For example consider a million traders have all randomly invested in a stock. If the stock rises, they sell and move on to another stock. If it falls, they withdraw completely from the market. Each stock has a 50/50 chance to rise or fall.
In this hypothetical market, after 2 random trades (given in your post) there will still be 250k people that have consistently been right. This does not mean they possess supernatural intuition; they just happened to be on the winning side of a random draw.
The market is and always was a basic barter-and-trade system. To become successful at a barter-and-trade system you must have the ability to evaluate the value of each stock, while controlling your greed when things are going well and controlling your fear when things aren't going well.
If a person has no knowldge and skills about Forex then it will be very difficult to trade in Forex. But if you use the right software you can make very good profit. The best software is called "autobinary signal". If you aren't a big expert this software is the only way to earn good money in Forex.
You will lose all of your money investing like that. You're not investing intelligently.
My advice would be to divide your money into 50% (bonds), 40% (very safe dividend paying value stocks-diversified) and the remaining 10% you can keep doing what you're doing. Don't deviate from that until you at least have some idea what you're doing.
I agree the rest of the people who answered are scared or will never had that kind of money in their lives to make decisions like mine.
Use a price momentum technique, I would say, a multi-time frame price momentum approach.
Past winners are likely to remain future winners
Oh well, the money was inherited - easy come, easy go.
I am a 23 year old Finance major. I was very fortunate to inherit a small fortune with a total of $400,000. Although my professors tell me to never put all your money in one stock, a part of me feel its okay as long as its purpose is to achieve short-term gains. Whenever I pick a stock it's always intuitively and never based on financial information. In November 2012, my gut instinct told me to buy Netflix at $78 per share which I did and now it's worth more than $400 a share. Recently I purchased SolarCity at $47, my intuition told me to put all my money in but it was conflicting on what I learned in class so I put in only $8,000. Four weeks later it rose to $71 per share and if I put all my money in and sell out I would've had a 50% return in just 4 weeks which would have been more than $200,000 USD. I have met many other investors who also rely on their intuition rather than the facts.
