That's why you need to invest in index funds (ideally the S&P 500 or Nasdaq 100), high-IQ companies - specifically Google Amazon and Facebook- or use the inverse ETF decay strategy that makes 20-40 percent a year.
Buying in-the-money call options using 3-1 leverage on Google, Amazon, and Facebook has returned 200% since 2013 vs. 30% for S&P 500.
The motivation behind this strategy is that average-IQ people can make good money piggybacking off the creative contributions of America's smartest .1%. Facebook, Amazon, and Google stock will keep rising, as part of this trend, allowing average people to profit by joining the ride.
But existential problems are harder to solve than money ones, and even the smartest are faced with them (hence philosophy as a subject).
I was with you until the individual stock purchase and leverage bit. For most people this is NOT a wise strategy as they have neither the investing experience nor savings to gamble like that.
The backtest of the strategy I developed risks $10k to make $100k since 2013. It attains maximum drawdown if all three stocks (AMZN FB GOOG ) fall 30% because 3-1 leverage is used. But since it's an option strategy, you don't risk more than the $10k invested. Yeah there is risk, but GOOG AMZN and FB have a combined market cap of about 1 trillion. It could be modified to be more diverse but returns are less. The sharpe ratio fr the strategy (which is a way of quantifying risk vs. returns) is 2 vs .80 for the S&P 500 in that period.
This strategy could be a good way for someone with a small amount of money to make quick returns and then later move to a more conservative strategy.
Buying in-the-money call options using 3-1 leverage on Google, Amazon, and Facebook has returned 200% since 2013 vs. 30% for S&P 500.
The motivation behind this strategy is that average-IQ people can make good money piggybacking off the creative contributions of America's smartest .1%. Facebook, Amazon, and Google stock will keep rising, as part of this trend, allowing average people to profit by joining the ride.
But existential problems are harder to solve than money ones, and even the smartest are faced with them (hence philosophy as a subject).