Quote for the Week
Perhaps enough has been said to indicate the principal difficulties which beset the speculator who attempts to profit by the short swings of the stock. For practical purposes the occurrence of ripples and waves in the price movement is unpredictable. To attempt to trade on such movements is mere gambling with the odds against the trader by a considerable margin. It is astounding that thousands of otherwise intelligent persons persist in trying to make money in this way. Commonly accepted figures of somewhat dubious origin are frequently cited to show that 90% to 95% of all margin trades lose money in the stock market. The deep-seated gambling instinct, the well-founded belief that in widely fluctuating markets there must be opportunities for profit nevertheless bring fresh recruits to the brokerage offices in constant streams. A few of them ultimately learn the methods by which money may actually be made in the stock market. — Philip Carret (source)
From the Archives
Last Call
- If People Talk About a Bubble, It’s Unlikely to Crash Soon – Klement on Investing
- 24-Hour Trading? Log Off – FT Alphaville
- When It’s Worth Paying Up for Funds, and When It’s Not – J. Ptak
- Trillionaire – Owenomics
- How Your Brain’s “Break-Even” Bias Creates Mispricings – L. Swedroe
- The Bias that Makes Disagreement So Hard – Milkman Delivers
- Rethinking Fast and Slow – Learning Dispatch
- Trapped in the Hell of Social Comparison – Noahpinion
- Joy at 1,667 Feet – V. Khandelwal
- A Few Things I’m Pretty Sure About – M. Housel