"As most people are gamblers and not investors,..."
certainly true.
The biggest problem people have aside from inwardly knowing they are losers and punting to confirm it - is
people think making money in the market is only possible by buying and selling - ie. capital gain.
It seems most are completely unaware of a thing called dividends - and heaven forbid don't even mention reinvestment or similar. And, beyond that, the power of compounding leaves them completely clueless.
I disagree that there are only about 10 stocks worthy of value investing -- but, the number is reasonably close I guess.
The thing is they change - new ones come and old ones go.
the trick is to have an up to date shopping list ready at all times -------------
and have access to funds or be able to liquidate something - rapidly - and I mean rapidly - hours, not days or weeks.
I think the chances of making money by gambling on the market is miniscule. Sure, you can make pin money - maybe even 6 figures occasionally - but, real money - millions and 10's of millions -- that sort of return is firmly in the fields of investment.
People with little money almost always say they will be investors when they get rich.
Well, if it is good enough to be an investor once one IS rich - why not start that way?
The chances of being a successful investor rise greatly.
To get the right information AND filter it properly AND manage funds wisely - and that doesn't mean conservatively - it means wisely - the 'just right' blend of conservative AND risk - is a big ask, but, can be done.
btw, my comment about people punting because inwardly they are losers - wasn't in jest --------- look at the evidence =
you will see time and time and time again - people punt on a stock whilst it is a spec - a real spec - but then - when the building blocks are in place so success is right there - even though the sp has not caught up with the new conditions - punters drop out -- and look for another real speccie -------
that small gap, often months - is an absolutely golden opportunity for the well researched -
and, if you think there are only 10 or so value stocks on the asx ------------
boy, the numbers of those just past speccies and before market realisation that something is real stocks ------ the numbers come up in one small hand.
to find the bird ----------- 'that' is the challenge.
The bigger challenge is to catch it - hold it in your hand with confidence - not be shaken, not be stirred, not listen to the bullcrap and to ride the downs -- and, worse still - the up's.
The up's are the hardest of all - when you get it 100% right - and your stock heads for outer space - then comes the temptation -------------- to take a profit and not let it run.
The game is never easy.
If you think cutting a loss is hard -------- try staying in the saddle when you are 1000% up.
