Is there something I'm missing when thinking this isn't possible?
Apart from the risk of not being able to diversify your portfolio and bearing the risk of your investments heading south each week how is this not a bad idea?
With the right research and knowledge, say taking the to research a range of stocks that have the possibility of increasing 5% over the next week? It seems possible if you take the time to research each company and have the balls to risk it. It doesnt seem that impossible to find a stock that will rise 5% each given week and sure you may take some loses but this could be minimized by staying alert and dropping out of the investment before things get too bad right?
>It doesnt seem that impossible to find a stock that will rise 5% each given week
Then do it faggot. We'll all be worshipping you as a financial god, and you'll be the wealthiest man in the world.
(Or you'll inevitably fail, lose money, and stay a NEET poorfag. One of these alternative is quite likely.)
The simple way to refute this plan is by simply saying:
If you think a stock is going to go up 5% this week and are right - then professional investors with a lot more resources than you all over the world will already have anticipated it themselves and acted accordingly.
You, personally, will not beat the market. Especially to the degree you are suggesting.
Also brokerage fees etc. etc.
You are overlooking the fact that you have to get it right every single time. One 20% drop and you'll be knocked bak several weeks. And if you see your 5% opportunity in a short, what are you going to do? Go short with your whole account? You just discovered the principle of compound interest, which is the ABC of investing, and you think you found the Graal. Hate to bring you down, but better that than ruining yourself.
I think it's fair to say that if hedge fund managers with access to some of the brightest minds in the industry cannot outperform indexes in the modern day, this guy probably won't either.
Even if he's a sharp motherfucker (and who knows? Maybe he is?) there are marginal returns on investment.
The more you grow your starting capital the harder it becomes to offset all sorts of shit:
Taxes, lack of liquidity (imagine having enormous positions in a stock that you cannot liquidate for at least 60 days without crashing the stock), inflation, and everyone wants a piece of your wealth too, from gibs to politicians, to judges.
You need to hire legal counsel. You need to grease the right hands and line the right pockets.
You can probably do alright for yourself early on, but when you hit a Bill Gates/Warren Buffet/George Soros type level, good fucking luck m8.