The secret to winning on the stock market is surprisingly simple

Discussion in 'Wall St. News' started by OddTrader, Apr 21, 2017.

  1. The secret to winning on the stock market is surprisingly simple
    April 21, 2017

    http://www.news.com.au/finance/supe...e/news-story/aacc6f5e88e531dfd356d3c37ba5c26e

    WHEN most people think about the share market, they envisage a world where investors try to pick which stocks or mutual funds will finish ahead of the pack.

    It sounds great in theory, but the odds of doing it successfully over the long term can be slimmer than winning a lotto prize.

    Twice each year, the S&P; Dow Jones Indices checks how US fund managers are performing against indexes in various categories.

    For the first time, it has a full 15 years of data to compare. That stretch of time captures not only two big rallies for the stock market (from 2002 to 2007, and from 2009 to today) but also the worst downturn since the Great Depression (2007 to 2009) — which means it should offer a look at the full breadth of a manager’s skills.

    The bad news is that most funds did poorly relative to their index, and not just ones that focus on US stocks, whose performance has been getting the heaviest scrutiny.
     
    murray t turtle and wave like this.
  2. %%
    Thanks not that ''race horses'' are important. Partial discloser[ my nickname is turtle+ i like trends . Wisdom is profitable to direct.LOL
     
    ironchef likes this.
  3. SunTrader

    SunTrader

    Fund managers make money by getting investors to invest their money with them to collect fees.

    Results are secondary.

    Will these geniuses that write stories on them ever understand this. Noooo.
     
    VPhantom and murray t turtle like this.
  4. ironchef

    ironchef

    Does it mean most race horses (traders) are doomed?:(
     
    murray t turtle likes this.
  5. bookish

    bookish

    "The secret to winning on the stock market is surprisingly simple"

    Yes, its called "insider trading"

    Too bad I don't know any insiders and am chicken about going to prison.
     
    aex likes this.
  6. doggyfx

    doggyfx


    Where is the statistical data? While we are fancying our envy and justify our wipeouts those guys keep making money for their clients. I think if it was so unprofitable they would continue pouring their wealth in those funds...
     
  7. Mtrader

    Mtrader

    What they don't say is that this article is written in HINDSIGHT. If the people who gathered all the information would know this in "FRONTSIGHT" they all would be billionaires.
    Articles like this are just written to fill pages, as that is what these writers are paid for.
    I compare it to junkfood. People get addicted to junkfood but it is bad for their health. This article is the same: people get addicted (they love to dream) and it is bad for their health too, more specifically their FINANCIAL health.

    For most people NOT winning in in the stockmarkets is surprisingly simple.
     
    Last edited: Apr 22, 2017
    Clubber Lang, aex and Sergio77 like this.
  8. Sergio77

    Sergio77

    Sports and movie business are even worse but no one talks about this, how man y people are destroyed by trying to become athletes and movie starts. Fund managers as a group are doing much better.
     
  9. SunTrader

    SunTrader

    How many actually?

    Is your source supermarket tabloids?
     
  10. ironchef

    ironchef

    Simple math: There are ~35,000 high schools in the US. There are 29 NBA teams, each drafts 2 rounds, so every year ~60 gets guaranteed contracts. Assuming each high school graduates 5 serious basketball players aspiring to be pro basketball player, the odds are ~1 in 35,000.

    Day trading: 5 out of 100 are profitable. Much better odds.
     
    #10     Apr 22, 2017