How much money can one make with stocks? What is a good return? Do you have any books to recommend on the subject?
Earning with stocks
you mean by investing or by trading?
if you do it conservatively, 6% a year is about what you should expect , 10% is considered great.
if you do degen trading with leverage, it can be +1000% or -100%
read "the intelligent investor" by graham and the "market wizards" books
if you do it conservatively, 6% a year is about what you should expect , 10% is considered great.
if you do degen trading with leverage, it can be +1000% or -100%
read "the intelligent investor" by graham and the "market wizards" books
(03-09-2024, 11:13 AM)citron Wrote: you mean by investing or by trading?
if you do it conservatively, 6% a year is about what you should expect , 10% is considered great.
if you do degen trading with leverage, it can be +1000% or -100%
read "the intelligent investor" by graham and the "market wizards" books
Graham is a value investor, he stongly discourages low term investments.
Do you trade?
(03-09-2024, 11:13 AM)citron Wrote: if you do it conservatively, 6% a year is about what you should expect , 10% is considered great.
The nominal compound return on the U.S. stock market has been 10%, or 7% after inflation.
https://www.officialdata.org/us/stocks/s-p-500/1926
Average market return exceeds compound return by around 2%.
(03-09-2024, 08:16 PM)Archivist Wrote:Waiting for the market to crash to do the whole passive income etf thing, i have done the options and day trading thing.(03-09-2024, 11:13 AM)citron Wrote: if you do it conservatively, 6% a year is about what you should expect , 10% is considered great.
The nominal compound return on the U.S. stock market has been 10%, or 7% after inflation.
https://www.officialdata.org/us/stocks/s-p-500/1926
Average market return exceeds compound return by around 2%.
Not too successfully. The only thing that works is having strict profit losses and using leveraged etfs to trade indexs intraday.
Everything else is poison. I've trade earnings, options (selling makes some money, but not much).
I haven't done much fundamental analysis and do not know sector rotation. Stock picking seems weak. The only thing moving these markets are few high cap tech stocks.
Lately bonds have been good.
I have been doing discounted bonds (decent but not great fundamentals) because of low coupons. I also make sure the call date is in a couple of years, so I can benefit from getting the full price of the bond when called.
Alternatively, one can buy a bond at full price, competitive coupon, at which point, when rates go down, the value of the bond will increase.
Alternatively, one can buy a bond at full price, competitive coupon, at which point, when rates go down, the value of the bond will increase.
(03-09-2024, 11:13 AM)citron Wrote: you mean by investing or by trading?
if you do it conservatively, 6% a year is about what you should expect , 10% is considered great.
if you do degen trading with leverage, it can be +1000% or -100%
read "the intelligent investor" by graham and the "market wizards" books
Six percent is reasonable, but how do you ensure that the investment stays with inflation? The only thing I can think of is to have growth or value stocks, cash out at the right time, while everything else in dividend funds with a history of growth, never liquidating those.
(05-24-2024, 02:58 AM)nampa Wrote:interesting(03-09-2024, 11:13 AM)citron Wrote: you mean by investing or by trading?
if you do it conservatively, 6% a year is about what you should expect , 10% is considered great.
if you do degen trading with leverage, it can be +1000% or -100%
read "the intelligent investor" by graham and the "market wizards" books
Six percent is reasonable, but how do you ensure that the investment stays with inflation? The only thing I can think of is to have growth or value stocks, cash out at the right time, while everything else in dividend funds with a history of growth, never liquidating those.
(05-24-2024, 02:58 AM)nampa Wrote:(03-09-2024, 11:13 AM)citron Wrote: read "the intelligent investor" by graham and the "market wizards" books
Six percent is reasonable, but how do you ensure that the investment stays with inflation? The only thing I can think of is to have growth or value stocks
The Manosphere has always been an awful place to get investment advice. You got the combined wisdom of budget backpackers, secret whoremongers, over-testosteroned teenagers, and big baller trolls. What could possibly go wrong?
Before he died, Benjamin Graham repudiated his previous methods in favor of the Efficient Market Hypothesis.
https://www.grahamanddoddsville.net/word...201976.pdf
By definition stocks are classified into "growth" or "value" based on their P/E ratios.
Treasury Inflation Protected Securities are guaranteed to beat inflation by around 2% currently. If you want higher returns, you will need to take risk, e.g., by buying SPY or a diversified portfolio of stocks. But just because you do something risky like putting all your money in Nvidia does not mean you are getting a higher return.
If you get enough money to matter, then taxes will be important. Long-term buy and hold strategies or tax-deferred accounts will be important.
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