I tried day trading for a short time; I didn’t lose, but I didn’t gain much either. I had fun, but when it came time to do my taxes, it was a nightmare! Plus, oh yeah, if I’d had that money in an index fund that year I would’ve made about 16%.

I knew what I was doing though, and didn’t actually think I’d beat the markets. How can any lowly individual investor actually think that? The information is SO incomplete, and by the time the news and reports trickle down to us (if you read them at all that is), the big players have already acted on them and moved the stock.

It’s fun, but I agree-you might as well be getting some free drinks out of it!

Any and all funds will invariably cost more to keep than any given stock. Simply put, the only time a stock costs money is when you go into it or come out of it.

Personally, I rely upon a well-known stock advisory service that aims to beat overall market returns over the next 3 – 5 years, minimum; it’s a “buy-and-school” strategy, actually. Invest in good companies — not tickers — and keep tabs on them going forward.

It is unfortunate but sometimes, with index funds, the managers get paid whether the fund does well or not. And even with a modest subscription to a reputable stock advisory service, I’m coming out ahead of the game.

However, if you are disciplined enough to take a very small portion of your portfolio for use as “mad money,” and use only that small amount, then it is the same thing as playing cards. The danger comes when you start mixing business and pleasure. Leave investment and retirement money in investment/retirement funds.

But use your play money for play money – casinos, stocks, horses, gadgets and gizmos… As long as you are responsible and draw the line, then it is really no different.

On another note, the casinos always win. Try poker instead. You are playing against the player and not against the House.

Great post – keep the gambling in the casinos.