This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

A Gambler Psychology on Wall Street

Stocks in this article: AAPLNFLXSCHW

Your odds on the Wall Street casino get longer the shorter your time horizon becomes. I joke that Charles Schwab (SCHW) is my "bookie," and that when I like a horse I call my bookie on the Internet machine to place a bet.

The "vig" isn't bad, under $10 per trade, but that's not the whole story. The rest of the story are the short-term moves taken out by the professionals in programmed trading, and the slightly longer moves taken out by other gamblers in momentum trades. Add in those costs and you're better off at the blackjack tables.

The longer your time horizon, the more all that washes away and becomes irrelevant. The shorter your time horizon, the more you're gambling rather than investing and the worse you're going to do. Over time, you'll do about as well as everyone else.

I hope this column doesn't lead you to a preference for the sports pages, because there are always good opportunities out there and I'm always on the lookout for them. You should be, too.

But that's the reality of today's market when great companies like Apple are trashed and speculative ones like Netflix are raised on high.

If you want to make money on the stock market, buy good companies at reasonable multiples, hold them and ignore the noise. However, if you want to play, you can play, and the Street -- like Las Vegas -- will be happy to take your money.



At the time of publication the author had positions in AAPL and SCHW.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,871.14 +43.39 0.24%
S&P 500 2,073.37 +0.54 0.03%
NASDAQ 4,810.33 +23.0130 0.48%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs