The Market Is Not a Casino

• Report this Comment On May 06, 2009, at 5:32 PM, 102971 wrote:

  I wish I were wrong but the fact is that the stock market IS a casino. Day Traders have made it that way as well as short sellers. Short selling should be totally banned. If you don't own the stock, you can't sell it.

• Report this Comment On May 06, 2009, at 5:37 PM, phalkor wrote:

  Thank you for explaining this important point. This is the way things are supposed to work. But given my personal behavior and the insane volatility I've witnessed, the stock market is very much a CASINO. Sometimes I even tip the bartender if she's cute.

• Report this Comment On May 06, 2009, at 5:42 PM, automaticaev wrote:

  gambling dosnt win 90% of the time.

• Report this Comment On May 06, 2009, at 5:44 PM, automaticaev wrote:

  well most people get some long and shorts. If you know when something will be worth more later that day why wouldnt you just buy and sell it if you didnt really want it? Even if you only made 20$ no reason not to do it...

• Report this Comment On May 06, 2009, at 5:49 PM, automaticaev wrote:

  what would happen if you never sold at dow 13000 and just let it fall to 9000 its cheaper to have sold and then buy it again and get more shares.

• Report this Comment On May 06, 2009, at 6:02 PM, westco31 wrote:

  I would agree with most of your article - people need to be informed when investing in a company. However, the stock market is exactly like a casino when the government steps in and acts like the house. When the government takes multiple shares of a company, ownership has just been highly diluted. In today's economic environment, how does a person know when investing in stocks that the government will not come in and change the rules of the game after you have already been playing - it is almost worse than a casino in that aspect.

• Report this Comment On May 06, 2009, at 6:08 PM, FastTradinOutlaw wrote:

  Ill sell when i like thank u.

• Report this Comment On May 06, 2009, at 6:09 PM, FastTradinOutlaw wrote:

  who will stop me?

• Report this Comment On May 06, 2009, at 11:38 PM, jesse2159 wrote:

  It may not be a casino, but banks, brokers and insurance companies treated it like it was a dice table at Monte Carlo. Never have I had so little respect for any industry as I do now for these financial companies. I'd stack them up with La Costa Nostra any day.

• Report this Comment On May 07, 2009, at 11:32 AM, gtymascpa wrote:

  I will have to agree with others that the stock market IS in fact a casino operation. The idea of privatizing social security, or taking responsibility for our own financial future, is virtually impossible, given all the (legal) manipulating of investments that can be done by the suits of Wall St.

  You can not seriously advise someone to invest in anything that is "rock solid", as look at these referenced investments over that past year! What if someone was in need of money (requiring a sell) during this time.

  Investing should be distilled down to: Buy if you like it; or Don't Buy if you do not like. Puts, calls, derivatives, all "funny money" that creates nothing tangible!! Dividends are the only reliable thing that can not be manipulated, as you either have cash to pay out or you do not. I speak as an accountant.

  They may agrue that liquidity is added to the economy, but, at what a price we have paid in the past year.

• Report this Comment On May 07, 2009, at 11:50 AM, mistermiranga wrote:

  I get your point but your headline is only partially true and can be misleading.

  Institutions that buy, sell and make markets are the biggest casino operators going. They can change the value of your investment on any given day without any regard for fundamentals.

  In the end these investment banks are allowed to take huge risks and speculate with little recourse but the retail investor is constantly "lectured" to play by the rules.

  Speculating is dangerous but even a Foolish Strategy can have significant risks depending on the individual.

  Perhaps it is more helpful to admit up front that the market is a casino but you can tip the odds in your favor if you do your homework.

• Report this Comment On May 07, 2009, at 12:15 PM, gtymascpa wrote:

  The odds can be tipped only slightly. To "do your homework" would relate to the "fundamentals analysis" I suppose, which is what I do.

  However, in my activities, I realize that there are many non-fundamental influences on market activities, that are subjective, or psychological, or downright manipulations through puts, calls, etc.

  I, as an investor, am forced to try to outguess the suits as to how they will act/react to events, etc, to account for the "nonfundamental" stuff.

  I would put forth that gambling is probably more predictable. By relying on probability and statistics, a card counter can be fairly accurate

• Report this Comment On May 07, 2009, at 12:21 PM, omegamel wrote:

  I've invested in MGM and LVS

• Report this Comment On May 07, 2009, at 5:46 PM, bernbern0 wrote:

  Thank you for your article Selena. Well said. I agree with you, but I also agree with the thoughtful comments of gtmascpa. I wish there were more "investors" like the two of you. We'd all be in better shape!

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