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It is true. However, whether or not you decide to follow on it depends on whether you are a risk averse or risk seeking individual.
Greater the risk, the greater the POTENTIAL return. Also the greater the potential loss.No. Greater the risk, greater the return, Finance 101
If what you said was true, investing would be easy.
It is true. However, whether or not you decide to follow on it depends on whether you are a risk averse or risk seeking individual.
Its amazing to me how much this is like poker. I guess any mechanism where you risk money to make money has the same principles.
In general, all things being equal a risk seeing individual will see a greater return over the long haul, but there is always the risk of ruin.
except in Poker the majority of players are net losers(that's why it's juicy for winners) while most long term investors are net winners dating back since the civil war.
However, there is one huge diference in the analogy to poker.
In poker, you can do things (raise, fold) that directly influence what others do. And you money is a big fraction of the total pool.
In investing/speculating, unless you're Bill Gates, what you do has no effect on what happens to others; you can't affect whether prices go up or down and you're just along for the ride.
It is potentially true. It is not always true.
It is just as truthful to say the greater the risk, the greater the loss. Just ask all the people who were in internet stocks in 2000.
Damnit, I can't tell 2cents and 1P1 apart!
LOL, don't know who used it first but I'll change it soon.
1P1's avatar sucks. Yours is okay, 2cents.
Damn. I'm glad I have a financial advisor who tells it to me in dumb-ass lingo.
"Get rid of the lease car, buy this stock, sell it now, save your cash...." This crap makes me nervous. The last time I sat down to watch stock readouts, 2 ing planes hit the World Trade Center and my partner lost $350,000 in 15 minutes.
Geez, I reread what I wrote and it really did sound like a load of mumbo jumbo crapola, didn't it?Damn. I'm glad I have a financial advisor who tells it to me in dumb-ass lingo.
"Get rid of the lease car, buy this stock, sell it now, save your cash...." This crap makes me nervous. The last time I sat down to watch stock readouts, 2 ing planes hit the World Trade Center and my partner lost $350,000 in 15 minutes.
Believe me, I'm no financial whiz. Evrything I know about investing I learned from morningstar.com over the past 8 years.
you're doomed.Evrything I know about investing I learned from morningstar.com
Sorry Manny...I have my avatars turned off...I hadn't realized 2cents copied off me
Where did I say that it's always true? Like you said in your earlier post...no one can successfully market time over the long haul. However, generally speaking, that's one of the most basic principles people follow in the stock market.
And of course you're right about the greater the risk, the greater the potential loss......hence the "Risk" part.
You could always go back to your bravatar!
Sorry Manny...I have my avatars turned off...I hadn't realized 2cents copied off me
^But then I'd be the only female with it. And then when new members join...they'd think I'm the forum or something.
You could change your le to "$3561 per night"
(hoping you read that thread or I'm really in for it)
You could change your le to "$3561 per night"
(hoping you read that thread or I'm really in for it)
What thread??????????????? Have you been talking about me, behind my back?
Well, we can't see your front anymore . . .
http://www.spurstalk.com/forums/showthread.php?t=42454
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