I find these numbers endlessly entertaining:
1. If you ever meet a trader or visit a trader’s website, know that there’s a 90-95% probability that he or she loses money. Considering 90-95% of traders brag about making money, that means nearly EVERYONE in this joke of an industry is a liar/fraud. Seriously. ALWAYS ASK TO SEE A AN AUDITED TRACK RECORD and list of all trades/investments, like THIS
2. If you ever meet a fund manager or visit a fund manager’s website, know that despite all his or her hard work and sure-to-sound-good-investing-talk, there’s a 70% probability that he or she fails to beat the S&P 500 each and every year. Index funds are better choices
3. If you ever hear about a good stock, know that there’s a 50+% probability that it will not go up over the next year (Contrary to popular belief, despite the S&P 500 and every other major index rising over the past hundred years, more than 50% of stocks each year drop…seriously)
4. 25% of all trading volume can now be pinned to algorithmic trading…check out THIS article
Posted in Basics