Comparison between Real Estate and Stock (ZT)
(2007-05-31 06:51:22)
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The common things between RE and stock:
1. rule of supply and demand.
2. rule of human psychology
3. rule of time value
the major differences are:
1. RE goes up quickly but goes down slowly. Stock both goes up and down quickly, and in many cases, it goes up slowly and goes down sharply.
2. smart people can make $$$ from stock no matter it is up or it is down because of the magic of option which RE does not have.
3. stock still has rules to follow. Usually a trend won’t disappear in 1 day. It usually continues in 2-3 waves. If you miss the first one, you are smart and normal. If you miss the 2nd one, you are so stupid. If you do not get out in the 4th one if any, you are really really stupid and deserve what you get.
4. In RE, you compete with yourself. In stock, you compete with so many smart or normal people who have opposite interests.
Too many…
Conclusion:
1. stock is more exciting. Smart people trade stock when a trend is clear and get out when a tread is too clear. Speculation is not blamed in this game. RE is a better investment for patient people.
2. there are so many stocks to select. You just need a computer and high speed internet access to do the job. No any other hassle.
3. stock market reflects any significant change in reality. If you know something, you can make $$$.