Can someone explain to me why I shouldn't just put all my money into a Vanguard ETF that has been performing exceedingly well for the last few years?
Is it literally that easy as to just buy as much of it as I can and wait?
Why exactly do daytraders and such exist when you can seemingly just buy one security and receive above average returns on it?
Some of the ones I've looked at literally boast 10%+ p/a since conception...
And considering this shit statistically beats nearly all actively managed funds that people keep saying, isn't that pretty much le secret trick?
Why do people even bother insetad of just dumping in their money into those kinds of ETFs and sitting back?
Most people who day trade lose money. In day trading for every dollar someone makes, another guys loses more (you get eaten by HF traders these days). If you're a smart guy you may be able to make more, but most likely you'll lose money and give up. Most people who day trade loss money and give up true, but the people who are successful keep day trading and get even better end even more successful, hence the epic stories you hear about how easy it is to quit your job and day trade.
But of course for people who invest long, usually everyone wins. You can keep your 8% average return, or roll the dice for higher or lower gains day trading. Or you can take a small amount and try your luck a day trading, make the success day trader a little bit richer, and never do it again.
When the odds are stacked so heavily against you it makes no sense to me.
Correct me if I'm wrong but this is my understanding:
Do nearly no research, dollar cost average into low cost ETFs
Results: Nearly no time/thinking involved, make ~8% p/a returns, beating majority of day traders
Try your hand at meme trading, most likely losing money if not making under minimum wage, AT BEST you spend years to get good enough to make *slightly*(still unlikely) better returns than le ETF guy.
(This ignores the opportunity cost and thinking involved which certainly has a very high value but would only put the pepetrader in a worse situation.)
Seems like a nobrainer desu.
you have to compare these returns to the appropriate index which all performed for 15+% recently thanks to quantitative easing. but sure just put all your money in a etf and dollar cost average every week.