Playing the stock market is tough for the experts because they don't really
know what's happening. You can take their advice, and just be one more step
behind them. Buying indexes gives you the collective wisdom of the entire
market (whichever one the index tracks). Most of us do not have them time
or patience or resources or luck to be successful trading individual stocks.
--
bp
part15sbs{at}gmail{dot}com
On Tue, Jan 29, 2019 at 12:57 PM John Osmon <jos...@rigozsaurus.com> wrote:
> On Tue, Jan 29, 2019 at 09:37:09AM -0600, Lewis Bergman wrote:
> > Indexes do well. You get the benefit of a pretty well managed fund but
> > without the high costs. All those indexes add and remove stocks regularly
> > which keeps their performance generrally marching upward.
>
> Yep. If you get into the math of portfolio management it becomes pretty
> obvious that a random smattering of diverse stocks performs (on average)
> at least as good as the market as a whole. While picking stocks has
> higher volatility -- and thus more risk/reward.
>
> If you want to pick stocks rather based on something other than an
> index, you need to be lucky, or have information few others have.
>
> To bring it back into networking, look up some of the HFT folks (Anton
> Kapella here?). Geting a few millisecond advantage of information can
> sometimes *BE* that "information few others have" and thus can
> make/break transactions.
>
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