Believe it or not, shares are unsecured notes that carry no cash value. That's right, you heard it correctly. You can't turn a share directly into money. So, how does one go about making money in the stock market? Well, it all comes down to a simple trade. You make money when you trade your share for more than what you paid for it.
The True Nature of Shares
But, here's the kicker. The price of shares is not determined by the performance of the company. Instead, it's based on the opinions of buyers and sellers on a myriad of factors. These are an extreme number of variables, none of which can be accurately quantified through a mathematical formula or statistics. And let's not forget about the fees involved in the stock market. Taxes, commissions, capital gains, they all add up.
The Zero-Sum Game
When you make money in the stock market, that money comes from the person to whom you traded the share. This brings us to a stark realization. This isn't investing. It's gambling. Investing implies a probability or possibility that everyone will make money. And that the money you make comes from the profit of a product or service. Gambling, on the other hand, is when it's impossible for everyone to make money and the money you make comes from the next buyer.
As long as the stock market is open, there is always someone holding a share with no money. Shares will be traded forever, or until the company goes broke. Trading shares is a zero-sum game until you add in expenses, at which point it becomes a minus-sum game. Common shareholders lose billions of dollars every day. The information you don't receive can often be the most important.
The Masters of Illusion
The stock market is promoted by the masters of illusions and deceptions, designed to separate the masses from their money without prosecution or accountability. Common shareholders are in a position to be taken advantage of by the system. Takers don't share the good deals, they market the bad ones. It's crucial to remember this the next time you consider gambling in the stock market.
Conclusion
In conclusion, the stock market is a complex gambling organization, where the rules of the game are often obscured and the stakes are always high. It's not for the faint of heart, but for those willing to play the game, the potential rewards are unpredictable. Just remember to play wisely and never gamble more than you can afford to lose. After all, the crazy man says, the stock market is a losing game for investors as a whole.
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