Stock Market Cafe
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Stock Market Cafe
No Result
View All Result
Home Trading News

How you could have turned $1,000 into $1.3 trillion by perfectly trading the S&P 500 in 2021

by
January 5, 2022
in Trading News
0
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

If you had $1,000 and knew exactly the right stock to trade every day, how much money could you make in a year? In 2021, trillions.

A trader who began 2021 with $1,000 in a brokerage account and put all of the money in the best-performing S&P 500 company each day of 2021 would have $1.3 trillion in that account today—and hold claim to completing an effectively impossible task.

RELATED POSTS

China’s Xi says Hong Kong is moving ‘from chaos to governance’

Kohl’s terminates sale talks with Vitamin Shoppe owner Franchise Group, sources say

By March 8, they would have reached $85,163, exceeding the US household median annual income. Buying shares of Equifax on April 22 would have brought total gains to over $1 million. A month later the balance would hit $5 million with a trade in Enphase Energy.

The trader would be a billionaire on Aug. 27, after riding Occidental Petroleum through a 6.9% one-day gain. They’d reach $10 billion on Oct. 18 and $100 billion on Nov. 16. They would have eclipsed Elon Musk as the richest person in the world after hitting $285 billion on Dec. 2 (Musk was worth a mere $284 billion on that day, according to Bloomberg). Over the course of the year, the trader would not have taken a loss on any single day.

How to trade a perfect 2021

Here’s a day-by-day calendar of the S&P 500 stock they would have had to invest 100% of their portfolio in to pull off the perfect trading year.

Moderna, Tesla, and APA shares were frequent top performers

Although the S&P 500 index has 500 members, only 137 companies were the top performers on any of the 252 trading days in 2021. The most frequent top performers were Moderna, Tesla, and oil driller APA:

Of course, once the account balance had grown past a certain point, it would be impossible to put it into any stock without drastically affecting the stock’s price. In many cases, putting it all into the best-performing company on a given day would have been impossible—there wouldn’t have been enough shares to buy.

Our analysis also did not take into account trading fees, nor changes in the composition of the S&P index through the year. As in prior years, we assumed that all companies allowed for investment in fractional shares.

Moreover, even if one made the impossibly optimistic assumption that picking the best stock of the day is a 50-50 guess, there would be a one in 7.24 quattuorvigintillion (7.24 × 1075) chance of matching these results.

ShareTweetPin

Related Posts

China’s Xi says Hong Kong is moving ‘from chaos to governance’

by
July 1, 2022
0

Chinese President Xi Jinping and Hong Kong's new Chief Executive John Lee at the swearing-in ceremony on July 1, 2022....

Kohl’s terminates sale talks with Vitamin Shoppe owner Franchise Group, sources say

by
July 1, 2022
0

In this article KSS FRG A Kohl's store in San Rafael, Calif. Getty Images Kohl's is terminating talks to sell...

This was the worst first half for the market in 50 years and it’s all because of one thing — inflation

by
July 1, 2022
0

Traders on the floor of the NYSE, June 13, 2022. Source: NYSE A multitude of factors conspired to generate the...

Here’s what China’s real estate debt crisis could mean for Asia junk bond investors

by
July 1, 2022
0

Real estate and related industries account for more than a quarter of China's economy, according to Moody's estimates. CFOTO |...

Stocks could drop 50%, Nouriel Roubini argues. Things will get much worse before they get better.

by
July 1, 2022
0

NEW YORK (Project Syndicate)—The global financial and economic outlook for the year ahead has soured rapidly in recent months, with...

Next Post

Nasdaq falls 1% as tech stock losses continue, but Dow is in the green

Drugstores struggle to keep Covid at-home tests in stock as omicron rages across U.S.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Crocs sees fourth-quarter sales up 42%, CEO Andrew Rees says 2021 was ‘exceptional year’

    0 shares
    Share 0 Tweet 0
  • Buying a car from the factory sounds expensive, but it can actually save you money. Here’s how to do it.

    0 shares
    Share 0 Tweet 0
  • Roth TSP vs. Roth IRA: How Do They Compare?

    0 shares
    Share 0 Tweet 0
  • The states that won’t tax military retirement in 2022

    0 shares
    Share 0 Tweet 0
  • Allbirds stock has plunged 50% in two months, now one top analyst says buy it

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.stockmarket-cafe.com
No Result
View All Result
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.stockmarket-cafe.com