Why Do People Trade when the Failure Rate is So High?

[mschey]

Quote from stockgirl:

If +90% of people fail at trading then why would anyone risk trading any type of investment vehicle when the odds are stacked against the average retail investor?

Also, should retail investors be allowed to trade stocks without some type of certification or training?

The notion of more regulation is complete crap. I believe that government needs to get out of our lives and let us live.

The FED....get rid of them. Who are they to determine that too much growth is bad! We end up paying a hell of a price to have "moderate" growth.

SEC....they take down a few small fish, but never really go after the big time illegal shit that happens. How about the firms that let hedge funds fleece their small investors by allowing fund timing.

Sarbanes Oxley --- another nightmare...keeps the accountants and lawyers rich.

Lawyers...shoot them all. They didn't need attorney's in the wild west, because if you screwed someone over you'd end up dead. That's one hell of a deterent. Back then your word was your bond, and that's all that was needed.

Judges....make decisions about right and wrong....not your job to make new law.

Taxes -- How about taxing buffet, gates and those other rich bastards. The middle class pay all the taxes, and do all the work. We are indentured servants..if you think not...try not paying taxes! How about that Theresa Heinz Kerry....made 10 million and paid 1 million in taxes. You have got to be kidding me... someone who makes 200k pays in damn near 100k in taxes. COMPLETE BULLSHIT.


The welfare state....nothing worse then a few lazy bastards spending their time drinking and reproducing more lazy bastards that live off the hard work of the middle class.

I could go on...but I'll leave it at that. I've got to work out, just writing this paragraph has got my blood boiling.

 

[mschey]

Quote from stockgirl:

you said "many women", so you must must know of at least one woman who knows what a tire iron is...shame on you for stereotyping women traders :eek:

I misspoke. I don't know any women who know what a tire iron is. How bout that picture...preferably you in a bikini...holding a tire iron.

 

[stock_trad3r]

Quote from stockgirl:

If +90% of people fail at trading then why would anyone risk trading any type of investment vehicle when the odds are stacked against the average retail investor?

Also, should retail investors be allowed to trade stocks without some type of certification or training?

if you dont like trading, leave. I trade cause it is a fun hobby. Stocks go up and I make $$ and stocks go dow and I lose $$.

 

[stockgirl]

Quote from mschey:

I feel like you should post a picture...we'd like to see if you really are a woman. I don't know many women who know what a tire iron is.

even dumb a$$ women traders know how to search the internet: mad:

 

[mschey]

Quote from stockgirl:

even dumb a$$ women traders know how to search the internet: mad:

I never said you were a dumb ass woman. So what do you trade?

 

[jbtrader23]

Quote from Don Bright:

Why do people start any business when 90% fail? At least there is no "franchise" fee, long term leases, or employees to deal with.

No "promises of big money" from me...only the above mentioned "low barrier to entry" - and where else can you borrow a $million every day for free.

I'm sure glad that Bob and I got involved back in the 1970's (on the trader side of the business). Entrepreneurship is still viable in the world.

IMO,

Don

I can't think of too many other businesses where you can start with just a few thousand dollars.

-Low barriers to entry
-The lure of a fast education
-Infomericals/Wade Cook type guys, etc
-The lure of simplicity (buy when the light is green, sell when it's red!!)
-Tremendous upside
-Anyone can do it. Men, women, old, young, fat, thin.

 

[jho]

Quote from mschey:

So what do you trade?

stockgirl.

 

[Aok]

Money for nothing.

Chicks for free.

Risk pays.

Quote from stockgirl:

If +90% of people fail at trading then why would anyone risk trading any type of investment vehicle when the odds are stacked against the average retail investor?

Also, should retail investors be allowed to trade stocks without some type of certification or training?

 

[CaptainObvious]

Lets not argue over what a tire iron is. A baseball bat would suffice as well. Can we all agree anyone wanting more government intrusion should be beat with something, anything?!

 

[Hydroblunt]

Quote from mschey:

Taxes -- How about taxing buffet, gates and those other rich bastards. The middle class pay all the taxes, and do all the work. We are indentured servants..if you think not...try not paying taxes! How about that Theresa Heinz Kerry....made 10 million and paid 1 million in taxes. You have got to be kidding me... someone who makes 200k pays in damn near 100k in taxes. COMPLETE BULLSHIT.

That's because you can't hide your money like they can and the tax law is modified by the very rich to favor them, not you. Estate tax anyone, lol?
Either way, the very rich still pay more than middle class. They just have that much money piled on top of old money. If half the loopholes were closed, US government could probably run a serious yearly surplus (excluding the war)

The welfare state....nothing worse then a few lazy bastards spending their time drinking and reproducing more lazy bastards that live off the hard work of the middle class.

The rich have to throw the poor just enough to keep them from uprising but not enough to make any real advancement. It's been like this for centuries and whenever the balance is altered, there was a revolution.
Your ideal "free market" "laissez faire" capitalism is a daydream. Screw the theory, in real life raw capitalism creates revolutions & uprisings because it's nothing more than serfdom.

To loop it back to the mysterious stockgirl (who I suspect is male). Financial markets like equities are used as a form of wealth transfer. So whatever the reason is, it don't matter, the math behind it says that most have to lose.
And like I said, it's the same or prob worse with actors in USA. But what drives them is more passion than greed. Trading is a bit similiar, most of the losers are addicted to it, addicted to the adrenaline rush and addicted to the dream of riches. Kinda like the addiction to the "American Dream" which moves 90% of the masses into a perpetual rat race.