The stock market has always held the allure of turning modest investments, like $1,000, into fortunes, provided traders adhere to an ideal strategy.
In this regard, Market Sentiment’s analysis, shared on X on July 16, explored the hypothetical scenario of achieving billions by consistently picking the best-performing stock in the S&P 500 every trading day.
It’s worth noting that the index is currently among the best-performing in the stock market, recording consistent days of positive gains.
Picks for you
The analysis suggested selecting the top-performing stock in the S&P 500 across approximately 248 trading days in a year. Assuming a perfect record of picking the daily winner, traders could theoretically amass $179 billion in nine months.
However, this analysis underscored the near-impossibility of such returns through perfect stock picking, emphasizing the importance of realistic expectations and sound investment strategies.
Even starting with $1,000 and achieving remarkable returns, like $5,563 by the end of January, remains challenging, let alone reaching billions, according to the analysis.
Improbability of perfect stock selection
In this regard, the investment platform quickly pointed out the staggering improbability of such perfection, stating:
“The chances of guessing a coin flip correctly 248 times in a row are 1 in 452 trevigintillion — a 452 followed by 72 zeroes.”
To grasp the enormity of this challenge, the platform asked investors to consider that the odds of consistently picking the best stock among 500 options daily for 248 days results in a number with 670 digits in the denominator. For context, the total number of atoms in the universe is an 82-digit number.
This scenario implies that consistently picking winning stocks over a prolonged period is daunting. It surpasses the scale of many other mind-bogglingly large numbers, including the total number of atoms in the known universe.
At the same time, Market Sentiment advised caution, humorously noting:
“So, the next time you see a TikToker on Twitter promising these results, remember the odds are 1 in a Googol raised to the seventh power.”
Overall, while turning $1,000 into billions overnight through stock trading is tantalizing, successful investing typically requires a blend of research, patience, and a well-diversified portfolio rather than relying solely on luck and impossibly precise market predictions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
