Investments you should not know

Some forms of trading out there may drive you mad, and your portfolio either sky high or to zero.

Short selling means you will buy a stock and “lend” it to some other fellow. You are sure the stock is overvalued and will drop soon, so you lend that stock to somebody else and wait to buy the stock back at a lower price.

Options are a gamble on whether a stock price will go up or down in a given time. They have names like “190621C00195000-AAPL-CALL”, which means you buy the right (call) to buy a share of apple (aapl) for $195.00 ($195.00 strike price) which will be available until Jun 21 2019. That has a “bid” and “ask” price on the purchase, as well has high fees.

It is more expensive than just buying the stock,  you won’t get dividends, and the option is worthless if the price doesn’t go up.

There are other tricks you can pull: buying companies out of bankruptcy, flash trading, cryptocurrency speculation, and leveraged trading. Those may be covered later.

Investing in the stock market itself is a positive sum game, so long as companies are returning profits. Investing in government bonds are positive sum as well, as long as the government is making tax revenues and the bonds are put into some project good to increase those revenues.

Short selling, options, and other tricks are negative sum games. You are guaranteed to lose money on average, because you have to pay fees and then hope somebody wants to buy the option or short sale.

In order to make money considering the fees, you’d have to have a huge amount of money and risk it all, at least $100,000. That’s most people’s entire retirement, or a good chunk of it.

Worst of all, it is gambling, that money is not helping a company grow or a community prosper. A stock or a bond… gives money to a company that requested it to grow with. A trade like this, just puts money into a betting pool until it is over. That’s why it is a negative sum game. Please consider this when investing.

My purpose in investing is to make you money. The best way to do so in the long run, in a repeatable and tested way, is to do so by also helping others.

Want a scientifically proven algorithm that finds the best investments?

9 thoughts on “Investments you should not know

russell westbrook shoes1 week ago,

Thanks a lot for giving everyone an exceptionally memorable possiblity to discover important secrets from this blog. It can be so superb and also stuffed with a lot of fun for me and my office friends to search your website more than 3 times in one week to find out the fresh issues you have. And of course, I am at all times astounded with the surprising guidelines you give. Selected 4 tips in this article are completely the finest I have had.

Reply

yeezy boost1 week ago,

My wife and i felt absolutely satisfied when Peter managed to round up his studies from your precious recommendations he acquired out of your web site. It is now and again perplexing just to be giving freely key points which usually others have been making money from. We really recognize we have the blog owner to give thanks to for that. These explanations you have made, the straightforward blog navigation, the relationships your site help engender – it is all wonderful, and it’s leading our son and the family reckon that that subject matter is brilliant, which is certainly exceedingly mandatory. Many thanks for all the pieces!

Reply

michael kors outlet online1 week ago,

I together with my buddies appeared to be reviewing the great strategies found on your website while the sudden developed an awful feeling I had not expressed respect to the website owner for them. The women came as a result very interested to study them and now have truly been taking advantage of these things. Appreciate your being indeed kind as well as for deciding on this kind of ideal themes millions of individuals are really wanting to understand about. My personal honest apologies for not saying thanks to you sooner.

Reply

birkin bag6 days ago,

I precisely desired to say thanks yet again. I do not know the things I might have handled without the smart ideas provided by you concerning this field. This has been a intimidating matter for me, but taking note of this professional technique you solved the issue took me to jump over gladness. I am thankful for your information and thus trust you find out what a great job that you’re accomplishing educating most people using your web site. I am certain you’ve never met any of us.

Reply

yeezy 5005 days ago,

I not to mention my friends have already been checking out the best tips and tricks located on the blog then unexpectedly I got a horrible feeling I had not thanked the web blog owner for them. All the women were totally passionate to read all of them and have in effect quite simply been making the most of these things. Many thanks for being quite accommodating as well as for picking out these kinds of cool guides most people are really desirous to understand about. My personal honest regret for not saying thanks to you sooner.

Reply

adidas gazelle4 days ago,

Needed to write you one very small remark in order to say thank you again with your extraordinary concepts you’ve shared on this website. This is certainly wonderfully generous of people like you to deliver publicly just what many people could have offered for sale for an electronic book to end up making some dough on their own, most importantly considering that you could possibly have tried it if you ever decided. Those basics as well acted like the great way to realize that many people have similar passion similar to my personal own to know significantly more on the topic of this problem. I’m sure there are millions of more fun sessions ahead for people who read through your blog post.

Reply

nike huarache2 days ago,

I want to show appreciation to this writer just for rescuing me from such a incident. After surfing throughout the search engines and getting ideas which are not helpful, I believed my life was well over. Living without the presence of approaches to the problems you’ve solved by way of this review is a serious case, as well as those which could have badly damaged my career if I hadn’t come across your web page. Your main expertise and kindness in dealing with almost everything was invaluable. I am not sure what I would’ve done if I hadn’t come upon such a thing like this. I can at this moment look forward to my future. Thank you very much for this professional and amazing help. I won’t hesitate to recommend your web page to any individual who desires counselling on this matter.

Reply

yeezy boost2 days ago,

I wanted to put you the tiny word in order to give many thanks over again for your precious secrets you’ve featured at this time. It is really tremendously generous of people like you to offer without restraint all a lot of people would’ve sold for an e book to help with making some money for their own end, certainly seeing that you might well have tried it in case you decided. Those good tips also served to provide a easy way to comprehend other people online have the identical keenness just like my very own to figure out very much more with regard to this issue. I think there are lots of more fun times ahead for individuals that browse through your website.

Reply

jordan 41 day ago,

Thanks a lot for giving everyone an extremely remarkable possiblity to discover important secrets from this web site. It’s always so useful plus stuffed with fun for me personally and my office co-workers to visit the blog more than three times per week to read through the new items you will have. And definitely, I’m just actually fascinated for the perfect concepts you serve. Some 4 points in this article are undoubtedly the finest I’ve had.

Reply

Leave a Reply

Your email address will not be published.