Assume someone wanted to invest in stocks for the sole purpose of profiting as soon as possible.
Given the risky nature of stocks, would investing bigger amounts of money increase the chances of more profitable returns over a short period of time (within years)?
I ask because some people have compared stock buying to gambling, and in gambling you are more likely to win if you spend more money, even though you'll most likely not profit.
Long stuff here; can skip::
Here's an example: Say I want to test the stock market, and try and buy stocks. I spend 100 on stocks and another person buys the same shares from the same company but buys more shares (spends 1,000). Are they more likely to see profitable returns or is there no difference?
I know that if you buy more shares and they pay dividends, you earn more money from dividends, but since you spent more money you'll have to earn more back progressively to profit over the initial amount -- so that makes it seem like the odds are not very different regardless of you spending 100, 1,000 or even $1,000,000. The only way I see the big angle of this is if you bought very many shares, and their value increased at least ten times, which would yield 1 x 10 * total shares -- and that could very well give you profit. The odds of this happening seems very, very low though.
Dividends can very well pay good money, but to profit from them alone is not something in the near future that's going to happen since they don't pay enough, and you'd have to progressively spend more to get more in dividends which always yields a larger, equal dividend return to initial investment ratio -- which means the profit to spending ratio with dividends alone will never change unless dividends pay very large amounts (I'm talking 25-50% of the share market value); thus, profiting over your investment in short periods of time from dividends alone is not possible it seems.
Share values fluctuate, but generally within the range of a dollar or less. It seems that, at this minimal value, possible profit is going to be very small unless initial investment is very high.
This is how I understand it though.
I very well understand the prestige value of shareholding -- but this question focuses solely on the monetary value that regards profiting in the near future.
Basically, are you more likely to see profitable gains faster if you buy more?