This is all theory, and I'm posting it to see what others think
During each trading day , we have the best preformer and the worst preformer on the 500 stocks of the sp500, that's a fact , we have best performer and worst performer of the year , that's a fact , we have best performer and worst performer of the decade , that's a fact too .
Now
Let's say I can buy 10$ in each of these stocks , that will equal to 5000$( assuming they are 500 stocks ) , Now for sure I will have the best performer in my list and the worst performer , cool.
Now I'll close the stocks that gained 3% , leave the rest
So for each stock that gained 3% I'll have 13$
I'll take that 13$ and buy again in those stocks , each 13$
Next day again we will have the best and worst performer .
Basically if I buy 10$ in a stock I'll leave it until it gains 3%
Or let it set there indefinitely
If it gains 3% I'll sell it and buy again with 13$ , basically compounding my winings.
For example in 2010 to 2022 , netflix gained 1425%
If I bought 10$ and sold at 3% profit , I could have done that 475 times , which totals to 1.5 million
What's wrong here ?
Remember I'm deploying 10$ at each and every stock of the sp500
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