Question

Your friend tells you he/she is a day trader and tells you how he/she bought Apple at a low price and has seen it rise by over 100%. Why might you not be impressed and what would you do about your stock market investing?

Answer 1

I would not have been impressed because since she is a day trader and Apple has not risen 100% in a day, so this is an incorrect statement.

There are very few instances where the share grows more than 100% in a day and those shares are mostly highly low capitalised shares but Apple is having the highest market capitalisation in the United States and if it goes up by 100%, It will mean that the share market will also go up by more than a by 20 to 30% at least, so this is an incorrect statement by her and I would be left and impressed by her false claims.

I would be investing in those companies who are high growth companies and who have a potential of higher market share and I would be trying to increase my holdings in those shares by investing in long term so that I could be maximize my overall rate of return of investment by staying disciplined in the process of investment.