Comment by thiagooffm | Hacker News Reader

Comment by thiagooffm | Hacker News Reader

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I suggest you don't trade and instead focus yourself on growing your assets by working and doing value investing.

Trading is a 0 sum game. It's the same as playing in the casino. The only one who makes money consistently with trading is:

. your broker

. people holding illegal priviledged info not released yet in the media

. big funds, tricking people like you

In the long term, the value of stocks follow the profits which companies have, If you manage to learn how to do value investing, slowly and calmly, never really selling the companies you commit yourself to, while focusing at your work(which usually pays way more than what you can earn in the stock market).

I think generally people are addicted to losing, to having the thrill of winning/losing something, but when actually, if you want to get rich and consistently become wealthier, there's no thrill and it's a quite boring road. It's up to you which one you could take. The internet is full of forums with crazy people which pretend to be traders and winners but they are all actually addicted to the thrill and losing. Just check how much people are crazy about failed businesses and penny stocks. I wouldn't bet my money or even less something more important: the peace of my mind into this crap.

I want you to answer me a question: how anxious are you? I think a lot. You even came to HN to talk about your loss. I think you are one of the people who will never win on this game, but can actually win in life. You just need to learn how to control it.

I've been managing to grow my assets slowly for years. Have been enough time in the market. If you want to know more, shoot me an e-mail. I won't tell you what stock to buy, but guide you so you can make your own choices. I can already live a few years without working, but I'm so satisfied with my life that I don't have to. I travel every year and so on... and don't even make that crazy software dev salary some people in the US can.

Also... practice Sports. The more you live, the more money you can make.

I used to be very sick about trading and so on. Now I'm healthier, wealthier, less anxious and everything.

> practice Sports

Why advise this rather than focusing on core exercises to build injury resistance and a healthy metabolism? Is it just that in your experience, sports are a good way to motivate yourself to keep to an exercise regimen? Or something else?

I said it in general, some people find one or two things boring, but generally there's at least a sport or something that involves physical activities that they do like. I advise them to do it.

The main issue is that people don't exercise regularly, while investing and thinking about their future, when that actually makes they live less and also reduce their potential investments returns(as yield doesn't beat time)

Would you mind sharing your opinion on index funds (VTSAX, VOO, etc) and corporate bonds?

Why would you pay somebody to administrate your own money and give you random results while you can do it yourself?

Corporate bonds. I don't know the legislation in the US, but if there's any chance of you losing your money in case of default or anything. Don't do it. Don't look at how much things yield, but also evaluate how much risk there's behind those things. Nevertheless, if you think it's a good idea, as long as you diversify your portifolio and is investing at most 10% on it. The worst that can happen is that you lose 10% of your assets.

In my opinion, just invest with good diversification in businesses you think are good. Read a book or two in value investing and only invest initially in companies which have not too much debt and have had profits in the last 5 years, for instance. As you progress and get more comfortable, do more complex analysis and invest in companies with a more free criteria.

It might be boring at the first place, but that will prevent you from losing money. If you aren't working for a fund and isn't absolutely rich, just getting a paycheck at the end of the month, the yield doesn't matter too much. Just do the math for the case below and think for yourself:

You save 1k a month for 30 years. Every year you get a liquid 3% yield(I'm making it simple by excluding inflation). Compare this to with a 6% yield(DOUBLE!). Just check how the difference is small.

Now, compare that you saved instead 1.1k a month for 30 years. Only 100 more. There you go. Do the maths, all the yield doesn't matter. 100 dolars in that case is 10% of the total income your assets will have monthly, it's a lot.

The stock market won't make you rich, saving and having intentions of growing your assets will.

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