/sci/ - Science & Math

>>4721027

What I am saying is very simple. If you don't have a benchmark for your earnings from the stock market, then you don't actually know whether you're winning or losing.

There is no sense in trading in a airy fairy fashion, making lots of money and then turning around and claiming you've some special skill or that you've been successful.

Point: A rising tide lifts all boats. How do you know your performance isn't simply the result of random fluctuation?

That is why you need to know the average risk/return profile of your trade. You DO need to know basic finance, even if you're not doing fundamental investing.

For the record, I don't do Fundamental Investing myself, I do indexation across thousands of stocks. But I still have to be aware of price and value across the market. That applies whether you are macro level like me, or working at the microscopic level of buying and selling indivdual shares.

>>2164796
lol