Comments on: Playing the Stock Market http://blog.canadian-dream-free-at-45.com/2010/05/18/playing-the-stock-market/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Wanda Eckman http://blog.canadian-dream-free-at-45.com/2010/05/18/playing-the-stock-market/comment-page-1/#comment-53437 Wanda Eckman Tue, 18 Jan 2011 23:11:10 +0000 http://blog.canadian-dream-free-at-45.com/?p=1644#comment-53437 I'm not sure that I would advocate betting as a diversification strategy, although I certainly won't discount it as a means of entertainment. The issue is that for any betting system - unless you're doing it with friends - there are friction costs inherent to the system. Much like the house's take of any bet reduces the pot for all involved. Thus the systemic function of the game is tilted away from you. Not to mention that it's a zero-sum game - someone wins and someone else loses. I would look for systems which are in your favor - for example, the <a href="http://andrewjohns.ca/why_invest_in_canada" rel="nofollow">Canadian stock market</a> has grown by 5-6% per year, on average, over the long term. Therefore if you just met the average of the market, you win. Likewise, the American stock market has been growing at 7-8% per year, on average. If everyone just gets average returns, they will still come out ahead. I’m not sure that I would advocate betting as a diversification strategy, although I certainly won’t discount it as a means of entertainment. The issue is that for any betting system – unless you’re doing it with friends – there are friction costs inherent to the system. Much like the house’s take of any bet reduces the pot for all involved. Thus the systemic function of the game is tilted away from you. Not to mention that it’s a zero-sum game – someone wins and someone else loses. I would look for systems which are in your favor – for example, the Canadian stock market has grown by 5-6% per year, on average, over the long term. Therefore if you just met the average of the market, you win. Likewise, the American stock market has been growing at 7-8% per year, on average. If everyone just gets average returns, they will still come out ahead.

]]> By: Gene http://blog.canadian-dream-free-at-45.com/2010/05/18/playing-the-stock-market/comment-page-1/#comment-49735 Gene Mon, 29 Nov 2010 07:27:20 +0000 http://blog.canadian-dream-free-at-45.com/?p=1644#comment-49735 Sports betting as a financial strategy = stupid Running a sports betting outfit (as a bookie) = better "I’m not sure what level of returns are possible through gambling, but how much more risky is betting on sports is compared to “investing” in the stock market." You don't know anything about investing. Sports betting as a financial strategy = stupid

Running a sports betting outfit (as a bookie) = better

“I’m not sure what level of returns are possible through gambling, but how much more risky is betting on sports is compared to “investing” in the stock market.”

You don’t know anything about investing.

]]> By: The Best Financial Websites for Canadians | BankNerd.ca http://blog.canadian-dream-free-at-45.com/2010/05/18/playing-the-stock-market/comment-page-1/#comment-44449 The Best Financial Websites for Canadians | BankNerd.ca Mon, 21 Jun 2010 22:28:53 +0000 http://blog.canadian-dream-free-at-45.com/?p=1644#comment-44449 [...] enjoyed reading the article “Playing the Stock Market”, it game great insight of the author’s experience in playing the stock market and relating the [...] [...] enjoyed reading the article “Playing the Stock Market”, it game great insight of the author’s experience in playing the stock market and relating the [...]

]]> By: » Weekly round-up Canadian Business Blogs | Advice on Investment in Canada, Stock Market, Small Businesses Opportunities http://blog.canadian-dream-free-at-45.com/2010/05/18/playing-the-stock-market/comment-page-1/#comment-43607 » Weekly round-up Canadian Business Blogs | Advice on Investment in Canada, Stock Market, Small Businesses Opportunities Sat, 22 May 2010 06:21:53 +0000 http://blog.canadian-dream-free-at-45.com/?p=1644#comment-43607 [...] Canadian Dream: Free at 45 considers diversifying his investment portfolio by adding wagering on sports, something he enjoys following, knows well and finds more transparent than public companies [...] [...] Canadian Dream: Free at 45 considers diversifying his investment portfolio by adding wagering on sports, something he enjoys following, knows well and finds more transparent than public companies [...]

]]> By: Goal Hunter http://blog.canadian-dream-free-at-45.com/2010/05/18/playing-the-stock-market/comment-page-1/#comment-43550 Goal Hunter Thu, 20 May 2010 13:23:54 +0000 http://blog.canadian-dream-free-at-45.com/?p=1644#comment-43550 Financial Uproar is right. Even 1% higher is a license to print money. Just hire an employee to run the analysis if it takes a long time and pump in as much money as possible. 60% is huge. Financial Uproar is right. Even 1% higher is a license to print money. Just hire an employee to run the analysis if it takes a long time and pump in as much money as possible. 60% is huge.

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2010/05/18/playing-the-stock-market/comment-page-1/#comment-43548 Canadian Dream Thu, 20 May 2010 12:15:36 +0000 http://blog.canadian-dream-free-at-45.com/?p=1644#comment-43548 @ Steve, In case your not familiar with Google's Adsense program. I don't control any of the ads shown on the site. As such you have just as much chance of seeing a cooking ad as a penny stock ad. Tim @ Steve,

In case your not familiar with Google’s Adsense program. I don’t control any of the ads shown on the site. As such you have just as much chance of seeing a cooking ad as a penny stock ad.

Tim

]]> By: Simple in France http://blog.canadian-dream-free-at-45.com/2010/05/18/playing-the-stock-market/comment-page-1/#comment-43487 Simple in France Wed, 19 May 2010 06:49:53 +0000 http://blog.canadian-dream-free-at-45.com/?p=1644#comment-43487 I'm not much of a gambling woman myself, but I like that you've compared sports betting to the stock market . . .depending on how you invest, all you're really doing is gambling and hoping for a certain rate of return. I’m not much of a gambling woman myself, but I like that you’ve compared sports betting to the stock market . . .depending on how you invest, all you’re really doing is gambling and hoping for a certain rate of return.

]]> By: Financial Uproar http://blog.canadian-dream-free-at-45.com/2010/05/18/playing-the-stock-market/comment-page-1/#comment-43483 Financial Uproar Wed, 19 May 2010 02:25:09 +0000 http://blog.canadian-dream-free-at-45.com/?p=1644#comment-43483 Dave, you are on a roll this week. Another great post. I've read that the guys who bet on sports for a living have a success rate of 51-55%, so I think your 60% goal is perhaps a little too high. I agree with the other commenters that you need to spend more time figuring out your ROI and time spent. I know when I bet on sports I spend about a minute and a half picking out games. You look at the lines and a couple games jump out at you and you bet on them. Oh, and injuries aren't always disclosed, especially in the NHL. After so many playoff series you find out whoever was playing hurt. All that said, it's a really interesting concept. I'd say that you try it for a little while and see just how much money you make. And maybe do a follow-up post to tell us curious people how it's going. Dave, you are on a roll this week. Another great post.

I’ve read that the guys who bet on sports for a living have a success rate of 51-55%, so I think your 60% goal is perhaps a little too high.

I agree with the other commenters that you need to spend more time figuring out your ROI and time spent. I know when I bet on sports I spend about a minute and a half picking out games. You look at the lines and a couple games jump out at you and you bet on them.

Oh, and injuries aren’t always disclosed, especially in the NHL. After so many playoff series you find out whoever was playing hurt.

All that said, it’s a really interesting concept. I’d say that you try it for a little while and see just how much money you make. And maybe do a follow-up post to tell us curious people how it’s going.

]]> By: Steve http://blog.canadian-dream-free-at-45.com/2010/05/18/playing-the-stock-market/comment-page-1/#comment-43472 Steve Tue, 18 May 2010 19:36:30 +0000 http://blog.canadian-dream-free-at-45.com/?p=1644#comment-43472 How do you expect anyone to take you seriously when your website is covered in all of these get rich quick advertisements. You talk about "investing", but all I see are a bunch of ads telling me to buy penny stocks. What a joke. How do you expect anyone to take you seriously when your website is covered in all of these get rich quick advertisements.

You talk about “investing”, but all I see are a bunch of ads telling me to buy penny stocks. What a joke.

]]> By: Mike http://blog.canadian-dream-free-at-45.com/2010/05/18/playing-the-stock-market/comment-page-1/#comment-43466 Mike Tue, 18 May 2010 15:29:42 +0000 http://blog.canadian-dream-free-at-45.com/?p=1644#comment-43466 Very interesting. I would suggest that retirement investments are passive (stocks, bonds, mutual funds, GICs etc) and a small business is not passive. Given the amount of work you would need to do, I would call this a small business. I think it's perfectly legit to create income which could be used for retirement investing although you should start keeping better track of your ROI and time spent. Very interesting.

I would suggest that retirement investments are passive (stocks, bonds, mutual funds, GICs etc) and a small business is not passive.

Given the amount of work you would need to do, I would call this a small business. I think it’s perfectly legit to create income which could be used for retirement investing although you should start keeping better track of your ROI and time spent.

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