you really can't count on stock market, Even if you make a little profit sometimes, you will lose it?

Question

on other stocks or another times, do you agree or disagree and why

Answer 1

Trading, the short term speculating, can easily be no better than gambling. In books by Graham and by Bogel, famous investors both, they likened common stock picking to playing casino games.

Investing, purposefully, is distinctly different. Yes, you could lose money, but it most often happens the same way you lose money on a car purchase--buy selling it before you've gained your value. Lost a job and couldn't afford it, selling it to pay some bills like medical expenses, grow tired of it shortly after purchase--these will be expensive, whether selling your car or your stocks. Selling a stock because you discovered the bosses were rats (Enron, Tyco) is one thing. Selling during a market downturn because you paniced like the rest of the herd is something else entirely.

But if you bought Apple when it was $10, like I did, and kept it, like I didn't, it would be worth far, far more than the same money in the bank all this time. If you bought WalMart when it was $6, like back when I worked there, um, a few years back, and kept it, even after losing value in the last couple years, you would still have done far better than if that same money was left in a bank to draw interest. Especially if the stock is a steady dividend payer, like my Phillips, ConocoPhillips today, has done, it has far from lost me money.

If you plant a tree, the tree may die. But it may grow, and give you fruit from time to time. Which is worth more to you? An apple in hand, or planting the seeds of that apple and making more apples? That is the real question. Trading market value is a gamble. Growing intrinsic company value is a whole different game.

Answer 2

The news media make a big thing out of nothing. There are people profiting from this all the time. The people who sold when the market was up made money, the people that have cash right now can make money, people that bet the market will go down make money, people who don't sell haven't lost anything. The real trouble is that people don't know if it's a temporary thing or it simply was a huge bubble. some will profit and some will loose money but if it was all a bubble, then it's sad for those who bought at the top and since everyone is really poorer that they thought, it will probably end up affecting employment, economic growth and everyday life in general. But right now it's simply that they don't have any other news to cover.

Answer 3

Making money in stocks is NOT a gamble in the long run. There is only one 10 year period in the last 80 years that stocks have lost money over the 10-year period. The average return on stocks is over 9%. $100 invested in the S&P 500 in 1968 is worth over $1,500 today. The US economy is growing and will continue to do so. Therefore, with prudent choices and a long term perspective you are bound to make money in stocks.

But, you MUST be diversified to decrease your risks in any one stock. You should not go into stocks unless you can afford to buy into at least 10 diffferent stocks at once. And you MUST have a long term perspective -- at least 10 years.

Answer 4

I agree that you will loose money sometimes, but if you know what you are doing you should still stay ahead.
I only trade stocks and options, on the stocks I get about a 80% success rate. I cut my losses fast and let the winners run up. On options I would say I get about a 70% sucess rate. I always trade with a system. I don't get emotional with any stock. They are just numbers to me. I have heard a lot of traders say "I just know this is a good company" I personally don't care if it's good or bad. I just want it to make me money.

Answer 5

Aside from a decrease in stock prices, you can also lose the profits you've earned because of the transaction costs (commissions paid to brokers etc) that are included when selling your shares.

As much as possible, limit risk exposure by determining the amount you are willing to lose. Keep track of the stocks you invested and diversify your portfolio. And choose your stock broker wisely.

Answer 6

The key is to make more than a "little profit." Minimize your losses on the few. Pros do it this way. Study your mistakes, are you buying too high? Panicking? Buying stocks with too high debt? If you can't make good annual profits you're doing something wrong.

Answer 7

I think stock is 80% knowledge, 20% luck. See my thoughts at www.stockpickguide.com

Answer 8

If you approach it like a casino, you will lose money. If you do your homework you can safely profit by joining in with good comapnies doing what they know best, making money.

Answer 9

short term thinking says no for stock market.
LONG term profitable thinking says yes.
Risk is a given in any endeavor.

Answer 10

investing is a long term thing if your looking to score big in a short time that only happens for the few lucky investors. you have to look at it as a long term investment.