K5 wrote:
The whole stock market thing is a bog gamble and we are the customers, not the house.
This is why you don't have the stomach for investing in the stock market and really shouldn't comment on it.
Investing in the stock market is NOT gambling. Why not?
1) The odds are in your favor. You can not compare the stock market to a casino. The Dow today is higher than it ever has been, and over time, it ALWAYS goes up...ALWAYS. One more time for emphasis...ALWAYS.
2) The results of the stock market are NOT random. There are lots of reasons why a stock goes up or down, and none of it is just random chance.
3) There is not an "end of game". If you lose money gambling (slot machine or black jack for example), then that money is GONE. When you buy stocks, especially in mutual funds as you should do, if you have a big loss in value, you do not have to sell (cash in). As was stated in point #1, the stock market ALWAYS goes up over time, so you just wait, perhaps even use the down time to invest MORE, and watch it all balloon up later on. You can't do that in a casino or with traditional forms of gambling.
Investing in the stock market is for people who:
1) Are debt free but for a house or MAYBE a large student loan or MAYBE a zero interest car loan (too many of these 'acceptable' loans though is too much and you should work on getting rid of the debt as a bigger priority than investing).
2) Have an emergency fund of 3-6 months of expenses.
3) Invest money you make TODAY that you don't need today so that you can retire later on and have an income. Rule of thumb is to do 15% of your income minimum if possible. The way that you invest is that you do it religiously, making VERY FEW changes over time to your funds (usually just buying new ones to increase diversification), and then putting in even more money if you can if the market tanks.