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0 pointspasabagi4y ago0 comments

It is also the case that professional traders make a lot of money out of retail investors. The percentage of retail investors that actually make money are, iirc, quite small. It doesn't make sense to do something when you don't have the time to get good at it, and being bad at it means you're going to lose money.

Sometimes you're forced to (when an investment is tied into a basic necessity, like a house), but you're always going to be at a disadvantage.

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pjc504y ago

Retail _traders_ tend to lose money, retail _investors_ who buy and hold tend to do OK in the long run.

> investment is tied into a basic necessity, like a house

? What does this refer to?

pasabagiOP4y ago

I mean the rights of tenants are such that if you want to live in decent conditions / a stable domicile, you have to buy a house, thus becoming a property investor.

sokoloff4y ago

I think the act of buying a house to live in should be considered more an act of consumption than of investment.

It’s not 100% consumption, but it’s almost surely we’ll over 50% consumption and yet people get confused by the fact that a slice of it is forced savings and a sliver of it is an investment and they focus on these latter two more than is appropriate and in so doing are prone to less rational decisions than if they thought of it as mostly consumption IMO.

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