traders take more risks, and therefore are more likely to lose, or win big. Investors take less risk, can lose a lot less, and still make it big. I think the risk/return reward is more favorable for investors.
The market is only a casino to the type of people who frequent places like Wallstreetbets. Rather than invest time and discipline into analysis and learn the skills necessary to win they would prefer to take the easy route that leads to failure. Coordinated pumping, such as they and other Discord groups need to use in order to boost a company's share price, will not last. You have senators like Elizabeth Warren already pressuring the SEC on it, as well as Yellin meeting on it. As soon as they put the screws to Reddit and Discord it's over, because they are not going to get hit over it. If a person needs to coordinate with other people in order to make money then they are not a real trader. A true trader can find and pick a stock without the help of another and be a consistent winner in ROI %.
I agree with this...WSB and all of its spin offs have become nothing more than a platform to pump whatever people are bagholding. back in the day it was mostly just people people posting loss porn from horrible gambles or gain porn from wild lucky positions. I fear that it will never be the same after this.
I'm not trying to be braggadocios or demeaning here, but I've played this game from a time when commissions were $25/trade and there was no internet. I've read a few books, the classics, and there's certain things I retain. One of them is this: If you think someone is out to get you, (for lack of a better phraseology) ... you're nuts. I've been a member of at least a 1/2 dozen forums and chatrooms over the years. I remember a guy that swore up and down that BATS was out to get him. In the sense that "BATS" was an actual person. He only traded Decker (the shoe company $DECK), and he did so in a big way. I mean like $200K per order. On a low volume stock. He would get screwed daily. He lost tons and tons of money. He was obsessed with beating "BATS". This: Bats Global Markets was a U.S.-based exchange that listed several different types of investments, including equities, options, and foreign exchange. It was founded in 2005 and was acquired by CBOE Holdings (CBOE) in 2017. Prior to being acquired, Bats Global Market was one of the largest U.S. exchanges and well known for its services to broker-dealers as well as retail and institutional investors. There was no person "out to get him". Its just the way these things work. I told him to quit trading that particular stock.... he wouldn't listen. He was obsessed with the Level II, and he was obsessed with BATS. In this game, you need to understand what goes on behind the scenes. Behind the curtain. In a nutshell, you have to realize you are in fact a huge disadvantage as a retail schmuck. That's why you stay away from certain stocks on certain days. You're a minnow trying to swim upstream. Do so when there's a million other minnows out there. The opportunity presents itself daily. Another day, another stock. It's the friggin beauty of it all. But if you think you're destined to lose because "the game is rigged against you".... you are gonna lose. Make no mistake... It IS rigged against you. .....But what matters is what you do with that knowledge. -vz
Good thread, interesting perspectives. Like a casino, trading can be addictive. in trading, it's important to only put on trades when you've got an edge or a clear technical advantage based on experience. Traders get into trouble when they trade marginal setups, as I know from lessons learned and experience the hard way. The one and only way to consistently make money in a casino is to play poker against less-skilled opponents. Period. similarly, the only way to make money in the markets consistently is by developing and using skills and have been learned over many years of trial and error. And even then, sometimes we can be our own worst enemies if we don't follow our rules or become too stubborn. What works over the long term is to test out patterns that are relatively consistent, use them appropriately when the market technicals line up, and use correct risk management and position sizing to help make the most of your trades.
I am aware that I assumed a rather ridiculous definition of "trader," even though there is some truth in it.
at 30000 feet level, stock markets I think are like a ponzi scheme (new money and FED money support the old money). at daily level, yes, it's like a casino, battles between market makers, hedge funds, banks, prop firms, and retail traders are constantly going on to outwit the other guys for squeezing a few bucks or for better fills. I've seen headfakes, shaking out, phony sizing, fake quotes