...This just summarizes the Chinese investors and their opinion of the stock market for me. The fact that Chinese investors perceive the stock market as a better gamble than the casino is indicative of how when the market is running, everybody can make money even a craps shooter who doesn’t know the difference between a bid from an ask. So obviously this is the Year of the Bull in China.
Kenny Rogers, songwriter and performing artist wrote the Gambler in 1978. In China, today he could pass for a stock market analyst having coined this lyric: "You've got to know when to hold 'em/Know when to fold 'em." What superb advice. When it comes to the stock market it is a lot more difficult to know when to fold em.
Let's fast forward to what US investors must be thinking. I imagine that if you bought one or two stocks you are considered an investor, but if you go to Vegas twice a year you are not considered a gambler. In choosing between the casino and the stock market for sure it’s more a matter of how you want to lose your money. Do you prefer dancing girls, entertainment and drinks or watching CNBC, reading the Wall Street Journal, and dealing with brokers. I can see this as a quandary, but in Macau they have made their choice.
The outgrowth of this movement can only lead to disaster. The mentality of gambling in the stock market should be checked at the door. What’s next, investor anonymous, IA, for the treatment of a serious investor addiction. By the way, the stock market can be addictive and there are people who cannot break away from watching a level 2 or 3 machine; I know - I did it for many years.
The rise of day trading and discount brokers increased the investor base by the millions. Now, with ETF’s, the attraction to liquidity and news and information today investors are analysts, stock pickers and financiers, especially in their own minds. My sage advice is simple; in a market that you can throw a dart at a stock and it goes up and runs the table is unusual and difficult to sustain. There will come a point where exiting the stock market will be a bloodbath. Inexperience is no excuse to lose money, just like in the casino at a blackjack table when inexperience ruins the table. Education is the key to investing. Investing in risky stocks should only be done with money you can afford to lose. Nothing goes up forever.
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