The Casino was created on 2004-06-14. Those who invest carefully over the course of many years are likely to end up as very happy campers…notice, we didn’t say gamblers. Here’s a simple conclusion If you’ve been avoiding the market because you believe it’s a casino, think twice. “It’s just a big gambling game,” some say. One of the more cynical reasons investors give for avoiding the stock market is to liken it to a casino. “The whole thing is rigged.” There may be just enough truth in those statements to convince a few people who haven’t taken the time to study it further.
Type your answer here… Individual investors have a huge advantage over mutual fund managers and institutional investors, in that they can invest in small and even MicroCap companies the big kahunas couldn’t touch without violating SEC or corporate rules. Any casino means ANY casino, including Indian casinos. Castaways – casino – ended in 1987. Of course, severe drops can happen in times of low interest rates as well.
Don’t let fear and uncertainty keep you from participating. Even poor market timers make money if they buy good companies. Look for red flags in the financial news, such as the beginning of the recent housing slump or the international credit crisis. Remember that the market goes up more than it goes down. If you loved this short article and you would certainly like to receive even more facts relating to ค่า สิ โน บา ค่า ร่า สล็อต หวย บอล kindly see our webpage. Here’s why they’re wrong: As a result, they invest in bonds (which can be much riskier than they presume, with far little chance for outsize rewards) or they stay in cash. The results for their bottom lines are often disastrous.
The reason is obvious: over time, good companies grow and make money; they can pass those profits on to their shareholders in the form of dividends and provide additional gains from higher stock prices. Over the long haul (and yes, it’s occasionally a very long haul), stocks are the only asset class that has consistently beaten inflation. Day traders and very short term market traders seldom succeed for long. 4) Be patient. Predicting the direction of the market or of an individual issue over the long term is considerably easier that predicting what it will do tomorrow, next week or next month.
If your company is under priced and growing its earnings, the market will take notice eventually. But when stock prices get too far ahead of earnings, there’s usually a drop in store. Compare historical P/E ratios with current ratios to get some idea of what’s excessive, but keep in mind that the market will support higher P/E ratios when interest rates are low. 1) Consider the P/E ratio of the market as a whole and of your stock in particular. Most of the time, you can ignore the market and just focus on buying good companies at reasonable prices.
At the very least, know how much you’re paying for the company’s earnings, how much debt it has, and what its cash flow picture is like. 3) Do your homework. Study the balance sheet and annual report of the company that’s caught your interest.