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Advantages And Disadvantages Of Beating The Market

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Is it possible to beat the market?
"Playing the market" refers to trying to earn a return on investment greater than the S & P500 index, the US stock market performance of the most popular benchmarks.

Investment costs are a major obstacle to overcome market. If you put a popular advice to invest in the S & P500 index fund, your investment will perform the same S & P500 index and investment costs will be deducted from the proceeds, to prevent you beat the market. Looking for an ultra-low fee and 0.1 to 0.2% per year in funding, you will be close to equal to the market.

Taxes are another major obstacle to beat the market. When you tax your return on investment, you lose a significant percentage of your profits by more than 15 percent, depending on your holding period.

Investor psychology
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Success is not guaranteed. You may also be able to, if you have information superiority outperform, but those with superior information is often the industry and trade material, non-public information is called a serious offense of insider trading.

Some investors through what appears to be excellent analytical skills made a fortune. Like Peter Lynch and Warren Buffett household by picking individual stocks achieved their success. There are more people you have never heard of a similar strategy to try and fail. Even the most professional fund managers can not beat the market, although this is not a popular theory, Lynch and Warren Buffett might just very lucky, even financial whizzes. Highly respected economists, in fact, show that a randomly selected portfolio of stocks can be performed, as well as one carefully combinations.Is it possible to beat the market?
"Playing the market" refers to trying to earn a return on investment greater than the S & P500 index, the US stock market performance of the most popular
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