I participated in the Carnival of Personal Finance this week, and kmull who hosted had a very interesting comment about my Extreme Trading post. It made me ask the question today, is stock trading really a game?
The comment left was, "The author argues that if you put in enough effort, you can 'play the game and become rich.' I disagree solely on the basis that investing is not a game to play. It is not betting."
If stock trading is not a game, then what is it? When you invest in a stock, you are betting one way or another that a stock is going to move up or down. Am I really off on this one? Poll is below (RSS Readers you may have to click through to vote). Please share any comments as well, I am interested to hear your thoughts.
Stock trading (unless you are doing soemthing illegal) it totally a "game". It has rules, it has players. it punishes the losers and prizes the winners. sure you could say that given the right information it would never be a game, or a wager but really there is always the "chance" factor. Makes equity trading more like casino night than . . . .
Anything this fun has to be considered a game. I consider pro sports a game although it's actually someone's job. Just because it takes skill to consistently get it right doesn't keep it from being a game.
As long as it's not completely transparent (i.e. Enron) it still has an element of betting in it. Even if all companies told the truth all the time, what the Fed does could be considered a gamble on the stocks for how they will react to the unknown.
Stock trading is a game. The safest way to play it is a game. Think about it like anything else and it'll mess with your head. This way you appreciate what happens, learn from it and make another move. Pass go and collect 200. Stay out of Jail. Those are the rules as far as I see it Blain.
Looking back at my own portfolio and chances taken, my game looks more like high stakes keno than anything you'd call a business! hahahaha