Investing is different than trading...
Mutual funds, that have been around for at least 5-10 years, with good track records are great for investing.. The annual return should average around 12%... this should be a part of everyone's diversified portfolio..
Trading is totally different... In both the commodity and stock markets, there is money (tons of it) to be made each and every day.. You simply need to become informed of whats going on..
A trader and an investor are 2 completely different animals..
Mutual funds, that have been around for at least 5-10 years, with good track records are great for investing.. The annual return should average around 12%... this should be a part of everyone's diversified portfolio..
Trading is totally different... In both the commodity and stock markets, there is money (tons of it) to be made each and every day.. You simply need to become informed of whats going on..
A trader and an investor are 2 completely different animals..
I dont know anything about the stock market but ice mentioned about the analyst on tv being like touts I was thinking about this before and they got it made if they buy an average stock when its at a fairly good price then the next day go on tv and tout this stock then a lot of people are gonna buy it so the price goes up then the analyst sells his stock for a quick profit and he always got a good record cause his stocks always goes up seems like a sweet deal
Stocks said:
not sure if one guys voice would be that strong, to influence the market. But I see what you are saying it just seems like their are so many variables that effect prices and it just don't make alot of sense to me. Just seems like pure gambling in the truest sense of the world.
2 things that have come out of this discussion that has kept me open minded:
1) stocks are long term (so true and proboably my downfall as a small "investor", that is I am very influenced by sports betting that has a "true" result in just a few hours)
2) zero sum game, not even sure if that is true but if so (and I think it is) than this means you can easily turn this to a +ev situation if you have patience, skill and luck.
It seems to me like the Stock market is a good place for those who have a great deal of money. You can do a lot with a little in sports betting, but not really with the stock market.
I gamble for a living now, but as I make more and more money I'm planning on putting some of the excess into the stock market instead.
I gamble for a living now, but as I make more and more money I'm planning on putting some of the excess into the stock market instead.
Most mutual fund managers fail to beat the market. (About 80%)
A good number of hedge fund and private equity fund managers do beat the market consistently. They are able to do this because they have much more flexibility than mutual fund managers (They dont have to keep X% of the money in certain types of stocks, they can buy and sell derivatives, they can use leverage, they can short things)
You'll never know what % beat the market because they are not all published.
Sadly you need $1M or $200,000/year income to invest in these.
Many of these funds dont take under $5M.
A good source is Trader magazine - it can be picked up at BN/Borders, etc... A great read were the 100 highest earning traders about 2 or 3 months ago. Some very interesting funds represented. Some making 30+% yearly for 8 or 10 years.
-Sean
A good number of hedge fund and private equity fund managers do beat the market consistently. They are able to do this because they have much more flexibility than mutual fund managers (They dont have to keep X% of the money in certain types of stocks, they can buy and sell derivatives, they can use leverage, they can short things)
You'll never know what % beat the market because they are not all published.
Sadly you need $1M or $200,000/year income to invest in these.
Many of these funds dont take under $5M.
A good source is Trader magazine - it can be picked up at BN/Borders, etc... A great read were the 100 highest earning traders about 2 or 3 months ago. Some very interesting funds represented. Some making 30+% yearly for 8 or 10 years.
-Sean
