Comments on: How to get back into stocks http://blogs.reuters.com/reuters-wealth/2010/11/19/how-to-get-back-into-the-stock-market/ Fri, 05 Dec 2014 11:27:18 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: tmc http://blogs.reuters.com/reuters-wealth/2010/11/19/how-to-get-back-into-the-stock-market/comment-page-1/#comment-1533 Tue, 23 Nov 2010 10:40:16 +0000 http://blogs.reuters.com/deep-pocket/?p=3040#comment-1533 Financial Markets vs. Las Vegas
In the Financial Markets – there are many, many “financial instruments” that you can buy and they vary daily.
In Las Vegas – there are a limited number of games you can play.
In the Financial Markets – they won’t tell you about all of the Financial instruments, just the ones they think they can do the best with (meaning get the most of your money).
In Las Vegas – you can choose the game you want to play.
In the Financial Markets – once you start a financial instrument, you can’t just change to another without paying more.
In Las Vegas – you can switch between games at your leisure. Even between casinos with no fees.
In the Financial Markets – they can’t tell you what you will make on the instrument.
In Las Vegas – you know how much you stand to win.
In the Financial Markets – they can’t tell you how much you will loose.
In Las Vegas – you know exactly what you stand to loose.
In the Financial Markets – exactly how a financial instrument works is a mystery to 95% of the people, including those that are selling it to you. They don’t really know exactly where the money goes, you just get a piece of paper mailed to you with what they think you should have made or lost. You really don’t have any way of verifying it at all. Just trust them.
In Las Vegas – you know exactly how a game works. Anyone involved can explain it to you in simple terms. You can always verify the results. Trust you own eyes.
In the Financial Markets – the rules “are subject to change” and you may or may not be notified
In Las Vegas – the rules to each game are well known and cannot change.
In the Financial Markets – there are almost no regulations or rules that they have to follow.
In Las Vegas – the casinos are very tightly regulated.
In the Financial Markets – it is difficult to find any real, cohesive information on who regulates what. It is very confusing.
In Las Vegas – the regulations are publicly posted and easily found by the common person with a quick Google search.

I could go on….
If we all invested only in things we understand and can be measured, then Wall street would not exist.

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