Guest Author - Tony Daltorio
It looks like CNBC is at it again. The business channel has once again this year come out with their Million Dollar Portfolio Challenge. There are some differences in this year's contest,such as being able to day trade currencies as well as stocks. This contest just seems to reaffirm the idea that CNBC continues to be determined to help Wall Street separate the 'suckers' from their money.
CNBC continues to foster the idea that people can make serious money via very short-term or even day trading stocks. This idea,if it was ever valid,died in the great tech stock bust of 2000. The beneficiaries of short-term trading are the brokerage firms who make commissions on all the transactions,Wall Street firms who keep thousands of analysts employed recommending stocks for people to buy,and networks like CNBC who benefit from people's interest in watching CNBC to see what the 'hot stocks are. Notice that one of the beneficiaries was NOT the people who do the trading. These people,even if successful for a short period of time,eventually burn themselves out and burn through all of their money too.
A person only needs to see the titles of some of their shows to see where CNBC's emphasis is. One of their more popular shows is "Fast Money" where traders are pitching their ideas to make quick money. CNBC is doing a true disservice to the investing public. There is no fast and easy way to get rich quick in the investing world. It takes patience and discipline. Perhaps CNBC should have a million dollar contest where people actually invest. Perhaps have people pick 25 stocks and have them hold the stocks for a year(with perhaps 2 changes allowed). Then whomever has the biggest gain in their portfolio would be the winner. What a novel concept-investing for the long term! Although one year is still a very short time when it comes to investing.
Nearly all of the very successful investors,such as Warren Buffett and the like,has always emphasized investing for the long term. Warren Buffett could care less what the stock market does in the short term and neither should you.
