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Stock Market - don't be the Investor

Discussion in 'General Investing Discussion' started by Tropo, 9th Jul, 2008.

  1. Tropo

    Tropo Well-Known Member

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    Stock Market - don't be the Investor

    Most people adhere not only to a single pure form of these strategies. They rotate between them, they try different flavors of them, they mix things up, they even start an investment with one strategy and close it with another. Or they start trading and end up with an investment.
    Nonetheless the latter behaviors seem to have all good arguments. The former types of investors are in one sense rare - if a statistical inquiry were conducted, most participants would think of themselves belonging to the smarter group and would associate their reasoning of what they are doing to the latter strategies.

    This widespread optimism probably causes the general belief, that investing in the stock market will make people wealthy.

    Now let's consider a different view of the underlying mechanism........

    More is here ...... The stock market and its dark secrets
     
  2. crc_error

    crc_error The Rule of 72

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    interesting read... but one thing they didn't mention is that companies collect money from their customers, and this cash is bought onto the cash table, hence the cash table does actually grow, rather than been a negative pie with everyone taking from it and no money actually coming in.

    The other point is new players come onto the table with their new 'investment' money, this raises the stock price, essentially been a pyramid.

    so although its a good read, in reality isn't true.. :eek:
     
  3. Tropo

    Tropo Well-Known Member

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    Well...it all depends how do you perceive reality... :rolleyes:
     
  4. AsxBroker

    AsxBroker Well-Known Member

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    Also it's got a US tilt to it, not all Australian stocks have market makers, obviously things like MIG and MAP do but the majority of other stocks don't have market makers trying to prop up stock prices.

    Cheers,

    Dan
     
  5. Tropo

    Tropo Well-Known Member

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    Not only market makers prop up stock prices.
    Individuals with deep pockets can do it easily. ;)
     
  6. Billv

    Billv Getting there

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    And I thought that by buying shares I was a part owner of the business.
    Oh well, it's good I sold those imaginary pieces of paper to Mr. Clever...:D