Re: Dumb Question
This is my take on the main distinction...
Collectibles rely purely on perceived value, securities have an underlying intrinsic value. Of course this exact value is relative to individual perception, but it is there nonetheless. While you cannot always sell a security for its intrinsic value, you as an partial owner have a claim to the money that it earns, which is why most successful investors base their investing decisions on some measure of intrinsic value that is determined by estimated cash flows.
I would agree that investing based purely on technical analysis is somewhat similar to invesing in collectibles, as technical traders seem to be buying more on what they think someone will pay tomorrow or in a month than what they think the underlying business is worth. This doesn't mean you can't make money in it, I know people who made thousands of dollars off the beanie baby craze, just a different viewpoint.
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