Question
Unless you trade too frequently, the expected value of a randomly made stock trade is positive, meaning that you will make money on average (both
Unless you trade too frequently, the expected value of a randomly made stock trade is positive, meaning that you will make money on average (both real and nominal - just buying stocks blindly can get you something like 3.5% per year, after inflation). (WARNING: that is not investment advice. There are all kinds of crazy things that can happen like recessions and market crashes. Also, lots of people trade too frequently so commissions kill them and they make bad momentum trades (most day traders lose money). But, on average, the expected value of a random stock trade is positive.)
The average expected value of a currency trade on the foreign exchange markets is _____. (You may google as much as you like for this question.)
Question 6 options:
positive
negative (would be zero if no transaction costs existed, but those costs exist, so, negative)
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