Humans are very bad at making random decisions and the policy that you advocate has little to do with randomly buying stocks.
There’s zero sum competition between traders (actually it’s a bit negative sum, given that trading fees are involved). Some of those traders are hedge funds which complex computer models and highly payed analysts. Those hedge funds can make some money by taking the opposing trade from dumb market participants.
If you believe you have better knowledge about what the price of a stock should be then the hedge funds because you have private information/insights, then you might profit from entering the market. If you think you have worse information then them, you are likely on average losing money to them.
It’s worth noting that purely random decisions might be a bit better then index funds as index funds have to buy a lot of stock in predictable times four times each year and there needs to be a market maker that sells them the stocks and that can make a little bit of profit for being the market maker.
Humans are very bad at making random decisions and the policy that you advocate has little to do with randomly buying stocks.
There’s zero sum competition between traders (actually it’s a bit negative sum, given that trading fees are involved). Some of those traders are hedge funds which complex computer models and highly payed analysts. Those hedge funds can make some money by taking the opposing trade from dumb market participants.
If you believe you have better knowledge about what the price of a stock should be then the hedge funds because you have private information/insights, then you might profit from entering the market. If you think you have worse information then them, you are likely on average losing money to them.
It’s worth noting that purely random decisions might be a bit better then index funds as index funds have to buy a lot of stock in predictable times four times each year and there needs to be a market maker that sells them the stocks and that can make a little bit of profit for being the market maker.