Saturday, December 28, 2019

My #1 Way To Beat the Market

      This post is a continuation of the $50 a month stock challenge I started October 14, 2019.  Click on, "No Commission Stock Trades", on the right side of the page to read from the start. 


     YOU DO NOT HAVE TO BE A GREAT STOCK PICKER, JUST DO NOT BE A BAD ONE.

      I beat the market averages because I use my money more that once in any given month. I will show you how that works.
 
     $100 invested all month can only return profits (or loses) 1 time in that month.

     Even if I only invest $75 of my $100 twice (buy $75 in stocks, sell at profit - repeat), I now have the opportunity to make a profit on $150 (1&1/2 times my $100) If I do that 3 times, I have the profit potential from $225 (2&1/4 times my $100).

     The $100 invested all month will see daily ups and downs (unrealized on paper) and may or not end the month higher.
      By taking profits and just reinvesting the principle (not the profits), I am assured of some profit from the month even if the market is flat (closes where it opened with no gain). I have make some profit even if the market closed lower.

     I never give back my profits in any given month. Each month is independent of another. Even if I just mimic the market returns, I have beaten the market profits because of the leverage created by my trading.

     Please read and re-read this until you fully understand it.



Disclaimer, I am not a professional.

   

   

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