[IDEA][Un-Tested]Playing the Stock market

[Periwinkle]

hey everyone. i've had this idea for a while, but never tested it. basically, what you could do is buy 10 shares in 5 different small cap mutual funds, which all either fail or increase greatly in value. chances are that one or two of these funds will make a lot of money, and go up in value by a decent amount. the diversification of your investment ensures that you will not lose money. all you would need is one fund to succeed. would this work? if not why?

[Poppins]

Hi Periwinkle!

In theroie yes it could work. But saying that maybe 2 and best will succeed will leave the other 3 to fail. If your loss is bigger on the 3 than your profit is on the 2 then you will make an overall loss.

-Poppins

[Rhythm]

Hi Periwinkle!

In theroie yes it could work. But saying that maybe 2 and best will succeed will leave the other 3 to fail. If your loss is bigger on the 3 than your profit is on the 2 then you will make an overall loss.

-Poppins

Well put. I myself have invested and have found that short term investments are rarely good money makers unless you have a LOT of money to invest.
But I don't know much about mutual funds, so I'm probably not the best to take advice from.

[Christopher]

It probably could work.....But wouldn't it just get tiring after a while.

[Kaleb]

Hi Periwinkle!

In theroie yes it could work. But saying that maybe 2 and best will succeed will leave the other 3 to fail. If your loss is bigger on the 3 than your profit is on the 2 then you will make an overall loss.

-Poppins

/thread