A while ago I heard a crude statement and im not sure if it can be backed up by references but if true its a scary thought when you consider it. I read somewhere that90% of people who attempt to invest in the ASX(Shares) as an individual lose out??
I've been trying to get my head around it and although its definitely easily done losing out on the Stock Market Im not sure it can be said 90% of people fail.
ie if I talk to people who have no knowledge or have dabbled with investing they'd generally say they'd invest in a blue chip company, ie BHP, RIO, CBA.
To me the sure way of losing money is getting spooked when there is a sudden drop so remove your investment where as the longterm person I cant see how they'd ultimately lose 90% of the time?
Obviously there are some bad investments, ie TLS.
To me if someone invested in Stocks with little preparation/knowledge they could potentially make a loss but I think realistically though their earnings/growth is limited (in the longterm)
Quite some years ago I hypothetically wrote down shares I would have bought, these were Woolworths, Qantas, CommBank, CocaCola and Westfield.
If that was my portfolio, besides Qantas id imagine id be doing comfortably now with those options.
As for schemes such as Forex, Options, CFD's etc, from what I gather there, you're constantly competing with others so a very risky and high chance of failure, where as in theory with Stocks, potentially everyone could be a winner.
I'd love to see what other people's views and thoughts are on this.