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Trading stocks

Started by ANXIETY_ [3853621] on in Questions & Answers.

9 replies · 148 views · thread synced · 9 days ago · View on torn.com
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ANXIETY_ [3853621]

At what volume/nw is trading stocks worth your time? One of my friends claimed he turned 20m into 5b in a few months ,buying and selling stocks few hours every day , I'm having a hard time believing that lol.

medutis88 [3721610]

20m to 5b in a few months isn't possible, even theoretically. He exaggerated quiet a bit :).

 

 As for when to start, whenever you have filled the bank, got some good stock blocks for passive income (like SYM and some others), and got some cash that you don't know what to do with. Strictly speaking, stock trading income should outperform passive income from simply holding stock blocks. That is a little bit difficult to track, if you don't have long term data. I would say give it a go, if you have a couple hundred millions to play with, but keep in mind that stock trading is a bit of a gamble, there is no guarantees for a big profit (or any profit at all). Also, it requires regular attention - you need to react to any changes in time, otherwise it will not work.

Novarius [3709924]

I dont think 20m in to b is possible. Or it would require a lot of work.

Put lets do some calculations average swings are in the magnitude of 0,5-1% are 0,5% fees are 0,1%. So if he would have predicted the perfectly we would end up with 0,4%-0,9% profit margin.

To transform 50m in 1b You will need 334-750  of such big transactions. Probably doable withing a year or so..Also this assumes perfect predictions.

This said good stock can probably beat the roi of a lot of the later stock blocks.

 

Scooper54 [2594546]

I dont have time for the math but chatgpt says the returns are:

 

 

If this happened over:

3 months (≈90 days): about 6.3% compounded daily

4 months (≈120 days): about 4.7% compounded daily

6 months (≈180 days): about 3.1% compounded daily

 

I would also like to see a NW graph for this and his secret!

Waxilium [3469889]

OP's question seems to have gotten overshadowed by a discussion about the outlandish claim his friend made (and I agree with the others, it's just virtually impossible to make an ROI with that much money in that much time simply by actively trading stocks a lot).

 

In answer for when to trade stocks: From the very first day, but, NOT for the purposes that your friend is claiming.  The downside of the Torn stock market is the 0.1% service fee charged on every transaction where you withdraw funds.  Generally speaking, smart trading will usually come out with a net profit, but that definitely adds a bit of a tax, and said profit will come no where near the absurd 30000% increase that your friend describes. Prior to owning a faction/company (which a new player should not do) or owning a upgraded private island (also shouldn't do early, rent instead), new players have far more limited means of easily storing and quickly withdrawing money.  Faction/company vaults are a thing, if you trust your leaders, but usually you have to wait on an officer with banking privileges to see your withdrawal requests, and that can be cumbersome when you need cash in a hurry. Caimans bank is terrible, annoying to fly to, terrible interest rate, and you are HIGHLY likely to get mugged while exchanging cash there. In contrast, the stock market involves no delay or tedium, and gives instant storing/retrieving of cash. 

 

The way you make a profit storing money there (even with the fee), is to do what IRL stock traders do: Diversify your portfolio.  Store chunks of cash in several different stocks, buying each when they are at a notable dip in price (I like tracking based on month for that) and all in stocks with a solid trend of upward growth for the all-time measurement.  That way, when you need money, it's highly likely that at least one of your piles of cash are trading at a higher rate than when you bought the stocks, and it is a strong bet that all of them will eventually be worth a higher price than when you bought them, if you wait long enough.

 

The main benefit of stocks is to get the Benefit Block bonuses which either provide passive boons or weekly/monthly payouts for goods that sell well (or just straight up hand you money).  

 

Lastly, the Bank is a better ROI then almost any stock (at least if you have full bank merits, which you should get), with the possible exception of the very first stock block of SYM and/or FHG (even then, bank often wins, depending on the daily interest rates when investing). Your main focus should be getting max bank merits and shoving as much cash as possible into the bank till it holds $2b. 

 

EDIT: Auto-correct wrote "books" instead of "boons" when discussing BB rewards. Fixed that.

IndyCision [2597200]

Thank you for the graph, those lines are way to steep for stock market flipping, but he did well with whatever it was :)

 

Wax gave a decent answer to your question a few posts up :)

Triarius22 [2763264]

Is this "friend" asking for $$$ from you for investing?  If you had 20/20 hindsight and could pick the perfect time to by in and the perfect time to sell, you would still not make anywhere near that ROI in the stock market.