Which is why so many day traders end up going bankrupt.
Well yeah, so do most of the gamblers, but some miraculously don’t, but we don’t believe that playing rulelts is a skill now. Incidentally, moat of the people who consistently gamble but don’t go bankrupt are people who have more money than it’s possible to lose in one sitting.
Playing stonks follows exactly the same logic.
Comment on Just think about it
Joncash2@lemmy.ml 2 days agoYou understand that is a skill in and of itself. Which is why so many day traders end up going bankrupt. To be able to actually consistently make money off of money isn’t magical, it doesn’t happen automatically. If it did everyone would be far wealthier.
Nalivai@discuss.tchncs.de 1 day ago
Joncash2@lemmy.ml 1 day ago
Actually you make a great point. Which is why there’s professional poker, where gamblers can literally make a living. Understanding the difference between being a professional and being able to consistently make money and where to go to do it, is part of the skill I’m talking about. Thanks!
Nalivai@discuss.tchncs.de 1 day ago
Not understanding the difference between the game of skill and the game of chance is exactly the grasp on reality that I expected from you based on this thread.
Joncash2@lemmy.ml 1 day ago
No, you not understanding that games of skill or chance are both gambling. Being able to identify the difference makes you a gambler who can live off his gambling or one who will go broke. Same trick in investing.
UnderpantsWeevil@lemmy.world 1 day ago
Which is why so many day traders end up going bankrupt.
Bankruptcy is a tool for discharging debt, not a metric for business failure.
Dasus@lemmy.world 1 day ago
Ever heard of interest? Savings accounts?
Say you just have 100 million sitting in a bank account. The average national savings account interest rate (and you’d get a much better one with 100 million) is 0.42 APY.
So you’d get $420,000 in interest every year.
No, the rich would be richer. It’s expensive to make money, but very simple if you have a lot of it. Those without the capacity will keep getting poorer. You can shift the margins by taking more risks, obviously, but you can just make moneys for free when you already have enough for everything you need.
And hmm how is the trend going?
oxfam.org/…/ten-richest-men-double-their-fortunes…
Oh, right.
UnderpantsWeevil@lemmy.world 1 day ago
Treasury Notes are 10x that rate. This mostly just illustrates how scammy and cheap your average bank has grown.
Dasus@lemmy.world 1 day ago
Yeah, my point here being that even with the puniest of interest rates, you’d still make more than enough just off the interest to live somewhat comfortably. And in reality, you’d make millions and you’d have so much you could risk a little of it while still having those safe investments yielding all the time.
UnderpantsWeevil@lemmy.world 23 hours ago
I’d go one step further and assert that wealth compounds and borrowing rates fall with your aggregate wealth. Treasuries are the safest of safe bets, but there are much higher returns to be had with some minimal risk that become accessible when you have large cash reserves and access to cheap credit. Home ownership is a classic example. Save thousands of dollars a year on rent by owning an appreciating asset you get to live in.
You don’t need $100M to make this work. $100k can turn a handsome profit through compound returns on investment. In a stock market that yields 7%/year, you double your money in a decade.
Joncash2@lemmy.ml 1 day ago
Sure they increased their money during the pandemic. People were acting like idiots buying homes and good when they really really shouldn’t have. It’s also true the rich prey on this. Go try to get 100 million in an interest bank account and see what happens, it’s actually harder to leave that kind of money in interest accounts because of how FINRA regulations work. Your money would literally not be insured. You wouldn’t know these things because you just hear other poor people talk about it.
Thus, the real crux of the problem. The poor don’t even understand well enough what’s happening to make a good argument. Between the wanna be rich poor people who talk about unskilled labor as if you just need to pull yourself up by your bootstraps and the poor who hate the rich, no one actually understands how it all works. And it all WORKS BECAUSE you don’t understand. If the poor didn’t respond the way they did during the pandemic, the rich wouldn’t have been able to hoover up all their money. Who’s taking the 22% loans, who’s buying houses they can’t afford on 30+ year mortgages at 8%. All of those actions make the rich richer. You want to stop the rich? Stop wasting your money. But even if you can, the rest won’t and the money will keep funneling up. Thus the real problem. But no one wants to change their life style. Instead they’ll go out and buy expensive handbags and other luxury items on lay away. You can’t stop the rich as long as everyone participates in capitalism.
Dasus@lemmy.world 1 day ago
A lot of words for saying “you’re right that one can very safely invest that kind of money and thus I was wrong in saying money doesn’t just generate money, when it very literally does”.
“I pointed a gun at a guy and asked to fuck him in the arse and he just seemed to agree without question. That doesn’t make me a rapist, it makes him a slut.”
Honestly I couldn’t come up with more hilarious victim blaming if I tried. 5/5 for trolling as a deeply brainwashed libertarian fucknut.
Joncash2@lemmy.ml 1 day ago
The problem is there is no safe way to invest that kind of money. If there was a purely safe way to invest everyone would be a millionaire. The savings account thing you mentioned is literally only for poor people, to give them a leg up and a small increasing investment for the purpose of teaching people the value of investment. You’ve created a statement and keep smacking it.
Dasus@lemmy.world 1 day ago
Joncash2@lemmy.ml 1 day ago
I genuinely do not understand what your talking about. Elaborate?