I remember the rally in gold prices. That is something I would have gotten in early enough - to make so serious money.
And the same with the banks collapsing in 2008. If you invested in the ones that didn't go bust - you would have returns today which would be multiples of your original investment.
In these volatile situations - the stock either goes to the floor - or rebounds back to the roof. So you kinda' have a 50/50 chance either way of being right. No real smarts are involved.
It is the same with any 'bubble'. Will it burst - or will it inflate a bit further? Usually when you are asking those questions - there is a 50/50 chance it could go either way.
I remember when oil was at $147 a barrel. I was convinced it was a giant bubble. Partly because I had recently read a business biography which was published ten years earlier. And in there - a famous trader was worried about the 'bubble' in oil prices back when it was just 25 dollars a barrell. So that alone convinced me that not enough had happened in ten years for $147 a barrel to be a sensible price.
And sure enough - within a few months - it had collapsed to about $35 a barrel.
I am just using these anecdotes to point out that volatile shit happens every 2-3 years. And if you have 'fun' money to hand - you can keep calm whilst others are panicking. And that alone will give you a big edge.
Like I say - I am not trying to look smart. Since obviously I am pretty thick since I didn't actually invest any money (since at the moment I haven't organised my finances enough to have 'play' money). And also - these are mostly 50/50 type scenarios. Where luck alone can help you be on the right side of the bet alot of the time.
And the same with the banks collapsing in 2008. If you invested in the ones that didn't go bust - you would have returns today which would be multiples of your original investment.
In these volatile situations - the stock either goes to the floor - or rebounds back to the roof. So you kinda' have a 50/50 chance either way of being right. No real smarts are involved.
It is the same with any 'bubble'. Will it burst - or will it inflate a bit further? Usually when you are asking those questions - there is a 50/50 chance it could go either way.
I remember when oil was at $147 a barrel. I was convinced it was a giant bubble. Partly because I had recently read a business biography which was published ten years earlier. And in there - a famous trader was worried about the 'bubble' in oil prices back when it was just 25 dollars a barrell. So that alone convinced me that not enough had happened in ten years for $147 a barrel to be a sensible price.
And sure enough - within a few months - it had collapsed to about $35 a barrel.
I am just using these anecdotes to point out that volatile shit happens every 2-3 years. And if you have 'fun' money to hand - you can keep calm whilst others are panicking. And that alone will give you a big edge.
Like I say - I am not trying to look smart. Since obviously I am pretty thick since I didn't actually invest any money (since at the moment I haven't organised my finances enough to have 'play' money). And also - these are mostly 50/50 type scenarios. Where luck alone can help you be on the right side of the bet alot of the time.
