アマチュア投資家 commented on a stock · Oct 26, 2024 16:48

Is the name 'individual investor' misleading?

$Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF.US)$ Why are interest rates behaving as they are now, individual investors are far behind in terms of information, and it is necessary to first understand the common fact that trying to catch up too late will only make the wounds bigger. You may happen to win a few times, but consistently winning is almost impossible. The risk is further increased with high-cost leverage ETFs. Since it is a defective product as a commodity, it is only meant to be played with in the short term.

Individual investors cannot compete at all with market professionals in terms of analysis, so they are not reliable. Even those professionals are losing to the market average, so you must first realize that. The market has long incorporated expectations for the future, and regardless of what you personally think, it is just a misconception. In that sense, the information written here has no real value at all and should be enjoyed as a hobby or a pastime. It should never be the basis for wagering a large amount of money...

In order for individuals to have time on their side, the key principle is to minimize costs to the maximum and keep up with the market. If you cannot do that, you will significantly lag behind the market average. Therefore, based on past data and with the premise that 100% certainty is impossible, you must roughly consider how much return can be expected within the risks. (Of course, it goes without saying that you should not make mistakes based on important money.)

Even if it goes well once by chance, if you are confident that you can continue to win against a much superior opponent with vast information, surpassing the return each time while paying significant costs, then there is no reason to stop.

Instead of being celebrated as a temporary trend, it is advisable to carefully consider the risks after reading through universal masterpieces such as "The Loser's Game" at least once (your perspective on asset formation will change drastically). The risks you can take and the appropriate investment methods may vary depending on each situation, but it is important to think with your own mind, not swayed by others' opinions, and organize the information correctly.

*This is a conclusion reached after many failures in the past.

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