Re:Almost 80% of Private Day Traders Lose Money
by Spooky23 on Monday August 22, 2016 @03:54PM
(#12338949)
> If you picked Yahoo in the late 90s, a home run hit you.
To abuse the baseball analogy, even exceptional hitters don't get on base > 60% of the time. If you picked Red Hat or Oracle, you didn't hit a home run, but you still beat the VTI.
That's why you diversify. One safe way to do it is to buy the market. Another way is to buy a basket of diverse stocks. That basket is a higher risk but also has a higher potential of reward.
To abuse the baseball analogy, even exceptional hitters don't get on base > 60% of the time. If you picked Red Hat or Oracle, you didn't hit a home run, but you still beat the VTI.
That's why you diversify. One safe way to do it is to buy the market. Another way is to buy a basket of diverse stocks. That basket is a higher risk but also has a higher potential of reward.