January 9, 2012

War Games - The Only Winning Move Is Not To Play

Did you ever see the movie from the early 80's called War Games?  Great movie about a computer geek who hacks into a government computer to play games and ends up playing the government computer called the WOPR a game called Global Thermonuclear War.

Fast forward to the end of the movie and the computer decides ultimately that the only winning move (in a nuclear war) is not to play.

This is a great analogy to trading the stock market.  The only to way to win this game is not to play.  Period.

Do not listen to someone who tells you that you can trade for a living or increase your returns by trading, by buying this and selling that.  Its a losing proposition.

The only rational and logical approach to the stock market is to invest, that is to buy the indexes, not to trade.

This approach will land you in the top 10% of all participants in the market!


  1. I loved that movie. Great analogy. Love your blog. I just ordered the book too!

  2. Very creative analogy. The computer in the film is somewhat cheating though--if the only way it can win is by not making a play, then it should be the loser. In terms of the stock market though, this is completely valid.