Why I Don't Play Stocks?
Q: Here's how I see the stock market. FYI, I've never bought any stock and I hardly ever read 'Wall Street Journal', or other stock related paper. My opinion might be wrong. If so, correct me with reasons. 1. From the pockets of other stock buyers. 2. From company profits.
A:
Ok, I have to disagree with you on some points. The reason you PUT the money
on the market, is so you can gain some back. Now, regardless of whether you
are a LONG TERM investor, (GAME #2) or short term investor (trader) (GAME
#1), you are in it for the money. I believe we all are in it for the money.
Why not take advantage of making say, t
game plan 2, but in a much shorter amount of time?
It is like saying SHORTING stocks is immoral. Well, some people may view it
that way, but the big institutions and brokerage firms do it with our money
and stick it to us, why not do it ourselves?
Again, I have to say that we are all investing or trading for money. To earn
a living. You buy it low, and you sell it higher. Heck.. It is like
EXPORT-IMPORT business. You buy it at a lower price and you sell it at a
higher price. Now, for some products, you may have to wait longer to sell your
product, but in some cases you sell it faster, and still make the money.
Personally I preffer doing game # 1, for the obvious reasons. # 1 I spent my
countless hours on learning technical analysis. I had my BIG share of loses
over the years, but I learned from them, and now can gladly say that I make
anywhere between 25-30% playing game #1. Reason #2 is making 25% in one year (2%
a month), and not have to wait for 5 years to make MAYBE 10% a year at the
bank by putting it on a CD or something of that nature.
Once you learn, you can also play game #1. It is like me going to Vegas,
playing BlackJack (which I played ONLY A FEW times), and trying to beat the
dealer in the game he is in contact with ALL DAY! None of us can beat 'Wall
Street' by just buying and holding stocks. They WILL short you - might as
well short someone else.
I've been trading stocks regularly and persistently for more than
41 years now. Until the parent company became de facto bankrupt
(more about how they did it later), and their editorial stance
changed radically, I read the WSJ every single day beginning some
months before I began trading and ending ONLY when they went so
biased and limited in their editorial slant as to become useless.
My opinion is REGULARLY wrong on specific stocks, but this is a
"right minus wrong" kind of situation in which my net result
depends, not so much, on the answer to any specific question as it
does on the overall tendency to get it "right enough" to make
money in the relevant time frames.
Daytraders provide liquidity to the market in return for the edge they get
trading. It is the daytrader who makes it possible for the investors to buy or
sell stocks on a whim, in seconds.