Is share trading 100% based on luck?

Question

If not, what are the strategies you follow to gain maximum profit out of the trade? from where can I learn all those?

Answer 1

One Multi-Billionaire in Investment said in his interview with Forbes - Luck is only 5% the rest 95% is sheer hard work.
But they mostly encourage investment for long term,
Trading is different.

Answer 2

There is very little luck involved. It requires skill, patience and diligence. It is very profitable if you know what you are doing and dangerous if you do not.

I recommend reading "The Intelligent Investor," by Benjamin Graham. Last published in 1972, it is still in print. You should do very well. I average about 20% per year and don't lose that often. Basically, using value investing, you are buying assets at 60 cents on the dollar and selling them at 1.50 on the dollar. Investments get overvalued and undervalued. You look for the undervalued ones and sell the overvalued ones.

It isn't that chance does not impact you, because it does, but it doesn't play that large of a role.

Answer 3

Basically, yes.

If you trade on a regular basis, 3-7-15 years into the game -- if you are honest and keep good records -- you will find that you are likely behind broad low cost index measures of stock market performance. (S&P500, NASDAQ Composite, MSCI® US Broad Market Index, MSCI Europe Index, the MSCI Pacific Index, and the MSCI Emerging Markets Index)

In three decades of watching both amatuers and professionals loose the game year after year while insisting they are winning, I have concluded that most people are gamblers caught between the thrill of the occasional kill and the relentless call of the vig.

Put your money in low cost diversified stock funds and don't look back. Trading is for play money only. If you can get someone to give you real money, that's great -- just never use your own!!

Answer 4

Trading in shares is like playing a game. If a person doesn't have the skills and if you lack the technical knowledge, he is bound to loose. Due diligence is required before investing.

Trading may partly be based on luck, but one has to have all the enabling factors in place. That is the knowledge to be in the right place at the right time.

Answer 5

No.it is pure home work and going along with the market tide and the investor fancy stock. You should also know the trend by which the market sways.Must be clear about the gains and swiftly move to active counters.You should have trader mentality built in your mind.The question of maximum profit pulls you back.That is what you fix yourself and book profit and at bad time never panic and square off.Do your homework abd be specifie about profit goal and you will definitly be a winner.

Answer 6

It seems to my that you are seeking the fastest and easiest way to lose all your money....

Better invest in someones small business. You will get around 20%-25% annual interest. You will not get such high returns on stocks, mutual funds, bonds or CD's.

I run my own business and I have profit margin of over 5% a month.
Some European banks pay 8% to 14% a year (5 years deposits).
Email me at [e-mail] for more information. I would advice you something if you are serious.

Best of luck!

Answer 7

luck plays a factor but mainly u need good knowledge of how share market works.also u should be able to interpret financial statements and varipus ratios of the company which give u an understanding of the company's financial status and about how much Return On Investment u will get.becuz the trading depends on these facts.

Answer 8

yaaaaa really good topic to discuss

----answer for this question is 80% no and 20% yes

----bcz suppose if u invest money without market study in penny stock or any other stock which is not performing well then definitely u will be in trouble

---- or if u have invested money today and finance minister announce some policy within a day or 2 which is against market or adverse news related stock then again u will be in trouble i.e. probability is very less

-----so if u invest money with good market analysis then this is not the game of luck

then stock market is game of nerve an brain

Answer 9

It is mostly luck, but the odds are in you favor because the stock market rises over time.

You can take advantage of this, by investing regular amounts in cheap trucker mutual funds and being satisfied with 8-10% pa, the historical average.

Answer 10

It depends on how you trade.

If you daytrade, then yes, it's basically luck.

However if you invest for the long haul and look for companies with bright prospects trading at reasonable prices, then you can make money off of skill, not luck.