"Playing the markets" is a common idiom on Wall Street.
But Peter Lynch, a mutual fund legend, is no fan of the expression.
For 13 years, from 1977 to 1990, Peter Lynch headed the Magellan Fund of Fidelity, the Boston-based multinational financial services corporation. He retired in 1990 at the top of his game and is often considered one of the best stock pickers to ever run a mutual fund.
According to Investopedia, Lynch beat the S&P benchmark in 11 out of the 13 years during which he managed the Magellan Fund, "achieving an annual average return of 29%.
"Play is the wrong verb for the stock market, this is work," he said."It can be fun work."
"You don't get a tip on the bus and buy for $10,000 some stock," he added."You've got to do some research if you're buying a stock whether you are an amateur or a professional."
Lynch said this sort of "gambling" or "playing the markets" is widespread.
"You have to separate investing versus gambling," he said. "And a lot of people are gambling and that doesn't work."
Trader Georgi Bozhidarov
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.