The XKCD stock picking strategy

[CDRE]

For the above--

Image link:
https://imgs.xkcd.com/comics/picking_bad_stocks.png


Permanent link:
https://xkcd.com/2270/

 

[JoeWras]

Well, Fidelity's Contrafund used to do exactly this. I don't think they do anymore.

 

[LOL!]

Many many years ago I saw that for many, if not most individual stocks, the 52-week high was at least double the the 52-week low. That didn't tell me which came first: The 52-week low or the 52-week high. But it did tell me that if I picked some of the right stocks, then it should be easy to double my money every year.

 

[dadu007]

My son sent this to me yesterday, LOL. (Comp Sci major at the university)

 

[ERD50]

For the above--

Image link:
https://imgs.xkcd.com/comics/picking_bad_stocks.png


Permanent link:
https://xkcd.com/2270/

Hey, when was that published?

From my post, over two years ago (but not as funny, and no stick-man/woman illustration.):


01-20-2018, 12:22 PM

Nothing is like it is "supposed to be". At this point in the game, the trader's (and non-traders who didn't buy the index), should be expected to have normal distribution around the market (or our proxy, "nunnun"). But there is a bias to the downside.

The downside bias is interesting. In theory, it seems it should be just as hard (or easy?) to pick losers as it is winners. I don't think trading expenses account for the delta, they seem pretty low relative to a $1M portfolio. I just find it curious that so many are doing so bad, rather than just average

-ERD50

-ERD50