Why do so many people here spend time picking stocks that are

But I do think you typically need a differentiated view (variant perception) and probably a mix of stocks that aren’t predominantly top 10 holdings in the index. It’s odd there is so little discussion here of small caps for a stock picking forum, IMO. So many posts I see here are a mix of …

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If 95% Of Traders Don't Beat The Market, Why Are So Many Stock

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Indeed. It reminds me of how a team of investment professionals and future investment professionals lost to a cat in a stock picking contest. For me, stock picking is done for two …

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How Hard Is It To Pick Stocks That Beat The Market?

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Then if you want to be sure to beat the market, all you need to do is to pick the top 20% of stocks 60% of the time which isn’t that hard if you look at all the crap stocks in the market. A monkey …

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Why Do Investors Say Stock Picking Is Risky? - Bogleheads.org

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Apr 10, 2020 · When people say stock picking is risky they don't mean with 10% (or .01%) of your portfolio. They mean you risk the money, however much, you invest in those particular stocks, …

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Why Picking Top Stocks Is Not Enough - Morningstar

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Jul 26, 2024 · And so, if you have a 100-stock portfolio where everything is 1% and you pick 50%-plus winners, chances are that’s actually going to do better than the index, which is going to …

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Why Do So Many People Have A Small Percentage Of Their ... - Reddit

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"Common wisdom" is not to have any individual stocks. Many people have 5% to 10% or more in individual stocks because they simply can't help themselves. Andrew Hallam in his book …

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FAQs about Why do so many people here spend time picking stocks that are Coupon?

Is picking stocks a losing game?

The results of this research make it clear that picking stocks is a losing game. By picking individual stocks, you have a higher probability of underperforming a risk-free asset than you do of beating the market. Stock pickers would tell you that all you need to do is find the 4% of stocks that drive the market, and you’ll be rich. ...

Why do stock pickers beat the market?

Stock pickers that do beat the market likely have done so due to luck rather than their brilliance and intuition. This is a perfect opportunity to remind everyone of a simple truth about decision-making; a bad decision (like picking stocks) can lead to a good outcome. That does not mean it was a good decision. ...

Why do people pick stocks based on companies they know?

"People are making decisions about what individual stocks to invest in based on companies they're familiar with," says Benz. "They often don't know how to do due diligence or research companies. So they're often going to pick stocks without the information they need to make good decisions." ...

Should you focus too much on a stock's price?

Investors should not focus too much on a stock's price. Instead, consider more important things in your analysis. You'll find that stock quotes don't actually tell you much about whether a stock is cheap or expensive. Share prices don't tell you how much of a stock you can afford. ...

Do stock pickers lose money?

The worst-case scenario for stock pickers is that the stock they pick goes to zero. While this is rare, it is not unheard of. Famous examples include Lehman Brothers and Enron. While it is rare that you would lose “ all ” of your money picking stocks, you will likely lose “ most ” of your money. ...

Why do people lose money in the stock market?

The first reason people lose money in the stock market is because they try to hand-select individual stocks that they think will be winners. Whether it’s because they heard someone on CNBC recommend that stock or because they use the product, investing in individual stocks comes with real risk attached. There are a few problems with the strategy: ...