3 ms·
you dont need to beat the market. you just need to beat pure chance to make money
by ekianjo 3y ago
you dont need to beat the market. you just need to beat pure chance to make money
- hackerlight 3y agoYou need to beat fees and 1/2 spread and a few other costs.
- ekianjo 3y agoYes, this would be a more complete statement.
- reissbaker 3y agoIf you aren't beating the market you're losing money in opportunity cost, because you could've just bought an index fund and made more. (Also, you don't just need to beat pure chance, because pure chance is not guaranteed — or I think likely — to result in net zero losses on average, since you are then in an information-asymmetric environment where your trading partner looks at data and you do not. But regardless, even if you "make" money but underperform the market, you are effectively losing money in opportunity cost!)