Stock-exchange: skill or gamble?

[Nik]

Allegedly it's so simple - if you are sure that this share or currency or commodity will appreciate or depreciate, just make the right bet and come collect the money. It happens, however most people seem to lose money. Forex is even simpler. Still most people probably lose money (that's what I heard from Forex brokerages) -:) Speculative/solid venues, hedging, etc all are available, but still no risk, no - gain. High risk - you usually lose money -:) Professionals too - not always in the greens..

So, what is it: skill or gamble?

[Jen Pattison]

Skill or gamble? I would say that's it's a combination of both. I have never invested in the past as I thought it was 'complicated', but now that I've read into it I will be investing once I'm back in Britain. Rich people invest, because they understand that statistically it is the most reliable return of interest over inflation in the long term. Even if shares perform badly in a crash, they tend to recover.

For newbies like me, I'm told that the best way to invest is in a diverse portfolio fund. There are plenty of ethical funds too that perform well; I don't want to fund arms dealers, tobacco or gambling.

[Kevin]

Short-term investing is largely an educated gamble, while long-term investing rewards skill and discipline.

[Nik]

So, skill or gamble, what do you think?

[Ian]

If you watch Warren Buffet, it is a skill. You don't make 80 billion from very little without skill. Buffet seldom loses anything because he does the very best he can to avoid gambles.

[Nik]

Putin exerts almost as much influence on the stock exchanges as Musk over Bitcoin :) Ukraine bought back cheaply some of its bonds, payable in autumn. I imagine other players may have taken advantage of sharp decreases. And generally speaking - threat of invasion/war can be an instrument to influence stocks' value. I used such scenario for a fictional book, and now am watching it happen.
What do you think?

[Jim]

Life experiences soon teach all of us that there there are very few 'sure things' in life. That said; my advice is that, if one wishes to invest in stocks, bonds, or currency, and does not wish to invest the time, effort, and money required to aquire significant knowledge and expertise, obtain the services of a well-established financial institution with a proven, well-documented track record of success. If one possesses the determination and self-discipline to agree to and then stick with the established plan, all will turn out well in the vast majority of cases..

In 1976 my late wife convinced me to obtain the long-term services of a financial planner/advisor; the goal being to allow me to retire at a fairly young age and then enjoy a long, enjoyable retirement with sufficient financial resources to live a comfortable lifestyle throughout.

Thanks to the valuable initial and long-term financial planning and advice from the planner/advisor I was able to retire in 2001 at 54 years of age and have been enjoying it ever since. So far, I have been able to pay off a 30-year mortgage in just 17 years, visit 39 of the United States on extended road trips, and occasionally help out my 4 adult children and 4 grandchildren whenever the need arose.

[Ian]

I think that Warren Buffett has shown that if you do your homework and follow certain principles you can make a lot of money in a financially stable environment. By stable, I mean no general wipeouts such as losing a war and no political disasters such as a dictator taking it all for himself.

One of our previous prime ministers, David Lange, made the perceptive remark that so many investors behave like reef fish, thus charging off to follow the "leader", which is what one did when it changed direction for no apparent reason. Accordingly, if you are quick and can see the darting changes you could really make money.