Comments on: Playing the stock market

By: Megan

Megan — Sat, 19 Jul 2008 11:19:18 +0000

Avatar, I’m not sure how to take your comment. If you are speaking to me personally and not the general “you” then I have to tell you that I am reasonably financially literate. My mutual funds and index were purchased after quite a bit of research, and while none of them are “thriving” with the market as it is, they are holding their own.

The shares I bought through Sharebuilder? I did it for fun. For me, it was akin to buying a lotto ticket. I picked a company that I liked because I like their product and I like what they’re trying to do. And because I think that ultimately, they will grow. But even if they don’t – it was a purchase for fun. If I lose every cent that I put into that share, I don’t mind. Sure, I’d love to get rich, but really, a $21 investment wasn’t going to get me far anyway.

It is only in those instances that I think playing the stock market is fine – if you are willing to lose every penny you put in. If you’re in it for the ride, then by all means, enjoy it.

By: Avatar

Avatar — Sat, 19 Jul 2008 08:12:49 +0000

I agree with Greener Pastures. You need to be reasonably financially literate and do some independent research before buying these shares.

I would recommend reading the Intelligent Investor by Benjamin Graham, if you have the time.

By: CB

CB — Fri, 18 Jul 2008 19:29:51 +0000

I’m in the stock market, but I’m in a bunch of retail/restaurant names which are not so hot right now (in addition to some commodities and emerging markets which are doing OK). I had to comment b/c I read a lot of your stuff and I find myself feeling exactly the same way! I’m just getting started on my own PF ramblings, pls check it out at gimmefivebucks.blogspot.com, and if you don’t mind I’m going to add a link to your page!

By: Greener Pastures

Greener Pastures — Fri, 18 Jul 2008 18:30:58 +0000

I feel like when they say “playing the stock market” it equates it to Las Vegas gambling. Which I think for many of us it can be, if we don’t do as you say, thoroughly investigate the stocks we purchase first. I’ve been guilty of buying a few shares over the years because “I liked the name” or ” I have a good feeling about this one.”
Boy was I wrong. I lost enough to not do that any more! Now I research or don’t buy.