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mutual funds which are made up of everyone of us from grandma to the mega rich pension funds are the big rich boys the media talks about. , only everyone who invests through funds is a big boy ,we have met the enemy and he is us.
folks like to talk about how the big players rig the markets and manipulate things but the big players are the likes of vanguard ,fidelity , t.rowe, etc etc etc and their shareholders are us.
fidelity and vanguard alone account for almost 5 trillion of our dollars, with the rest added in the mutual fund industry is handling 12 trillion dollars .
i would say that qualifies them as a rich market participant and we are that participant..
Last edited by mathjak107; 10-10-2014 at 04:05 AM..
Mutual funds are easy 'investing' as that's how the market players have marketed it (401k, etc) to the average working stiff. Just put 5-10% of your earnings in to an index fund for retirement and you should be comfortable in your latter years (while Fidelity etc. takes 2% off the top for fund management, and more recently an additional 15-30$ quarterly for account maintenance).
I haven't weened myself completely away from funds as I have a fair amount in an S&P 500 fund, but for US large & mid caps I have moved toward buying individual stocks. Risky maybe, but even in 2008, most of my holdings didn't lose as much as the indexes. Small caps and foreign stocks I still use funds since I don't have the time to research them.
I have yet to meet a person successful at day trading who has done it for 5 years or more.
my brother did it for a living . he only had to trade two stocks using proprietary software . trident energy and amgen. his firm had it all figured out. they couldn't lose.
needless to say that only lasted until it didn't and the firm closed up.
my brother did it for a living . he only had to trade two stocks using proprietary software . trident energy and amgen. his firm had it all figured out. they couldn't lose.
needless to say that only lasted until it didn't and the firm closed up.
Yep. The market will hand you your arse everytime you think you have it figured out. The biggest mistake traders make is not respecting the market and admitting when they are wrong.
And you consistently beat the market, overcome the fees and taxes, and are happy with the returns, is there any reason to really consider going long?
I can sum up my investment experience quite simply. When I have gone long, it has only caused me stress and grief. I've probably broken even in the past 5 years when going long stocks, although I have had some spectacular picks in the small caps after I refined my strategy. My best picks have come from stock picking news letters. With that info, I do the homework and make a decision on whether it's a good pick or not. This strategy has also been quite rewarding, but I shy away from it.
In general though, I hate going long for two reasons. The stock market scares me long term. Going long also ties up money that could be used to day trade. And I love to day trade
So anyways, I have heard millions of reasons why not to day trade. If your good enough at it though, is there any reason to stop?
The reason is that very few humans are consistently good at day trading, but many lie about being good. You do not know more than the markets do, and you do not even have the technical ability of large pros such as hedge funds to leverage custom computer algorithms and rapid trading to accurately exploit brief arbitrage opportunities. For most investors, day trading is invariably going to result in a much greater chance of losing one's shirt than going long in blue chips.
when the tide goes down the rich gets richer and the poorer get poorer...............lol. Kind of like NOW.
To be fair, it's mostly because the rich are smart and the poor are dumb. The rich would rather save their money and invest it, while the poor just want to spend every paycheck for instatnt gratification. A smart poor person has every chance to bring themselves up. My parents did it and so has many of my friends.
or should i say a started out poor but surrounded myself with smart rich people so i could pick their brains.
maybe you are right i am still a dumb person ,but a richer dumb person since i steal the ideas of the smart rich people.
as i always say you do not need to know much about anything ,as long as you know the smart people who do know.
i think most of my knowledge ,especially about retirement planning came from some of the smartest folks on the planet over at a forum i would frequent.
they were successful people who did retire early and there was so much to learn from them . throw in some famous researchers i follow and everything i bring to light on these forums i stole from others smarter than me and i am not ashamed to admit it.
or should i say a started out poor but surrounded myself with smart rich people so i could pick their brains.
maybe you are right i am still a dumb person ,but a richer dumb person since i steal the ideas of the smart rich people.
as i always say you do not need to know much about anything ,as long as you know the smart people who do know.
i think most of my knowledge ,especially about retirement planning came from some of the smartest folks on the planet over at a forum i would frequent.
they were successful people who did retire early and there was so much to learn from them . throw in some famous researchers i follow and everything i bring to light on these forums i stole from others smarter than me and i am not ashamed to admit it.
That was a smart statement. Can you tell us what kind of things were stolen? Advice, stock picks, business ideas? what?
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