I Guess They Showed You Didn't They!

Bob,

Sorry to hear about your bad experience in the markets. One of my past occupations was that of licensed commodity broker. There are people who do make money in the markets:

1. Brokerage houses - brokerage fees
2. Underwriting firms that float stock issues - underwriting commissions
3. Stock and Commodity Exchanges that charge per transaction fees
4. Insiders (corporate officers and board of director members who can actually engage in insider trading, based on knowledge the public does not know, as long as they disclose anticipated purchase and selling transactions)
5. Very large instutions that can literally move the direction of markets at will.
6. A handfull of stock and commodity brokers. Contrary to popular myth, most brokers make very little money and the vast majority are in and out of the business in short order.
7. The colorful investment guru industry that pumps out hundreds of millions of dollars in books, seminars, and trading courses that are almost universally worthless.
8. Fund managers (mutual funds) - management fees
9. The occasional investor who gets lucky.

The most famous commodity trader of all time was Jessie Livermore. He commited suicide after losing his fortune in the market. Trading stocks, commodities and currencies is an exceptionally difficult business for the little guy. The vast majority of investors and traders lose money. They always have and always will.

When you buy a share of stock, you instantly lose money. You are guaranteed to never get the best price because of the spread between the bid and ask price, so you always start at a loss. Then you have to add the costs of brokerage fees and exchange fees. You always start at a loss. It's guaranteed every time and you have to make up this loss just to break even. Then, when you sell, you have the same guaranteed, built-in losses. Then investors wonder why it seems impossible to make money.

The government will not close access to the markets for the general public because the economic impact would be catastrophic. In order for the flow of capital to oil the movement of commerce, vast investment resources are required from hopeful investors like you and me. I can promise you that Wall Street will not be restrained in any meaningful fashion.

Having said all the above, the occasional person does get lucky. Over the past 25 years I have made and lost money in the markets and am fortunate to be slightly ahead. But, this is not a good thing. My time and energy would have been better spent fishing.