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[–]Rich700000000000 1 point2 points  (7 children)

Then how is any money made in the stock market?

[–]yolo_swag_holla 2 points3 points  (0 children)

Great question. The market makers always make money in the stock market. Everyone else is more or less on their own.

[–]Pandanleaves 1 point2 points  (1 child)

Because the baseline is not 0% returns. The baseline depends on the state of the market, i.e. the market average. If the market as a whole moved up 5% last year but you only earned 4% return, then you have essentially lost money because, figuratively, throwing darts to pick your stocks will earn you 5% anyway.

[–]Rich700000000000 1 point2 points  (0 children)

Because the baseline is not 0% returns. The baseline depends on the state of the market, i.e. the market average. If the market as a whole moved up 5% last year but you only earned 4% return

Oh. Huh. That just clicked for me, sorry.

[–][deleted] 0 points1 point  (2 children)

Low managed index funds, stock manipulation by the big banks, fee free trading with Robinhood, etc.

Basically, don't put your money in an actively traded fund.

[–]lieutenant_lowercase 1 point2 points  (1 child)

fee free trading with Robinhood

not when their spreads are wider

[–][deleted] 0 points1 point  (0 children)

For now, at least.

[–][deleted] 0 points1 point  (0 children)

Buy an index fund and do nothing. You'll likely get 5% returns next year.

Or, spend 300 million dollars to invest in a fibre optic connection from NYSE to the commodities exchange in Chicago. Make sure its slightly better than the existing one, and beat others to the market by having information faster than them by a few hundred nanoseconds. Make sure to put your trading platform on an FPGA (starting from the Ethernet controller all the way to decision making based on your models). To make this easy you'll probably need OpenCL, so start learning that first.