Started by MD-Quinn [3596389] on in Stock Market.
Posts archived: 3 / 3 posts (100%) · the total is Torn's reply count + the opening post at the last fetch
Counted by TornLife from the archived posts.
I get that trading the stock market daily isn't that lucrative, but if I have 350m to trade with I can make good money.
Why would I invest in SYM block And just leave my money there for weeks for a weekly 3m ?
What am I missing here?
Is it just a passive income that people like to forget about?
In stocks 3.0 the market isn't as volatile so people can't really day trade + it's no-longer selling to players so the SYM dividend is just a nice 32% AER
You can not expect to make beyond a certain point per month relative. In other words, that means if a dividend surpasses the average return you can generate actively, you will literally earn more doing nothing than trying to trade. It's literally just math that you're missing.
SYM: provides 4m a week, that is, around 16M a month
Your average trade return per month would have to surpass 16M/SYM Block Cost*SYM Block Cost (collapses to dividend sum) to justify using that blocks capital as trade capital instead. For instance as of now, and presuming an average net return of 2% a month:
== $16,000,000/$341,545,000 = 0.049 == 4,9% per month in passive dividend value.
Active:
== 0.02*$341,545,000 == $6,830,900
In result, you'd be losing -$9,169,100 in opportunity cost per month on average. That is, before considering you put up time to trade.
It's the same matter as with running a business in real life. If it doesn't exceed broad market returns by a considerable margin, why bother? Just earn passively instead.