Investor has bumped its way to the top.
"Trader Nation"
One of the greater points Peris makes in his book is about Trader Nation. He explains that more and more people are making money by taking advantage of near-term stock price movements. Instead of investing in the stock market, more and more people are "playing" the stock market like a game at a casino. Yes sometimes you win and some win big, but most of the time you lose.
Peris also explains the difference between investing in the stock market and investing in companies through the stock market. The stock market is full of volatility and is constantly changing on the whim of speculation. Just because a share price drops 5% in a day or week doesn't mean an established company is affected by it. Investors need to step back and realize that the quality businesses we invest in our not anywhere near as volatile as the stock market itself.
"The Strategic Dividend Investor outlines the key issues you need to address in order to create a solid dividend portfolio, including how to:
"The Strategic Dividend Investor outlines the key issues you need to address in order to create a solid dividend portfolio, including how to:
- View the stock market as a business venture rather than as a platform for speculation.
- Strike the right balance between current yield and dividend growth.
- Learn to assess the ability and inclination of a company to pay and increase its dividend over time."
7 comments:
I certainly think that your view of the stock market determines very much if you make any money investing in stocks. If you view the stock market as a business venture I think you can make money in the long term. If you view investing in stock as a gamble I do not think you will make money.
I have met both types of investors over the years and it seems to me that it is the former who has made money and the latter who has lost money.
I agree with you 100% Susan. I always correct people when they say I play the stock market because I don't; I invest in the stock market. It's two completely different things.
Some people like to do both. Trade and invest. If you do this, they should be kept separate in 2 different accounts due to different levels of risk. Trading would for trades of stocks, futures, options or Forex. Investing for dividend paying stocks, REITs, and bonds, that pay you income. In the investing account is for holding things for the long term.
I do believe most people should only do investing, and hole for the long term.
A lot of people think the days of buy and hold investing are gone. With derivatives and other casino-like products to buy and sell, it's really turned the stock market into a spectacle of speculation rather than a place of capital investment.
There is mention of a transfer tax in the book, perhaps that would help keep the gamblers in the casino and the investors with the markets.
I'm reading that one now... After reading dozens of books on dividend investing, it all starts to sound the same... It is hard to teach an old dog new tricks... LOL
I hear ya TD. I thought it was a really good read.
Not disagreeing with you A2D...It is a good read... I'm just getting starting to get bored...
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