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5

There are a number of factors that will not make your theory work. First off actively managed funds do tend to profit in most years. So if you do exactly the opposite, you would lose money. Secondly there is a cost to trading. When you buys-sell-buy your costs are triple that of those that just buy. Basically that is what an index fund does, just buy. ...


4

@BenVoigt's answer is pasted below so people searching for questions with no answers can avoid this one. Your final paragraph is correct. The managers are not enough better than dumb luck to pay the management and trading costs. But they aren't necessarily worse than dumb luck either, certainly not by enough to make your "opposites" proposal work.


3

From what I can see, their market cap is about 17.8B CAD, or 13.6B USD. The symbols you found are the common and class A shares (which have equal ownership according to their financial statements), and the same shares listed in the US (CDNTF and CDNAF) Munich (YAAA.MU), and Stuutgart (YAAA.SG). The two classes of shares are additive - the same shares ...


1

A correct response will be a list of books or resources that successful day stock traders deem to be a good learning source. There are tons of books with a mix of contradictory view on truth, half-truth and hindsight. So reading those "trade secret" books is not enough. I will suggest you go invest part of your fund on a prudent stock that you gain most ...


3

Assuming that this is the US and if you have less than $25k in a cash account then you can only day trade settled cash (T+2). If you make more than 3 day trades (options and equities) in a rolling 5 business day period in a margin account then you are considered to be a Pattern Day Trader and must maintain a minimum equity of $25k in a margin account on ...


1

Why would there be a problem? A bankrupt company would be removed from the index at a price of zero, or close to it. They don't retroactively remove the company back when it was at its peak.


3

The Dow (Dow Jones Industrial Average) is composed of 30 large, publicly owned companies based in the United States. As you said, the value of the Dow is not market capitalization-weighted, but rather the sum of the price of one share of stock for each component company, adjusted for dividends. The components of the Dow have only changed 52 times since its ...


2

Companies move in and out of the index for multiple reasons. Some fail, some split, some merge, some are bought, some change so they no longer qualify. The team that creates and maintains the index determines what companies qualify, and then slowly makes changes as conditions change. For the individual investor the selection of a fund that follows the ...


4

Assuming that your broker offers after hours trading and you have approval to trade during it then in terms of mechanics, trading in the pre- or after market is no different than during the regular hours. If your price matches that of a counter party, your order is filled immediately and broker notification is the same as it is during regular hours. There ...


0

"However, what is the point for posting your own bid and ask?" You can't. Only market makers can do that. You can only place limit orders that enter into the market makers' order books. Based on this question and your previous question you need elaboration on how markets and market makers work. Non-market makers can never sell above bid or buy below ask. ...


-1

Your forgetting about the liquidity of stocks and how price is controlled by perception. Let's look at public markets as an example since they are the most liquid. Stocks are freely traded on the open market and prices are determined by perception. Value is subjective. This may seem irrational, but it's how the system works. Most investors are investing ...


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