Statistics: why the stock market is the easiest market to trade

Discussion in 'Trading' started by Troy Bombardia, Jun 10, 2018.

  1. DepthTrade

    DepthTrade

    Yep and this is because for instance, to be listed on the dow jones one needs to meet certain criteria and when you don't, you're unlisted and replaced. If you look at how many companies have been replaced on that index, you'll see it has collapsed over and over again since it's inception. That's why it's always creeping up, losers are quietly replaced by a mover.
    So, when you see a crash it's really worse than we realize, because stocks can't even be replaced fast enough.
     
    #21     Jun 12, 2018
  2. SunTrader

    SunTrader

    So the stock market has a upward bias and today at the 9:30 open Dow, S&P, Naz and Russell futures were all up near their globex highs. They then all went higher ... except the Dow. Then the Dow started breaking down and went to a new LOD low of the day. Hey what happened? The research said ..... The others broke but not as much. Good chance it was all meaningless in the big picture.

    But stats show buying the day after a down day is better odds than after an up day and vice versa. Though as others have said already traders not investors care about today. Not tomorrow.
     
    #22     Jun 12, 2018
  3. I disagree. The easiest is the real estate market. Most people I know who speculate in real estate make money. Most people I know who speculate in stocks lose money.
     
    #23     Jun 16, 2018
  4. tomorton

    tomorton


    It doesn't necessarily follow. Apart from anything else, the real estate demands a far greater initial capital per "trade", so participants are not the same group or characteristics. The stock market has such a low barrier to initial participation that any clueless idiot can be in within minutes.
     
    #24     Jun 16, 2018
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  5. _eug_

    _eug_

    Real estate can also pose serious liquidity issues depending on where you buy. Also transaction costs are heavy (mortgage penalties, legal costs, land tranfer taxes etc.).
     
    #25     Jun 16, 2018
    tomorton likes this.