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You are statistically guaranteed to have worse expected value as a retail stock trader than at the blackjack table.
by ultraluminous 7y ago
You are statistically guaranteed to have worse expected value as a retail stock trader than at the blackjack table.
- dd36 7y agoHuh? You’re highly unlikely to go to zero making trades.
- ceejayoz 7y agoThe same is true for Blackjack. The house has a 0.5% edge if played properly, so as long as you're not making bets that are most of your capital, it'll take a long time to go bankrupt. Meanwhile, trading stocks on margin...
- zannaxy 7y agoRemember: Stocks that don't pay dividends are not an asset, they are a time capsule you hope is bigger by the time you unearth it.
- ultraluminous 7y agoI have no idea what you base this statement on. You are absolutely likely to go to zero by continuously making market trades as a retail investor. Every trade has two sides and the side you're trading against is for the most part significantly better informed than you. That's why Robinhood makes its money by selling their 100% retail order volume.
- mooreds 7y agoDo you have a source for the Robin Hood statement?
- fastball 7y agohttps://www.investopedia.com/articles/active-trading/020515/how-robinhood-makes-money.asp https://www.investopedia.com/articles/active-trading/020515/...
- mooreds 7y agoOr https://www.bloomberg.com/news/articles/2018-10-15/robinhood-gets-almost-half-its-revenue-in-controversial-bargain-with-high-speed-traders https://www.bloomberg.com/news/articles/2018-10-15/robinhood... .