When in a casino know how much you can afford to lose before you start gambling. When investing in a rigged game it is good to know the odds. And the one with the most money and the most experience is usually going to win the pot of gold.
People are impressed by the big banks that look so prosperous, the big casinos that look so prosperous. But ask yourself where that money to build those things came from? The little guy without the most money and not nearly the experience and who does not take the odds or even more so who makes the odds. If you play for fun then that is what it is. If you invest for profit make it long term and don’t try to outsmart the smartest and most deep pocketed players for a quick buck, chances are very good you lose and they win.
Worked in a casino in 1972 and saw a lot. Have invested in stocks for even longer. Sometimes I win a little sometimes lose a little. Occasional big win on a small bet, sometimes a sizable loss on a big investment. So it goes.
When working on my MBA I was running out of money. I had been following a stock for a long time that was cyclical and it was down so I was pretty damn sure it was headed back up. Went to a broker to buy options on the stock. He convinced me I would do much better with one that he knew about. I bought it and lost everything. My stock went up as I had predicted and would have made a tidy sum and gotten back my original money. Be very wary of advice from brokers. Some are good and hard to find, most are not good and easy to find.
When in doubt play it safe and don’t try to make a killing cause it will usually be you. Invest for the long term.
Darrin Bell and Theron Heir