Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
i disagree with that its only on paper statement folks make.
that money is all yours the same as money in a bank account. only difference is you chose to let it flucuate everyday.
no different than working on commission or working on salary. your pay check is still your pay check.
people have a funny way of thinking about money. how many times do you here people say they are playing with house money. bull, that money is your money the same as your interest is your money on your account.
money magazine once asked this question.
you are in your room in vegas and are up 1k from the night before.
do you bet the same,more or less the next night.
98% said they would bet more since they have the houses money.
they then asked this.
your in the room in vegas and you notice you subtracted wrong in your checkbook. you have 1k more than you realized.
do you bet the same ,less or more the next night.
98% again said they would bet the same as this is their money.
IT'S ALL YOUR MONEY IN EITHER CASE
it is foolish thinking but this is what goes on in our heads as humans .
i n fact after a few transactions and trades and years in the markets you have no clue what house money is .
i started investing 25 years ago. i couldn't even tell you what i started with and quite frankly who cares. every day it is all my own money.
Last edited by mathjak107; 12-23-2013 at 05:01 PM..
You're right mathjak, as usual, although I like to discourage all comparisons of investing to gambling.
One thing people forget with investments is that owning a block of stock or a fund is a distinct asset. Just because it is electronic and quoted every day does not change this fact.
Thus it is a dear mistake to look at your account every day and think, "Well if I sold it all right now I'd have $X," or "I lost $10,000 today." It's the wrong mentality. The quote cannot always be trusted to reflect the asset's real value.
If you wouldn't sell your house for 70 cents on the dollar, you shouldn't sell your stocks for 70 cents on the dollar either. It behooves people to keep tabs on an objective worth of what they own, fluctuations or not.
How high do we go before another round of nervousness in Feb/March over the debt ceiling?
The next 10%+ correction will be a doozy. Over 180 S&P points even from this level.
It may come after the 4th quarter earnings period. This very rare 12+ month rise with no 10% correction is setting the market up for a normal but deep correction.
The next 10%+ correction will be a doozy. Over 180 S&P points even from this level.
It may come after the 4th quarter earnings period. This very rare 12+ month rise with no 10% correction is setting the market up for a normal but deep correction.
Yes, I think we will definitely have a 10% or more correction next year, especially now that tapering has begun. S&P might hit 2000 before the correction starts though.
"Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves." -- Peter Lynch
"Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves." -- Peter Lynch
The next 10%+ correction will be a doozy. Over 180 S&P points even from this level.
It may come after the 4th quarter earnings period. This very rare 12+ month rise with no 10% correction is setting the market up for a normal but deep correction.
howard, you will be right........
....................
eventually............
The problem i have and other investors is that when you traders make predictions (like yours about a 10% correction coming), or icicles w/his collapse of the dollar and how commodities will take off...or those who predict armeggedon about bond prices when we have a rise in interest rates...
Those things could happen.....
The problem is you have no idea when they will happen...could be tomorrow....could be 40 years from now. And you have no idea how/if the reactions will be severe or not in the market....
Now your latest prediction is for a 10% collapse in the 1st Quarter of 2014, correct? Is that your latest prediction?? How about your predictions earlier in the year?
The market can stay irrational longer than you can stay solvent.
Diversify and stay the course...predictions are noise....
Thus it is a dear mistake to look at your account every day and think, "Well if I sold it all right now I'd have $X," or "I lost $10,000 today." It's the wrong mentality. The quote cannot always be trusted to reflect the asset's real value.
.
This contradicts what the other poster posted above. In reality value isn't there until you cash in - and in todays market, could be highly inflated.
On paper versus in-hand are two completely different things.....
value is always there.. it may vary slightly day by day but no different than a job that pays commission.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
