Is playing the stock market a sure fire way to get rich?

[Ostronomos]

Hello,

I was reading this book about tracking economic success by studying consumer behavior. It took a whole-systems approach to understanding the economy. I found the idea of consumer spending and economic success intriguing. Can anyone tell me if they have had any success playing the stock market? What are some of the challenges we face along the way to becoming wealthy through the stock market?

 

[PoetPhilosopher]

Hello,

I was reading this book about tracking economic success by studying consumer behavior. It took a whole-systems approach to understanding the economy. I found the idea of consumer spending and economic success intriguing. Can anyone tell me if they have had any success playing the stock market? What are some of the challenges we face along the way to becoming wealthy through the stock market?

I've known people who have invested substantial sums in the stock market. They don't seem overly happy. Their stocks go up and down, and their mood goes up and down as a result. The stock market can be risky, so I'd say if it's money that you really need for living on - don't put it in the stock market.

 

[PoetPhilosopher]

I actually propose a better way than the stock market. It's "study things carefully, be wise, and try to be financially savvy". This road could cause you to reject the stock market. Or it could, in some cases, even cause you to make investments, including in the stock market. But I see it as the best idea I've found for managing money.

So, what I'm suggesting, is that for people starting out - it might be better to try to emulate Dave Ramsey's ideas, rather than try to be the next Warren Buffett.

 

[Bthoth]

Hello,

What are some of the challenges we face along the way to becoming wealthy through the stock market?

Self discipline combined to research.

 

[Quagmire]

Hello,

I was reading this book about tracking economic success by studying consumer behavior. It took a whole-systems approach to understanding the economy. I found the idea of consumer spending and economic success intriguing. Can anyone tell me if they have had any success playing the stock market? What are some of the challenges we face along the way to becoming wealthy through the stock market?

Sure fire? Nope.

For most people, that is people who aren't mathematical geniuses; can't commit their entire waking life to studying charts and analyzing trends; and don't have nerves of titanium, 'playing' the market can be a recipe for financial disaster.

On the other hand investing in an index fund, and/or a solid mutual fund you can reasonably expect to average around 10% a year over the long run, which is light years better than your going to get from a savings account.

 

[Quintessence]

The problem with the stock market - and why the notion of it being a free market is a joke - is that it takes money to make money by gaming this system. If you don't already have substantial money to invest, you won't get high returns except in rare instances of explosive chance growth of your investment (aka, basically akin to winning the lottery). This same problem occurs in other types of investments, granted - once chatted with a consultant who tried to convince me to do some of these games? My rate of return would've been so pathetic because I simply don't have the money to put forward I more or less told them to go away and bother the rich people.