whyBish,Dec 13 2004, 11:40 PM Wrote:The term for this is "day traders". It is much riskier than investing in the long term, and I wouldn't recommend it without knowing what you are doing... (even if you do know what you are doing I still wouldn't recommend it, but that's only my personal preference.) I agree. I have a few relatives that were former millionaire's due to over speculative "day trading". They tried to convince me of how safe some of their 'margin' schemes were, and I'm so glad I listened to my gut and did my research. The 'it will never happen' scenario did happen, and the margin calls on the mutual funds that have never gone down came in. It's the Aesop's tortise that wins the race, slow and steady.
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But, Munk, not all (Stock) investments are a crap shoot. There are degree's of risk which are offset by good research into what you are buying. Any companies value, even one that has been around for decades, can be risky. You can equate it to buying into a portion of a business actually. Has it been cared for? Are the owners over extended with the bank? Are the owners insuring the managers are doing a good job? Is it in a flood plain, or are there other external risks? What are the earnings potential, and will it appreciate in value?