Trading is NOT a business

Says all that needs to be said.

 

Finally, I have come to the conclusion that one cannot generate any profits by trading. This is an expensive and very time consuming hobby which comes with a daily agony. I do admire the industry and its marketing machinery, as it continues to lure people into this fruitless business for a sheer endless money supply.

Greetings,
TF Trader



It seems ironic that someone who has concluded "that one cannot generate any profits by trading" has the name "TF Trader", maybe I'm missing something? :eek:

 

At least this nice, hardworking op newbie is doing his homework, but you sir, are going to get him killed .... by your TOTALLY UNINSPECTED assinine, hovine bovine earnings-as-a-stockmarket-driver hocus-pocus

(other newbies from far and wide watch now how this HERD member reacts and supporting herbivores come to assist him as THEY have been using "earnings" as a stable datum since biblical times.!))

In June 1991, The Wall Street Journal reported on a study by Goldman Sachs’s Barrie Wigmore, who found that “only 35% of stock price growth [in the 1980s] can be attributed to earnings and interest rates.” Wigmore concludes that all the rest is due simply to changing social attitudes toward holding stocks. Says the Journal, “[This] may have just blown a hole through this most cherished of Wall Street convictions.”

But wait, there's more ............


What about simply the trend of earnings vs. the stock market? Well, since 1932, corporate profits have been down in 19 years. The Dow rose in 14 of those years. In 1973-74, the Dow fell 46% while earnings rose 47%. 12-month earnings peaked at the bear market low. Earnings do not drive stocks.

When earnings give investors a rising sense of confidence, they can be a powerful backdrop for a downturn in stock prices. This was certainly true in 2000. Peak earnings coincided with the stock market’s all-time high and stayed strong right through the third quarter before finally succumbing to the bear market in stock prices. Investors who bought stocks based on strong earnings (and the trend of higher earnings) got killed.

 

>>>> Wigmore concludes that all the rest is due simply to changing social attitudes toward holding stocks <<<<

that conclusion, my friends, namely about the social attitudes is none other than what I've been trying to get thru' your thick skulls for 9 months. ..... its the collective footprint of the HERD which manifests as P R I C E on your chart.

 

When I decided to esscape from america at age 39, I asked myself this exact same question?

Assume I had x dollars and that in my thinking this sum would more than adequately see me thru' till a factor of 30% beyond what is considered a fckin long life.

So the magnificient question was, "would 2x or 3x or more" change anything for me?

The answer was NO

 

Where do you live?

 

I live in Thighland, approx. 850 klicks from Bangcock.

My total monthly expenses for EVERYTHING, same standard of middle-class living as when stateside, comes out to $1,850 per month (includes insurance, within country driving holidays and sight-seeing, pussy, as often as I want reataurant dining, decent wine, beer etc.)

Prior to Thailand, I had the same ditto setup in various countries in Latin America.

Same formula. Works consistently.

I have no debts.

 

Man who Bangcock often add to HERD in 9 months.

 

crgarcia was the first word that came to my mind too! that guy should be featured in ET's Hall of Wimps!

 

That is way too expensive for that part of the world and associated risks. is that basic cost of living or it includes lifestyle? Does it include rent?