20% per year with as little risk/work as possible?

Discussion in 'Trading' started by michaelday, Jun 9, 2002.

  1. Commisso

    Commisso Guest

    :) Dark your humor cracks me up!
     
    #21     Jun 11, 2002
  2. I love it! Mind if I make that my sig?
     
    #22     Jun 11, 2002
  3. drdr

    drdr

    20% down !!!!!!!
     
    #23     Jun 11, 2002

  4. sure, go ahead

    credit where credit is due, its not my line- i heard it years ago in a speech by Thomas Sowell

    p.s. the other one i like is 'bad statistics are up 11.6% this year'
     
    #24     Jun 11, 2002
  5. thanks, those are great :)

    here is a little thing I wrote about 2 years ago under the title, which I am sure you have heard before, "Lies, damn lies, and statistics"

    This was when powerball fever was running rampant and nobody would shut up about it. Also, these stats have not been adjusted for the fact that there are undoubtedly many fewer millionares now, but whatever, the point was to be humorous, not statistically accurate, since statistics were exactly what I was making fun of by taking it to a rediculous extreme.

    >>
    I crunched some numbers and found something you might find interesting:


    Odds of winning powerball = 1 in 80,000,000 OK we know that, its a given.

    But did you realize that....

    Given there are 7 million people in the world with a net worth of 1mm+ and since there are about 5 billion people that's 1 in 714 or...
    Odds of becoming a millionaire = 1 in 714

    Given that there are about 55,000 people in the world with 30+mm net worth, that's about 1 in 90,000 (90,909 to be exact) or...
    Odds of becoming a multi (30+) million = 1 in 90,909

    And given there are about 170 (maybe?) billionaires in the world, that's about 1 in 29 million or...
    Odds of becoming a billionaire = 1 in 29,411,765

    Therefore you are 2 3/4 times more likely to become a billionaire, 880 times more likely to become a multi-millionaire, and 112,045 times more likely to become a "plain old" millionaire.

    Conclusion: Shut the &#%$ up, stop trying to win the lottery and go to work. You're more likely to become a millionaire on your own!
     
    #25     Jun 11, 2002
  6. Nemsy

    Nemsy

    #26     Jun 12, 2002
  7. DT-waw

    DT-waw

    How can Forbes calculate the number of the reachest people in the world? Some of them can have accounts in offshore countries, Switzerland, and their wealth is top secret.

    People make common mistake when they talk about statistics or averages. Average is simply an average and nothing more. It means you can have significantly different outcomes than an "average".

    Things, events around us are dynamic, non-linear and unpredictable. Statistics is just a imperfect ( but useful ) tool.

    20% per year with little risk - its possible.
    Just use optimized systems across many liquid markets with good, conservative money management. "Buy and hold" strategy on equity markets will give you about 9% a year on average :) Two months ago somebody on CNBC told that real estate prices in U.S. where up 20% per year in the last 10 years.

    DT-waw
     
    #27     Jun 12, 2002
  8. Mike777

    Mike777

    74.3% of all statistics are made up.
     
    #28     Jun 12, 2002
  9. Runningbear,

    I really like your 90-10 idea. Are you currently doing that? If so, how long have you done that for and how has it panned out for you?

    MYD
     
    #29     Apr 4, 2003
  10. It must be a Bear market; this is the second thread today that's come out of hibernation from last June.
     
    #30     Apr 4, 2003