Categorized | Domaining Tips

Stock Market vs. Domain Market?

Posted on 18 March 2013 by Andrei

I always find it amusing whenever I come across someone writing about the fact that he wants to become a stock trader and “trade the news”… little does he know that by the time he reads a headline, other players are already knew about it and acted accordingly.

In other words, he’s a harmless little fish surrounded by sharks.


Does he have an edge?

Nope, in most cases he doesn’t.

There are exceptions when individual traders can leverage knowledge/experience/whatever and have an edge but usually, they don’t.

They’re competing with some of the world’s most brilliant minds, they’re competing against unbelievable raw computing power… like I said, harmless fish surrounded by sharks.

When it comes to the domain market, the situation is completely different in my opinion.

The “little guy” can actually have an edge since the commercial Web hasn’t even been around for 20 years.

I always repeat the “hasn’t even been around for 20 years” part obsessively but it’s one of the most important reason why literally anyone can develop an edge.

When it comes to the domain market, things like flexibility are of the utmost importance and being a “small timer” without an army of employees can actually be an advantage.

Of course, there are challenges like liquidity-related issues but nothing’s perfect and at least it’s reasonably likely that you’ll be able to develop an edge.

If you’re just starting out, I’d say the domain market is a better choice than the stock market in most cases. There are no “one size fits all” answers but I’d always recommend choosing an industry where you have the ability to develop an edge.

1 Comments For This Post

  1. MarkH Says:

    I always envisioned that someday the term Domain Picks would hold as much weight as Stock Picks…