I was thinking, what if you brought $1000 (amount is irrelevant) worth of stocks from every company that profited from the previous day, wouldn't you just about always make money off of this? Over half of the companies would have to go negative the next day for you to even lose money and what are the chances of that, given they profited yesterday?
>>1359300
welcome to the game
>>1359305
Is this actually what people do? just buy a loads of stocks from profiting companies and hope the entire economy doesnt shit itself?
>>1359314
I'm no fortune teller but that doesn't sound like a strategy that will benefit you in the long run. A company can lose value quickly
>>1359300
The price of stock does not reflect the company's profits, lol. It reflects the going rate for shares in the market. It's like an eBay auction.
>>1359300
This works until a Brexit... like Apple taking a shit all month. This also doesn't always work because sometimes when a company pops up 10% it's only to pump it before it dumps 15% and then you get screwed.
>>1359300
because for 1 - 1000$ isn't alot of money to invest, gains would be minimal, especially when spread across multiple stocks and when taking into account either exchange rate or broker commission and 2 just because a company made a 5% gain one day means jack shit, some companies go up and down more than that on a daily basis
>>1359348
>>1359367
Couldn't you set it to sell once it goes over say -1 to -3% during the day, so the losses would be negated by the other profiting companies, or do these massive drops happen so fast that you can't pull out?
>>1359384
The amount invested is irrelevant, as long as it's profitable you could ram up the initial investment amount to increase gains, also Robinhood offers commission free trading I believe
>>1359398
The amount is completely relevant it makes the difference between making 10$ to 1000's especially when taking into account all the things I just mentioned. Sometimes investing small amounts you will see no gain period even if it does go up from the price you bought it especially when investing in foreign securities, and robin hood sucks, if you're gonna leave things to chance in the first place I would at least give yourself the best chance their is.
>>1359414
Ok, what if it was 1 million per company, brokerage fees would be nullified, also ignoring foreign securities
Because trading fees would eat you alive.
>>1359423
if you transacted $1 million of stock end of day, you'd be limiting yourself to a selection that does a $volume/minute of at least $5 million. otherwise, the ask would most certainly change a substantial amount, causing you to miss whatever limit price you set. it would then be better to spread out your buys/sells throughout the final hour of trading.
now you have brokers that charge, per transaction, per shares traded, or per transaction amount/trade.
you have to adequately assess market impact, order slippage, and stock selection. additionally, by choosing stocks that have the necessary liquidity, you will generally limit the % price swings and thus your profit potential. just think a second about why that is.
btw, even suggesting to use RH in such a massive transaction is fucking stupid.
