then everybody would be rich. You can say that you have studied your company and you have a projected profit/growth etc..it same as a professional bettor saying that he has studied all the games and found a value +ev bet.
- Things like silver, gold, etc are commodities. You cannot compare them with stocks of some company or sports betting.