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21408100 No.21408100 [Reply] [Original]

Does actively trading actually provide results that will consistently beat the market over time? And how often is success merely the result of following the trend?

>> No.21408171

>>21408100
most day traders perform worse than the market. occasionally a guy will get lucky and make a shitload to brag about it, but thats it.

>> No.21408578

>>21408171
Not specifically day trading, as with the further and further implementation of tech to exploit inefficiencies that route is pretty much done, if it was ever actually profitable beyond luck. Does the process of managing your own portfolio really beat the general trend outside of short term events like the '08 and corona crash? Is it worth the time and effort vs other ventures? I'm not convinced anymore.

>> No.21408855
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21408855

wondering as well

>> No.21408956

Just passively buy FAGMAN and beat the SP500.

>> No.21409579

>>21408100
if you start small and work your way up all covering your trades (taking profit, dividend trades) etc then yes you can beat the market. Fear and greed are powerful though and may take you years to discipline yourself against them.

>> No.21409864

I’m convinced the best way is common sense safe investing. Sure you might be able to find a future profitable company at the floor, but look at what happened to no-shit companies like apple, microsoft, google, and tesla. If you bought a significant amount of any of these safe stocks a month ago you would be up a lot of money right now. Meanwhile, if you were trying to trade penny stocks for huge gains you’d likely hold too long, not hold long enough, get immediately dumped on etc. it’s just not worth the stress of having to constantly check the stock price.

Everyone’s putting money into stocks right now because there is no better place to put your money. Inflation’s coming so literally everyone with a large amount of money is putting it somewhere it will increase in value. Everything’s on a bullrun right now, even crypto. Look at ethereum.

Buy the things people with a lot of money, especially rich boomers would invest in

>> No.21410014

>>21409579
But the real question is if that's worth the time and effort vs say starting a business and utilizing profits to grow that venture and work on others. Any method of effectively making profit will include risk, but it seems that trying to outdo the market long term is a much higher risk to reward than other methods.

>> No.21410230

>>21409864
That's just it, it's easy (easier) to see quick gains after a large drop, but even if you just threw money in indices starting in January you'd already be up if you just waited a bit. Yeah there were some incredible returns early on but it's easy to look at charts in hindsight. How many people won on things like GNUS and also managed to keep and grow that win compared to people that got burned? Seems like one big emperor's new clothes scenario where no one will ever show their actual profit/loss, and certainly not after 5-10 years.

>> No.21411013

>>21410014
business, trading, it's all scalable. As someone who trades and is self-employed, trading is much more comfy. no overhead.

The time and money investment is a lot between the two either way.

>> No.21411679

>>21411013
How long have you been trading for? And what is your net profit like?

>> No.21412276

>>>21408100
I recommend filtering stocks first before investing. You want an increase in earnings, an increase in sales, low debt, and a good business idea.
I've almost exclusively invested in companies with a P/E < 15, 5y Earnings > 10% y/y, 5y sales increase > 20% y/y and positive quarterly sales increase from this year.
I started using this approach in april (instead of yoloing) and average about 1% profit every day just by sitting and doing nothing. Roughly half of the stocks popped 40% a few weeks after i bought in

>> No.21412512

>>21412276
How much of this is due to SPY being up a good 30% since the beginning of April? My question is the longevity of even bothering with trying to squeeze a few bucks for the amount of effort usually involved.

>> No.21412557

>>21408100
trading works if you have a very high IQ and other qualities for it. i dont. so i hodl and im doing great.

>> No.21412617

>>21408100
the shorter the time frame, the more random things become.
day trading is borderline random, only way to make money is trading something specific, like TA patterns or momentum, there is no fundamentals on an hour to hour basis.

>> No.21412768

>>21408100
Lol no trading is degenerate gambling. There are lots of stories of swings making it but countless more lost, its not even close.

>> No.21412769

>>21412617
I've found far more success in simply trading the momentum of low float stocks, but certainly nothing I would want to trust real money on or to be a consistent source of revenue. TA is really just hindsight and confirmation bias. Again, I believe market conditions have far more to do with anything else.