Placing Bets

The stock market, in the most broadest sense, is like gambling. When purchasing (or short selling) a stock or equity you are placing a “bet” on it in hopes that it makes a return for you when you liquidate it into cash. Even when purchasing a stock for its dividends is a gamble, although it may be a conservative bet there are still “odds” accompanying the investment.

As you can see gambling terms and investing/trading terms can be interchangeable. So, terminology can be used interchangeably whether you are playing a casino-type table game, buying and selling equities, investing in real estate, collectables, etc.

All of life is Continue reading

You Can’t Win By Speculating

Speculating in the stock markets will likely not lead your to success in the stock markets. In fact speculating in anything will likely not bring you success. It’s almost synonymous with gambling. That’s why I say in order to be successful, build systems.

The main driving force behind speculating is emotion. And when your emotion takes the wheel when making decisions, it often times ends you up in a ditch. It’s because emotional decisions are often times irrational. That’s why the whole greed and fear aspect of the stock market holds true. You can basically conclude that the stock market fluctuations are people’s emotional data of what they feeling in any given market, equity, commodity, etc.

In my opinion, it is rare that any publicly traded company, commodity, etc., really is Continue reading

To Be Successful, Build Systems

What do the super rich and successful business people, entrepreneurs, and investors do that makes them so? It’s not just invest. Nor just hire smart people to do the jobs. It’s something that is not widely taught or advised on by mainstream business education. Yet all the uber-successful utilize it.

The super successful build systems. If you research and study the successful people in their area of success whether it’s in business, investing, sports, etc., they have built and implemented some sort of system in their venture(s).

Businesses implement operational systems, winning sports teams have structured training regimens, the United States Of America have the capitalism system, and successful investors have their number equations to calculate their risk versus reward computations before committing to any investment.

Some notable successful people who utilized systems: Continue reading

95% Of People Lose Money In The Stock Market

Yes it’s true. I guess trading the stock market is not exempt from Pareto’s Principle. The 80/20 principle as it is known, or the “law of the vital few”. The few that makes up of majority of the results.

In the movie/documentary, “The Secret”, Bob Proctor paraphrased, “1% of the population holds or controls 80% of the world’s wealth”.

And yes, Continue reading