- Joined
- Aug 6, 2004
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Can I ask u guys a serious question?
I understand investing in a passive basket of stocks, bonds, commodities, currencies, crypto, gold - diversification is good.
But why waste your time trading individual stocks? You realize that most hedge fund managers underperform the market (S&P)? That means it's very hard to make money consistently over time, unless you guys have an edge, which you most certainly don't.
Furthermore, the big hedge funds have you beat on execution. They have the lowest fees, the highest speeds, and they even get to see the retail orders (your orders) before they're filled. So you're going to get eaten up on your entry and exit, meaning you're pretty much forced to buy and hold. Plus, there's so much info out there now, it's likely the professionals have more info than you, so any knowledge you have is likely to be priced in already.
You're basically just gambling. Probably better off playing roulette at a casino, at least you know what the odds are. Or sports betting.
So why trade? Why not just be a passive investor?
This isn't even taking into account that the market hasn't made sense for almost a decade due to QE and low interest rates. You have no transparency into what the Fed is going to do next as well.
diversification means less risk... and also, less reward.
lolz @ trying to compare this to gambling with examples where the house/bookie takes a cut. gtfo with that bullshit.