Stock Market Looks Like A Casino Now : Have Fun !!

 

GameStop the Market: Big Bets on Stock Make Wall Street Look Like a ‘Casino’ <source:casino.org>

 

 

The biggest bets made over the past couple days haven’t been placed in a casino on the Las Vegas Strip. Instead, the action’s taken place on Wall Street, as a group of stock traders on Reddit have aimed at hedge fund traders, who have made high-stakes wagers that businesses like GameStop and AMC Entertainment would stumble.


The Stock Market is a Fun Casino <source:ritholtz.com>

 

The stock market works as if people were investing money in companies; some indirect mechanism ties the secondary trading of stock to the allocation of capital. 1  And of course in the limit companies can raise money by selling stock. So buying stock is like investing money in a company in exchange for partial ownership of its projects, and the amount you should pay for a stock is basically the discounted present value of the company’s cash flows from its business. The mechanisms of the market tie the price of the stock to the underlying value of the company.

But there is another theory. This theory is that the stock market is a fun casino, and you should buy stocks because they will go up and down in exciting fashion and might make you rich quick. This is a very old theory, and I suspect that for much of the history of financial markets it was considerably more popular and better supported than the discounted-present-value-of-cash-flows thing.

 

It is so easy to make money from the stock market nowadays, we have seen many comments with screenshot on how easy and quickly one can make a fortune from stock market from social media around the world. Easy money , easy platform to trade (Fintech) together with the power of social media platform(wallstreetbets-Reddit) , it can really create a “perfect storm” to speculate and create a “bubble”. Just throw away all your text books of stock analysis ( fundamental or technical ), as the only consideration now is the “ PRICE , no need to have any other types of analysis.


Yes , occasionally I did buy and try my luck in TOTO but that was when they have special draw with bigger price in the pool, where I think is fairer with higher price even though I know that the odds remain the same.

 So, are you ready for next 5 Million Draw !!

 Huat-Ah !!  :D 





One of the main reasons that gambling is so appealing to humans is that we really love taking risks. Risk-taking makes us feel naturally excited and this induces an adrenaline rush or a natural high. ... Even if you lose, the anticipation of placing a bet or rolling the dice is enough to keep us coming back to the table …..   Why Human Like To Gamble <source:pieuvre.ca>

 


So yeh ! Is quite natural that we as human beings just like to gamble / betting …but always remember that :

 

小赌怡情  大赌伤身 !还会伤到身边最爱的家 !!




Wishing All :

 

恭喜发财源滾大吉大

心想事万事如四季平安过旺年 

 

May this new year bring all of us affluence in health and wealth. Happy 2021 Lunar New Year!

Hope the year of Ox bring us the strength to face and win the war against COVID-19 pandemic.


<Image credit : Freepik.com>




Cheers !!


STE






Comments

  1. Losing small money hoping for jackpot is fun. US mkt better than ToTo. Some winning 20 to USD30M

    ReplyDelete
    Replies
    1. Hi Uncle CW8888, Yes, US stock exchanges like NASDAQ / NYSE is operating the biggest TOTO in the world now... :D , one can win USD20-30 MIL easily ... hahaha.
      Think if easy money continue to flow into the market... we will continue to see many overnight millionaires... Bravo !! :D

      Delete

Post a Comment

Related Posts Plugin for WordPress, Blogger...

Labels

Show more

This Month's Top Blog Posts

2nd Qtr 2021 : Portfolio & Dividend Update

Crisis = Danger + Opportunity? (危机 = 危险+ 机会)

Dow Jones 125 Years : Investing For The Long Term

US vs China : Divergence of Monetary and Fiscal Policies

Investing in 2.96% p.a AAA Bond