Undecided Question: I thought the average return on stocks is 10%..Did I just get lucky or what?
HydrogenCatalyst Asked: Undecided Question: I thought the average return on stocks is 10%..Did I just get lucky or what?
I put in $8000 in the stock market in October, and the current balance is $10,300. I haven't been day trading, but I have made some adjustments to the portfolio since then.
I realize that anyone can make money when the stocks are going up, less people make money in a downturn.
I am under the impression that there are more losers than there are winners. Is this right?
Answers:
There certainly have been a large number of losers during the past 5 or so years.You might be operating under what is known as beginner's luck.Let us know how you have been doing in about 5 years.
You probably made some good choices along with some luck. However, the market has been rising the past couple of months. Winners & losers are determined by the markets.
There is no average, but you do get cudos, and you beat 95% of money managers in three months compared to what they made in 12.The good news is you made adjustments, a good trader will do that, a buy and hold trader is totally at risk, and has no plan.The bad news is you made the money while the market was having a strong recovery.I am going to give you a suggestion, and don't get mad.Switch to cash tomorrow.This market is about to make a correction.There is more upside, but you will see this market make a big correction in the near future.(20% correction).Once the market has corrected, chose your stocks and repeat what you did in the last three months.Patience is everything.
Bragging huh!?
You can make any return in 3 months…it is a yearly average that the 10% refers to. Also, it depends on how you decided upon the stocks…rumour, random selection, hot tip from someone, media promotion….yep, you were lucky. Careful study and selection….maybe not but a one shot gain of a couple of thousand dollars does not mean you can do it again… repeat this over and over and you may have reason to be happy….
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the "average" is 10%. meaning if you just randomly pick a bunch of different stocks to put your money into, it'll get you about 10%.
For people who throw money into stocks, there are much more losers than winners.
But if you keep your eye on the market, and make some adjustments, you can keep your money balanced as well as a make a small amount.
What determines losers from winners is how you play your money once you earned it.
Just remember: you can lose your money just as easy as you gained it.
Duh,average is some go up more and some go down
There are stocks that have increased 40%
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