Can you beat the market?

September 4th, 2008

There are lots of services on the Net claiming they can ensure that you’ll beat the market. Beating the market means achieving an average return higher than the market performance during the same period. It might seem easy to do, but it’s a very hard task that only a few services manage to do in the long run. So, where can you find such successful services?

It turns out that one of the best places to look for stocks that will beat the market is stock picking communities. These communities gather many excellent traders and investors that trade and invest using various strategies, trying to achieve the highest returns possible over time. They hold virtual portfolios that can be tracked and followed. One of these stock-picking communities is Yalicoo.com, where investors compete against each other, aiming to yield the highest return during the competition period (daily, monthly and quarterly competitions). The unique advantage that Yalicoo has over other sites is that every thing is done in real time. This means that you trade stocks (virtually) in real market prices and can see all the other investors’ moves in real time. This allows you to copy the moves of the investors you like into your real money portfolio.

The statistics shown in Yalicoo are quite impressive and hard to ignore. The winner of Yalicoo’s last monthly stock market competition had a return of 40%; in the previous monthly competition, the winner ended with a return of 17%. One month earlier – 22%, and the month before – 14%; and this goes on and on… If you followed these winners’ moves (and it’s easy, since you can see every thing they do in real time at Yalicoo), your real money portfolio could have grown dramatically.

In the last year or so since Yalicoo was launched, Yalicoo investors have been consistently beating the market in almost every time frame I checked (!). Obviously, there is no guarantee for future success in the stock market, but in light of the results shown here, these higher returns of Yalicoo’s investors definitely show a clear trend of success.

The number of educational sites on the Internet is enormous, but I encourage you to visit as many of them as you can to continuously educate yourself. Still, places like Yalicoo are excellent complementary arenas for investors who aspire to maximize their returns over time.

Last 5 posts by Yinon Arieli

• How cheap are stocks now? - October 26th, 2008
• New Wall Street Terminology - October 18th, 2008
• What does Warren say? - October 15th, 2008
• Should you buy now or wait for a better time? - October 2nd, 2008
• Understanding Fundamental and Technical Analysis - September 27th, 2008

Entry Filed under: Stock Trading Investing strategies