You'd think if I took the Stock Market for everything it was worth it'd be a bad idea.
Well, I meditated on some highlights from my past studies on why Day-Trading has been encouraged.
What I've been led to believe is that they have "Tickets." It's what they call a trade when it's processed by a Broker. When a trade goes to be processed it's given its worth.
Let's say a share is sold for 5 dollars apiece. When it was sold at that amount the total amount of shares available wasn't necessarily considered. What was, was that however many shares I sold for 5 dollars apiece were put into the share's outstanding.
So what should happen and what I'm trying to achieve is that when a stock is at a low I'm going to buy as much as possible, 9.99% of the total amount of shares available, and it'll convert however many share's outstanding to the 5 dollars apiece value that they were at.
If we do that, and I'm told it's why they encourage trading, then let's say Microsoft will have every share at its lowest value. I traded it ten times and bought every share available (9.99%x10) and it resulted in every share being worth 5 dollars apiece.
So as to say.
So what would happen ultimately is that instead of having shares worth 6, 7, 8, 9, and 10 dollars, every share would be worth 5 dollars.
So when people reinvest they're paying the cheapest amount possible, but Microsoft would get the greatest value off of their shares.
Why is because of an investor paying 9 dollars, originally, when the stock averages or gains 10 dollars, but then after I invest they'd be paying 5 dollars. So Microsoft sold each of their shares for 5 dollars when they'll lose money to have it sold at 9 dollars again.
Because it was at 10 dollars, went down to 5 dollars, and people sold the entire way down. So now they have a hundred million shares worth 9 dollars. Well people will have to pay over 9 dollars for them to earn profit.
Whereas if I invested and turned every share available into a value of 5 dollars, they would earn money at 6, 7, 8, 9, and 10 dollars. Even 5.1 dollars, seeming on how the value was 5 dollars apiece.
I don't know if they still operate that way. But they probably do.
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