Young kids should stay away from the stock market

Posted by Dr. Yan Lyansky on 26th Oct 2021

Black & Scholes won the Nobel prize in Economics for their work on a non-deterministic stock market option trading model. It used Ito Calculus ( an extension of standard calculus using Brownian motion ) to provide a model. It is based on the risk free interest rate ( to provide positive drift ), and random noise via a normal distribution to model random news cycles. The model assumed zero cost to trade, and free and fair information.

Trading costs have fallen to near zero levels, however information is not free nor fair. Illegitimate market manipulators control new cycles to get unsuspecting buyers to purchase bad stocks due to false press releases. The industry has been feeding the false information narrative for generations. Most unsuspecting young kids believe they will make a fortune in the market. The supermajority lose big and stay away from stocks forever. This theme has repeated itself for generations. The stock market is not fair, career traders manipulate news to get you to buy "bad" stocks. Find a better game to play....where you have a fair chance to win.