facebookIs it really impossible to make money through trading over the long run? - Seedly

Anonymous

11 May 2020

āˆ™

General Investing

Is it really impossible to make money through trading over the long run?

I've heard that this is the case, is it true? If yes, why do people still trade?

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Elijah Lee

27 Apr 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

It's not impossible, just improbable.

You'll need to have a very disciplined game plan and stick to it, and learn to short the markets so that regardless of the direction of market movement, you'll still make something.

Further more, you will need nerves of steel, because it can be terrifying to see your money go down the drain when you execute your stop loss plan.

Probably 80% of those who trade will lose money in the end. 15% probably break even, and 5% make. But with that 5% chance, its enough to make people want to try. After all, we know the odds are stacked against us in Toto, but that 0.0000001% chance of striking a million (or two) makes people buy the ticket anyway.

Its possible, but probabilty is very low across the population. Dont confuse possibility with probability.

Yes, i believe generally not possible over longterm, and possibly an unhealthy job.

However, so...

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