From the beginning of time, people have been looking for an easy (easier) way to get rich. I’m not convinced any such way exists. If it does, I certainly haven’t found it yet.
Would you please let me know if you have???
Until I find the investing magic bullet, I’m going to follow dividend and index investing principles. To continually improve my financial acumen, I’m trying to read, educate myself, learn from others and make notes of my own experiences as much as possible. Maybe you do the same. However, many investors don’t do any of these things. That could be because they have a better strategy than me, or, maybe because they have no investing strategy whatsoever. Some people treat the stock market like a casino, taking uncalculated risks with their money – rolling the proverbial dice; letting the chips fall where they may. I call them Casino Investors. There are a number of reasons for this, here’s a handful from my perspective:
Casino investors lack knowledge
Lack of knowledge is almost a sure fire way to help you fail in almost any field – investing is no exception.
Casino investors lack a plan
Whether this is a bigger flaw than lack of investing knowledge, I’m not sure, it’s a toss-up for me. Regardless, I’m a firm believer in failing to plan is planning to fail.
Casino investors are unrealistic
People with a get-rich mentality are largely unrealistic. Casino investors are fed any number of innovative means to get rich, and believe in them.
Casino investors are inherently impatient
In our casino world of wanting it now, wanting instant gratification, the stock market is probably not the place to be if you’re impatient.
Casino investors think they can time the market
Wisdom, I believe, begins by admitting your ignorance. I argue one of the many things no investor will ever know is when exactly stocks will go up or down. Over the long term, stocks generally rise at a nice pace of 7% or so. History tells us so. Anyone saying they can time the market is kidding themselves – no one investor will ever be bigger than the market.
Casino investors are too greedy
What do you think of my list?
Why do you think some investors treat the stock market like a casino?