A recent post on Reddit’s r/MiddleClassFinance asked a question that’s clearly resonating with everyday investors: “For someone like me, with limited knowledge, limited funds and kids to feed, is this really worth the time and effort? Or is it just another form of gambling at this point?”
The original poster described themselves as a small-time investor with a college degree, working in a professional field that “might get eliminated by AI in the future.” They have no generational wealth, no special training, and limited time. They’ve taken a basic economics class, read a few books on value investing, and said their past stock wins were probably “nothing more than dumb luck.”
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Stick With Index Funds?
The post had many thoughtful replies from people across various backgrounds, and the overwhelming consensus was that stock trading, especially short-term or individual stock picking, isn’t worth it for most people.
“Time in the market > timing the market,” one top comment read. Another person added, “Buying individual stocks with our limited knowledge is akin to gambling in my opinion.” They pointed out that even professional money managers often fail to outperform the market. To succeed at stock picking, they argued, you'd need to not only identify undervalued companies or anticipate major events before others do, but also time your exit perfectly.
Instead of trying to beat the market, many advised the original poster to invest in low-cost index funds like Vanguard Total Stock Market ETF (NYSE:VTI) or Vanguard Total World Stock ETF (NYSE:VT). One person, a longtime broker, shared, “Very, very few [traders] made money and even less when compared to people who just bought things on sale and held.”
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Another person described a retiree with $7 million invested solely in SPDR S&P 500 ETF Trust (NYSE:SPY), who would calmly buy more during market drops. “That’s the guy I modeled my investment strategy after,” they wrote.
Day Trading?
The thread repeatedly warned against day trading. One person said, “Statistically it’s worse than gambling! You’re more likely to lose your money day trading than spending time at a casino.” Others noted that professional firms use machine learning and advanced algorithms, making it nearly impossible for small investors to compete.
Several people compared it to putting $50 on a roulette wheel. “Buying individual stocks based on news, hearsay, or personal belief with the intent of selling high and buying more low is the same as putting $50 on #24 to see what happens. It's gambling.”
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Some Still Take Small Bets
Despite the caution, a few people admitted to taking small speculative bets with money they could afford to lose. One person said they split their weekly investments between index funds, crypto, and a few individual stocks, and had seen good results, but admitted: “There are no guarantees… some of these stocks could go to zero.”
Another investor who had been trading for years added, “With a system, it is a limitless income generator—but that is likely after years of loss, frustration, and learning, at least it was for me.”
While a few people pointed out success stories, almost everyone agreed that the average person is better off sticking to long-term investing in diversified funds. As one put it: “Long-term investing in low-cost index funds is the only way to basically guarantee returns.”
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