Why The Stock Market Isn’t a Casino! – casino with little money

One of the more cynical reasons investors give for avoiding the stock market is to liken it to a casino. “It’s just a big gambling game,” some say. “The whole thing is rigged.” There may be just enough truth in those statements to convince a few people who haven’t taken the time to study it further.As a result, they invest in bonds (which can be much riskier than they presume, with far little chance for outsize rewards) or they stay in cash. The results for their bottom lines are often disastrous. Here’s why they’re wrong:1) Yes, there’s an element of gambling, but-
Imagine a casino where the long-term odds are rigged in your favor instead of against you. Imagine, too, that all the games are like black jack rather than slot machines, in that you can use what you know (you’re an experienced player) and the current circumstances (you’ve been watching the cards) to improve your odds. Now you have a more reasonable approximation of the stock market.Many people will find that hard to believe. The stock market has gone virtually nowhere for 10 years, they complain. My Uncle Joe lost a fortune in the market, they point out. While the market occasionally dives and may even perform poorly for extended periods of time, the history of the markets tells a different story.Over the long haul (and yes, it’s occasionally a very long haul), stocks are the only asset class that has consistently beaten inflation. The reason is obvious: over time, good companies grow and make money; they can pass those profits on to their shareholders in the form of dividends and provide additional gains from higher stock prices.2) The individual investor is sometimes the victim of unfair practices, but he or she also has some surprising advantages.
No matter how many rules and regulations are passed, it will never be possible to entirely eliminate insider trading, dubious accounting, and other illegal practices that victimize the uninformed. Often, however, paying careful attention to financial statements will disclose hidden problems. Moreover, good companies don’t have to engage in fraud-they’re too busy making real profits.Individual investors have a huge advantage over mutual fund managers and institutional investors, in that they can invest in small and even MicroCap companies the big kahunas couldn’t touch without violating SEC or corporate rules.While these smaller companies are often riskier, they can also be the source of the biggest rewards.3) It is the only game in town.
Outside of investing in commodities futures or trading currency, which are best left to the pros, the stock market is the only widely accessible way to grow your nest egg enough to beat inflation. Hardly anyone has gotten rich by investing in bonds, and no one does it by putting their money in the bank.
Knowing these three key issues, how can the individual investor avoid buying in at the wrong time or being victimized by deceptive practices?Here are six actions you can start with:1) Consider the P/E ratio of the market as a whole and of your stock in particular.
Most of the time, you can ignore the market and just focus on buying good companies at reasonable prices. But when stock prices get too far ahead of earnings, there’s usually a drop in store. Compare historical P/E ratios with current ratios to get some idea of what’s excessive, but keep in mind that the market will support higher P/E ratios when interest rates are low.2) When inflation and interest rates are soaring, the market is often due for a drop…be alert.
High interest rates force companies that depend on borrowing to spend more of their cash to grow revenues. At the same time, money markets and bonds start paying out more attractive rates. If investors can earn 8% to 12% in a money market fund, they’re less likely to take the risk of investing in the market.Of course, severe drops can happen in times of low interest rates as well. Look for red flags in the financial news, such as the beginning of the recent housing slump or the international credit crisis. Don’t let fear and uncertainty keep you from participating. Remember that the market goes up more than it goes down. Even poor market timers make money if they buy good companies.3) Do your homework.
Study the balance sheet and annual report of the company that’s caught your interest. At the very least, know how much you’re paying for the company’s earnings, how much debt it has, and what its cash flow picture is like. Read the latest news stories on the company and make sure you are clear on why you expect the company’s earnings to grow.
If you don’t understand the story, don’t buy it. But, after you’ve bought the stock, continue to monitor the news carefully. Don’t panic over a little bit of negative news from time to time. Nearly every company has an occasional setback.But if there is serious evidence of fraud or declining prospects, act quickly. Restating earnings is often a clear sign that all is not well with a company’s accounting practices.4) Be patient.
Predicting the direction of the market or of an individual issue over the long term is considerably easier that predicting what it will do tomorrow, next week or next month. Day traders and very short term market traders seldom succeed for long. If your company is under priced and growing its earnings, the market will take notice eventually.5) Take advantage of periodic panics to load up on shares you really like long term.
It isn’t easy to do, but following this advice will vastly improve your bottom line.6) Remember that it’s not different this time.
Whenever the market starts doing crazy things, people will say that the situation is unprecedented. They will justify outrageous P/E’s by talking about a new paradigm. Or, they’ll bail out of stocks at the worst possible time by insisting that this time, the end of the world is really at hand.If you watch these cycles over a period of 20-30 years or so, you’ll learn a valuable lesson: It’s never different this time. Ignore the hype, and carry on.Here’s a simple conclusion
If you’ve been avoiding the market because you believe it’s a casino, think twice. Those who invest carefully over the course of many years are likely to end up as very happy campers…notice, we didn’t say gamblers.The editorial staff at MicroCap MarketPlace specializes in issued relating to MicroCap investing as well as small cap investing.

Casinos Online – Are These An Option You Should Check Out? – casino with little money

Do you like to go to casinos on a fairly regular basis? Actually, do you just like the idea of casinos? If your answer was yes to either question, you should definitely check out the casinos online. Almost everyone that has taken a look at this has been quite excited about the concept and has eventually moved on to recommend it to others and use it a substitution for traditional casinos. In most instances, it has been observed that people that have opted for such forms of casinos are quite happy with it and have actually considered it as a very viable alternative to real casinos.Once you too take a look at quality casinos online, you might end up with the same conclusion. In fact, many people consider the option of gambling online as still something that is farfetched and essentially not worthy of being considered. You would ideally want to check this option out for all that it has to offer. To begin with, the number of games that are offered by such casinos can essentially rival any of the traditional casinos out there. Since physical space is not exactly a problem, you can have as many games as you would like.Next, you can visit casinos online whenever you feel like it, even on weekdays if you’d like. There is no distance that you have to drive, and you can play as much as you want before you have to go to sleep. Therefore, this makes for a very useful option and one that pretty much everyone is sure to like. With such little effort to enjoy some fine casino games, it is definitely hard to find a reason to not like the concept as such. There is very little, if any, faults that you might observe here.Finally, the safety factor has been thoroughly worked upon to ensure that you are never really going to have to struggle when it comes to transacting for the games you are interested in. There are a lot of different security protocols that are in place to ensure that your money is always dealt in a safe manner and that you won’t have much to complain about when using your credit card or an online bank account to pay for the games in casinos online. Overall, it should be quite clear as to why you would probably want to take advantage and enjoy this form of a casino.

Benefits of Online Casino Bonuses – casino with little money

What player doesn’t want to think that they’re receiving something for selecting to play at a specific web casino? Almost all appreciate this like they’re getting a little something in return for playing and this is why most web casinos currently have introduced casino bonuses. They come in various formats and don’t all present players the same sum of money, but they’re great offers that provide players a number of different benefits.Web casino bonuses can be found nearly at at every web casino. They’re readily available even though they can differ from one a certain casino to the next so it’s worth it for players to look around to make certain they find one that suits their playing specifications. The most typical form of online casino bonus is a deposit matching bonus, where you need to deposit your own money but then get the chance to receive a bit more from your web casino to increase your bankroll. There are specific rules and standards regarding withdrawals when playing with an internet casino bonus, but they are well worth the effort whenever you increase your chances of winning big when you have a bit more to bet!That is the primary reason players love online casino bonuses – their bankroll is bigger and they feel as if they are receiving “free money”! Many casinos will have different types of bonuses since games that may be played are often specified. This is a great advantage meaning that most players can still get an online casino bonus without discovering they’re limited to playing games that just aren’t of interest for them at all.What these types of bonuses may also do by specifying games to experience is introduce you to games you would possibly not have tried. If you’re normally a table games player and also have this web casino bonus that limits you to slots, then you’re more likely to check out the games to meet the wagering requirements and you may indeed get absolutely hooked!A good web casino bonus can also act as a reason to try a fresh online casino as well. You could simply want to find one that’s better and then love a casino you’ve by no means played at.When searching for online casino bonuses, you can check out many of the leading web casinos. Just about all offer casino bonuses of some sort to players. Checking multiple casinos you can ensure that you get one that most closely fits your requirements and that provides you the most generous bonus with the best conditions and terms for wagering requirements.

About Casino Gambling – Poker, Blackjack, Roulette, Slots & Craps – casino with little money

Casinos… Think of Las Vegas or Monte Carlo, bright lights, ritz, glamour, people winning money, but mostly people losing money! You may be intrigued by the idea of going to a casino but don’t really know too much about them – please read on to learn more about the fun of a night out to a casino…According to Princeton University’s ‘Wordnet’, a casino is ‘a public building for gambling and entertainment’. Don’t be overawed if you do go, relax and enjoy. You will most likely have the chance to play slot machines or one-armed bandits as they are commonly known and perhaps other games of chance and some skill. One major thing that you do need to be aware of, is the way that a casino will look to tilt the odds in its favour, which is more commonly known as the casino’s “edge”. However, some games such as poker are played with players versus players and in this case, the casino cannot get an advantage as it is not effectively playing. In these circumstances, the casino will take a “rake” on the bets that players make against each other.If you have ever been to Las Vegas and gone to one of the casinos there, the first thing that you will notice is the fact that they more often or not have the slot machines (otherwise known as ‘one-armed-bandits’ or ‘fruit machines’) right as you go in. This is because they really don’t require too much understanding to play and it’s not uncommon to see people playing these machines for hours on end. The slot machine will typically involve a lever on the side (the one arm!) and three reels with patterns of symbols on, located in the centre of the machine. The reels revolve as you pull the lever and the idea is to generate rows of matching symbols to win, having paid your required stake via the slot usually on the front of the machine.There may be times when you will play on a machine which will have extra options available for you to use, often giving the illusion that you will have more control over the reels and a better chance of winning. This may be the case over the short-term, but always remember that playing in casinos is fun, but the house always has the long-term advantage. To give you a quick example…if you were to play a game where you had to bet on what number would lie face up after the roll of a die, then you would expect to see the casino pay six times the amount bet for a win, but in fact the casino would pay five times to maintain its advantage.This system is often found in famous casino gambling games like Poker, Craps, Roulette or Blackjack.Blackjack has always been played in casinos because players will play their chips against the House dealer with the successful gambler being paid against pre-determined odds (ie by getting a true ‘Blackjack’ which in other words is a two card combination adding up to 21, the House will pay you 3:2, or 1-1/2 times your initial wager). If you play fair, the chances are that you may end up with a profit, but more often than not, the casino will win, unless you count the cards. Card counting is a black art as far as casinos are concerned and if you are caught, you will be blacklisted worldwide! Effectively, because the playing cards are only used once and then discarded, anyone with a good memory and a highly analytical mind can determine their own odds that a certain card will or will not appear again, tilting the odds in his favour.Poker is one of the most played games in the world. Its popularity has grown massively over the past couple of years and many casinos would not offer a poker game due to the fact that they were limited to taking a rake (as discussed previously). You may be aware that poker is essentially a playing card game were players are dealt poker cards face down, and then take it in turns to place bets (represented by poker chips with a specific value) based on the strength of the cards that they hold, combined with other community cards placed face up in the middle of the poker table. The player with the strongest combination should win what’s known as the pot (the combined bets of all the players for that hand), however one of the reasons that poker is so popular is the element of ‘bluffing’ where a player may actually have a poor hand, but believes that he can make his opponents believe that he has the strongest combination by means of subtle psychology! This can be as subtle as staring one’s opponent into ‘folding’ his cards, or by moving his entire stack of poker chips into the middle of the table – what’s known as ‘going all in’.Roulette is a classic casino game, whereby a croupier gently spins a perfectly balanced, wooden roulette wheel with either 37 or 38 recessed ‘pockets’ along the bottom edge of the roulette wheel. As the wheel begins to spin, the croupier will roll a small white ball the opposite way with the intention being for the ball to bounce of raised points on the wall and to finally come to rest in one of the numbered pockets. In European casinos, the wheel’s layout features pockets numbered 1 – 36 and alternate between red and black with the number one, coloured red and zero being coloured green. However in American casinos, you are more likely to see a second double-zero 00 pocket also coloured green.Again the House pays out against set odds displayed on the cloth covering the roulette table. Typically this will offer 35:1 for single number bets where you bet on one number to win, 2:1 for any column of numbers, and evens for any red, any black, odds or evens.Craps can be the most fun to play and certainly watch. It’s also the fastest game in the casino with often more than 60 bets per hour. Players will wager bets against the casino on the result of a roll of a die, or the series of rolls of two dice. The great thing about craps is that you don’t have to be rolling the dice to bet, you can bet on how lucky you (hope) the guy rolling is going to be, which is why it can be so entertaining. Essentially, the guy with the dice is called the ‘shooter’ and the basic bet in craps is called the ‘Pass Line’ bet, and by rolling a 7 or 11, the shooter will roll a pass line winner, and can play again. If he rolls 2, 3 or 12, these are known as craps and this is a pass line loss. Any other number becomes the shooter’s point and he continues. It really is a fascinating game with many more rules and options.At the end of the day, a night out to a casino can be wonderfully entertaining, but casinos have learnt over hundreds of years how to make their games very, very addictive. They are quite happy to let you win a little here and there, but they know that in the long run, it’s you that’s going to be making them happy – do take care!