Anyone would be deeply troubled by a volunteer physician's assistant attempting to perform triple-by-pass surgery. So why do individuals expect to be able to make money in the stock market as a hobby, without the proper training and proper tools? The advent of Internet trading has placed some very dangerous instruments in the hands of novices. Investor education will have to become a priority if we hope to maintain the wealth that this unprecedented bull market has created.
Andrew Lo in Wall Street's 25 Smartest Players (Smart Moves) from Worth (October 1999)Trading is not investing. The difference is critical and involves much more than the duration of each stock position. Investing is a bet that a company or industry will improve its profitability or market share over time. Trading is a bet the stock will rise or fall in the next ten minutes or hour. Investments can lead to real gains for all shareholders as the market rises, while trades require someone to lose a dollar for every dollar you gain.
Robert X. Cringely in Day Dreaming from Worth (October 1999)
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