4 ms·

> Invested a little saved and since then made a decent return, better than if that money was in a bank. So far, I'm doing better than the large-company mutual f

by Lewton 9y ago

> Invested a little saved and since then made a decent return, better than if that money was in a bank. So far, I'm doing better than the large-company mutual funds after 3 years, but as I've been reading, that's probably good luck. The only thing you should be comparing yourself against is the s&p500, if you haven't beaten that, then you're down. Also, the markets have been in an unprecedented bull run. Everything you've learned will be useless once the tide turns

almost_usual 9y ago
I believe the unprecedented bull run is also a contributor to Robinhood’s success. Most of your mobile app day traders are going to drop off when the market turns bearish.
- skellera 9y ago
  I think many young people don’t understand this. They just think it’s guaranteed returns at this point with the amazing market and btc, etc.
- adidar83 9y ago
  I agree. A lot of young people have not seen anything except the economic expansion we have experienced for the past 8 years.
sf_rob 9y ago
>Also, the markets have been in an unprecedented bull run. Everything you've learned will be useless once the tide turns This is the real problem. Easy to beat the markets in a bull run when you're invested in high beta/high risk stocks.
vervez 9y ago
Well, I don't think everything will be useless. Think it was John Maynard Keynes who said "The market can stay irrational longer than you can stay solvent." While that quote concerned shorting a bubble, I'd say the principle holds for determining when a bull market will turn, as well. While I'm 'beating' the S&P by 10% over my puny 3.2 year life, I gained more value from feeling the urge to trade during downturns, but resisting, seeing bad investments fade away (thanks, SolarCity), and effects of global events, such as Brexit and Trump USA. I would recommend trying stocks to people who can afford to do so as a way to really learn what books mean when they say there is an irrational 'fight or flight' instinct that individual investors have, not to mention the herd mentality of institutional investors. Hope that clarifies things.

by Lewton 9y ago

almost_usual 9y ago

I believe the unprecedented bull run is also a contributor to Robinhood’s success. Most of your mobile app day traders are going to drop off when the market turns bearish.

skellera 9y ago
I think many young people don’t understand this. They just think it’s guaranteed returns at this point with the amazing market and btc, etc.
adidar83 9y ago
I agree. A lot of young people have not seen anything except the economic expansion we have experienced for the past 8 years.

sf_rob 9y ago

>Also, the markets have been in an unprecedented bull run. Everything you've learned will be useless once the tide turns This is the real problem. Easy to beat the markets in a bull run when you're invested in high beta/high risk stocks.

vervez 9y ago

Well, I don't think everything will be useless. Think it was John Maynard Keynes who said "The market can stay irrational longer than you can stay solvent." While that quote concerned shorting a bubble, I'd say the principle holds for determining when a bull market will turn, as well. While I'm 'beating' the S&P by 10% over my puny 3.2 year life, I gained more value from feeling the urge to trade during downturns, but resisting, seeing bad investments fade away (thanks, SolarCity), and effects of global events, such as Brexit and Trump USA. I would recommend trying stocks to people who can afford to do so as a way to really learn what books mean when they say there is an irrational 'fight or flight' instinct that individual investors have, not to mention the herd mentality of institutional investors. Hope that clarifies things.